Our final recommendation is to those investors who do not currently own shares in FPL. For these individuals we would recommend waiting until after the news of this new dividend structure, then “buy”. Based on the signaling theory, if FPL repurchases shares, the negative affect of the lower dividend may be somewhat offset; however we believe that the news of the new dividend structure will inevitably drive the price of the stock further down. The best time for these investors to buy is when the stock price is at its absolute lowest. If they wait until then, they will have the highest possible capital gain.