Very true, Airedale.
We definitely do not want another Ogg situation ever again!
But SKT looks good to break the $3.00 level.
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Oh yes indeed.
But a $35M would probably be a 65-70% payout on an adjusted FCF basis (which would sit in the 50-80% payout range of FCF excluding one-off items).
So if we assume that The Board do not reneg on this commitment to shareholders, then a $35M dividend is not unrealistic. They may pay less depending on the needs of the business, but a $35M payout would still leave them with considerable Balance Sheet strength.
- $150M projected cash balance - $35M September dividend = $115M cash.
- In June they let us know about what they want to invest in as well as possibilities around a capital return or buyback.
- If they hold on to $25M from the peoperty sale to enhance investents that leaves $90M ($115M - $25M).
- If they do a $30M capital return or buyback they still have $60M in the bank (and zero debt).
So yes, a $35M fully imputed dividend is hardly aggressive and would seem very reasonable.
In which case, I look forward to my ~$60K payment in September :cool:
UP 10c over the week. 20c over the last month.
Up and staying that way.