As of right now Heartland has not promised to pay any dividend. Whether we get a token dividend tomorrow is unknown. But I would argue with all the capital raising over the years AND the market listed bond issues that Heartland have tapped NZX investors for, that Heartland has never paid out any net cash anyway. If you think of Heartland shares as a net zero coupon bond which nevertheless might go bust, how much are they worth? With that viewpoint, $1.20 does not look so cheap!
Even before interest rates got to their ridiculous lows of today, I had a long term policy of getting rid of almost all of my NZ fixed interests investments. I am not sure that the general investing public realise that NZ is one of the few countries where bank deposits are not guaranteed. But even that doesn't mean I will chase sharemarket yield at any price. Earning 1% at the bank is still better than losing 30% with an ill timed share purchase. I just have to keep telling myself to be disciplined and patient. And with most yield shares already overpriced in my view, the value that is still in the market is with those companies that have suspended dividends now but are poised to restart dividend paying. And with NZ banks, Grant Robertson holds the key as to when that can happen.
SNOOPY