I disagree.
I agree with Ronaldson that the dividend policy can and certainly will effect the SP.
I just don't agree that they should manage the dividend policy to try and protect the SP.
And I don't think they do.
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You say the only way they can effect the share price is with a buy back??
OK. Cut the dividend completely and see what happens.
Did the board just affect the share price or what??
It seems that for y/e 31/03/2022 the actual dividends paid during that 12 months were Final (for FY21) 2.1c and Interim 2.1c for a total of 4.2cps. Now for y/e 31/03/2023 the actual dividends paid are Final (for FY 22) 2.3c and Interim 1.9c for a total of 4.2cps - so unchanged albeit the higher Final dividend implied that if the Interim just paid today had been maintained at 2.1c the total would be 4.4cps.
In FY22 the dividends required an aggregate $29.3m against UNPAT of $56m. In FY23 with a marginally higher number of shares on issue the dividends will require an aggregate close to $30m. The half year UNPAT was $27.8m so full year should adequately cover that total figure. So I still believe the Board were meanspirited in not carrying through the increase implied.
they cut the dividend because cashflow has reduced .... plain and simple ..... they are conserving cash for the downturn.
Im expecting more dividend cuts too come
Yes, we are still awaiting the Capital Change Notice for yesterday's allotment from the DRIP to see how much cash has been retained from the gross dividend, but the % will be interesting. Of course, the offset is that the aggregate of shares on issue increases and NTA will be basically unaffected (ignoring the 2% discount calculation). It's like a mini equity raise.
O No - there it is! 5,352,547 shares issues or just over $4.3m cash retained in lieu. I was distracted by the World Cup football semi-final and took my eye off the ball!
That is a higher proportion going into the DRP for this current divvy compared to the June one, which was about $3.8m retained based on a higher divvy of 2.3cps.
Actually, I mentioned in the prior post it was 23% went into the DRP. That would be wrong because 2.3cps is the gross amount, and the funds into the DRP would be after tax.
Regardless there is a decent portion of the divvy cash that stays within the company.