1. ARV does have fairly good cash flows, but I believe the reason they distribute more is because they have a lower re-investment rate, as a result of a lower build rate, and therefore ARV is lower risk.
2. ARV portfolio is quite big... it wasn't always this great, it was often compared to a dog on this very thread. ARV does have a lower build rate, and therefore one would expect a lower growth than a company that would have a much higher build rate like SUM - and I'd like to therefore think they have a much higher growth rate - they are borrowing significant SUMs of money (the most leveraged listed retirement company I think?) to do it for starters, and paying peanuts, not a dividend.
Also remember ARV also hasn't begun its 3rd stage, as outlined in it's IPO booklet late 2014 when it listed at 95 cents: greenfield development - for now it is gathering expertise, increasing geographic presence, and when the time is right, proceed to greenfield development - this is where growth rates (already pretty solid) will increase for ARV... the re-rating, based purely on brownfield development pipeline, has already begun (as shown by ARV being the best performing retirement stock - by far - in 2016), with the stock going from stupidly cheap, to being priced more appropriately.
As always, this is just my view, and DYOR.
I'm looking forward to some sort of third quarter update, alongside a 1.1 cent dividend... next quarter will be another nice lift in the dividend no doubt... would also be great if they had a DRP, they are hopefully looking into it.:t_up: