Another of your Bowling Club "investors".?
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I guess clever engineers are a bit like those "investors", who drive to Wall Street in a Rolls Royce, to be advised by "advisors" who caught the subway to work.
Yet some very good CEOs have an engineering degree.!
Just as well you and I know HBL are doing the right thing,although it would need me to do a Snoopy book to explain it.And I do not do Snoopy books,or sell them.!
Simply put,HBL understand their shareholders,and act at all times to grow the business. and pay growing fully imputated dividends,while making sure their capital ratios remain capable to fund their growth,without having lazy excess capital.
Always trying to be the best bank.rather than the biggest.
And they are succeeding.
esp if they didn't pay such high divies
If they reinvested divies and consistently made 12% ROE todays shareholder equity of $529m would be $5.1 billion in 20 years time ..... with a market cap of say over $8.0 billion ....share price $16 ....and a big bank
Just mathematics - nothing clever in that - and miles away from reality eh
Maybe we should get Snoops to do one his famous Buffett type tables as to see what generates greater return for shareholders over the years assuming a consistent ROE but with different payout ratios.
Think you are best to send him a PM .!!!!.....lol.
In reality investors must decide where to allocate their capital.
We have companies such as HBL and RYM.Both have ROE of over 10% and yet have very different dividend payout ratios.
Each company retains a certain % of profit to reinvest in their business.
It is very doubtful that investors could earn more than those companies', over 10%,so investors would be better to take no dividends from either company.
Yet the directors of both companies realise that in NZ ,very few investors would invest in them should they pay no dividend,
Over the past few years were have seen the market gravitate to high yielding stocks,to the point we have seen some posters on sharetrader, compare HBL with the Australian banks, solely on yield.I would think the directors of HBL are fully aware of this,and decide of dividend payout ratios taking that in mind,as well as their desire to grow the business.
Softness????????????????
I have been surprised by the share price strength.!!!!!!!!!!!!
Got down to $1.56 in the last few days at one point I think Percy. Strength is relative...has been hovering around $1.50 for many, many months so the recent spurt up to $1.60 was probably overdue.
$1.59-$1.60 feels about right to me...for now :) Onward and upward... $1.80 by Christmas !
Just filled in the maximum shares of 15k application