Originally Posted by
fish
Hi Digger
You will Know my answer- I am strongly in favour of a dividend.
NZO have a massive cash hoard .
Interest rates for depositors has fallen to low levels-most of NZO deposits are in us dollars which i doubt will be earning much now-the big currency gains have been made . Its time too use it-sure spend most of it buying cheap assets . The drilling rigs can be paid from tui and kupe income .
However a 5 cent special dividend-fully imputated would cost less than 20 million dollars/ less than 10% cash reserves-why not?
I would imagine 50% of holders would prefer dividends as well as buying undervalued assets.
Currently I am paying 7.1 % pa to the bank .
Nzo will be getting about 4% on their nz denominated account . Keeping such vast sums needlessly on bank deposits is only helping the aussie banks and not kiwi investors in nzo !