Originally Posted by
SparkyTheClown
I'm not sure a higher dividend will drive the price up. If you want a dividend play, there are better stocks like TEL, HLG.
For what is a smaller company, and technically a young company, the share price will be driven higher by the likelihood of future earnings growth. In the end, people will pay more in expectation of better profits in the future.
A smallish dividend though will attract some investors who need the comfort of the money coming through every six months. Arguably it also prevents directors and management from getting dangerous ideas in having too much cash lying around.