SPK- Spark NZ (TELCO)

[kiwikeith]

.......except, Kiwikeith's absolute worst case comparison (there is no plan to reduce the dividend as Keith has very conservatively assumed) the 20.625c 'lowered dividend' is net of tax. But his comparative term deposit rate of 5.2% is a gross figure before tax.

If we look at the modelled gross dividend it comes out as: 20.625c/0.72 = 28.646c
And that implies a modelled Spark gross yield of 28.646c/352c = 8.1%

I would call 8.1% a decent premium on the 5.2% available from a term deposit, particularly as one of the 'equity risks' shareholders face is the SPK share price going up!

SNOOPY

Thanks Snoopy I could not have written it better myself.

[Bobdn]

@Bull, thanks - you expressed my thinking better than I did! Your comment got to the heart of the matter.

[X-men]

Bought more.... largest holding....

[see weed]

This should work. It stopped the share price slide of another share I owned, when it got down to insane prices. Spark at $3.60!



SNOOPY

I remember sitting in a middle of a field in New Plymouth in 1974 with about 10 others smoking beer and drinking out of pot with 4 big speakers surrounding us with Dark Side Of The Moon full tit Money gingling loudly from one speaker to the other making me feel woozie just how I feel now. Hope you right about 3.60, if so in a couple of months we will be talking about the 3.60 club LOL.

[Perky]

I reckon you’re still on it….smoking beer.? where do I get this lol

[X-men]

$3.60...the devil no...

[see weed]

$3.60...the devil no...

God knows.

[X-men]

Indeed...never in this price for a long ...long time...

[mshierlaw]

Spark are efficient and laser focussed at what they do. But to suggest they should cut the dividend and use that money to reinvest in the business? There is no grand plan on the books that needs a bomb load of finance. They would probably just fritter the money away on something like, I don't know - 'Spark Sport 2'? How would that work out for shareholders? If the grand plan is not there, sometimes it is the right thing to do to give any excess free cashflow back to shareholders. Shareholders can then simply reinvest any such money as they wish.

SNOOPY

I was looking for the Spark dividend policy on their website but no luck. Does anyone have a link to this document please. May help me make a decion on buying another parcel.

[dobby41]

I remember sitting in a middle of a field in New Plymouth in 1974 with about 10 others smoking beer

Do you still smoke beer?
Any particular brand preferred?