(04-06-2014, 04:43 PM)Jack31 Wrote:(04-06-2014, 01:28 PM)Drizzt Wrote: i have taken this table from my post here >> http://www.investmentmoats.com/money-man...7-5-yield/
[Image: qcqqClY.png]
the current profit is around 564, so perhaps fully diluted 8.5 cents. in agm, there was a guy who kept saying he doesn't want to vote for a raise in dividends to 7 cents bcause they cannot pay for it.
Didn't attend the agm, Surprise that someone have the same qns as me of whether they were overstretching themselves with the bump in div. Partly why I was concern is toll road are depreciating assets, if they do not keep building up more cash,
End of toll period = 0
Don't see that as an issue. Unlike business trusts, companies pay out dividends based on their accounting profits which takes into account of depreciation. CM Pacific 'cash earnings' are significantly larger. In FY 2013, after adjusting for dividend payment to minority interests, CM Pacific generated FCF of HK$1.17 billion - this works out to 17 SG cents fully diluted. So one can see that a 7 cent dividend isn't taxing in any way. If it was taxing, we won't see its equity increasing or its net debt dropping. I always thought there were major mispricing when business trust with full cash payout could trade at a lower yield than CM Pacific. Perhaps if it was a business trust with 100% payout, it be trading at $1.70 at fully diluted ! Personally, I believe there is room for dividend increase if they wish to embark on a less aggressive acquisition growth path.
(Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.