04-28-2021, 04:25 PM
(04-28-2021, 04:00 PM)EricL Wrote:I base this on nothing but my opinion but...(04-28-2021, 03:49 PM)fenders53 Wrote: Times are hard and they are just trying to scratch by until next quarter Eric.Seriously though they could raise the mini div 25%, and buy back some shares with no threat to the balance sheet. They remind me of Buffet sometimes. I can only guess they are thinking just like your 100% SP increase this year.
Only thing I can think of is that they base the dividend off the trailing year's earnings. $0.88/$3.28 would be a ~27% payout ratio, which is generally in line with what they've done since instituting the dividend back in 2013.
Maybe next year we'll get the big dividend boost...
They instituted a very low Div yield as most true growth companies do initially. They didn't know the next ten years would be anywhere near this amazing. Annual Div increases great but it was 25% of not much and it takes a long time to compound when the share price is running too. The Div growth stats still look very good. It's not the worst problem you'll ever have in investing.
I bet they do a 25% increase next year, and buy back shares this year. Eventually the law of big numbers will make them stumble. Who knows what year that is. SP pulls back at some point, huge div increase to keep the shareholders happy. Current yield more like a mature DGI company as they enter the too big phase. I am starting to think that day is 3 to 5T market CAP for the big boys.