RE:RE:RE:Re: Some high volume daysThanks for this. They are conservative. And I'm not expecting anything quickly. But what are they going to do with all the cash when they aren't going to be aggressively seeking expansion? I'd personally prefer an aggressive share buyback program to a dividend. We'll have to see.
highalpha1 wrote: @LiquidOctopusV2: I think your comment fails to understand the orientation of CPG's new management. Craig B. and his team are uber conservative. CPG's primary objective is to delever. Once they hit a D/CF ratio of less than 1.5x, CPG will return money to shareholders, including in the form of dividends. However, I think you're dreaming if you think CPG will have a 5% dividend anytime soon.
When CPG raises its dividend, it will do so only in a conservative and sustinable manner. The times when O&G companies were outspending CF to maintain their dividends are long gone -- VET was the last example of this model. Even companies with rock solid balance sheets are providing less generous dividends. For example, ARX even AFTER its acquisition of VII is trading today at around a 1.5x D/CF multiple, and it has a dividend rate of less than 3%.
In any event, while I think dividend increases will be a lot more modest from CPG than what you are projecting, who cares if the share price appreciates significantly, which i anticipate. The name of the game is 'total returns', and so I don't put much weight in dividend rates.