RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:They think we are stupid...I mostly lurk here, but i need to correct something. The dividend increases for most acquisitions have been around 1 cent or so. This one is not different. Name one acquisition where they increase the dividend 5 cents+?
The math works on this. They diluted by around 12%. They pay out close to 100% of their royalty revenues, so this increases their total dividend payouts by around 12% compared to what they're paying now. So, that's close to $5 million. Add in the actual dividend increase of half a cent for all shareholders, plus higher expenses and taxes, and that's where the new royalty amount went. Yes, they're not paying out 100% of the new royalty, but they want to see how the company actually performs in a real life post-Covid world first, to see if they can maintain or even grow their revenues. It all makes sense to me that the money is now mostly accounted for.
There's no money for a higher dividend right now, until we start seeing higher growth.