USA Corp Tax CutsMFC paid 25M in corporate taxes in 2015 at the current 35% rate. At 20% that would drop under 15M and the 10M+ savings would flow straight to the bottom line increasing cashflow generation and reducing payout ratio without doing anything. 2016 was a special case with the acquisitions so with accounting tweaks they reported an earnings loss even though cashflow went up 5M from 45M in 2015 to 50M in 2016. 2017 is tracking higher than 50m, and with tax cuts/small patient growth/synergies this could easily generate 60-65m in cashflow in 2018 and a payout ratio with a 5 handle (55%). All this with no net debt.
This could easily be 20+ next year if US tax cuts are enacted with a 9% yield along the way.