RE:Dividendrolacat wrote: I am beginning to see Chris' and Register's point about the dividend. Currently, PEY's dividend provides an 9.5% yield. Cut it in half and it still is 4.75% which is higher than its peers. It would clean up the balance sheet adding to cash go a long way towards cleaning up the retained earnings. I don't think PEY is in any danger of going under any time soon and their value strategy (as opposed to leveraged expansion) will provide the flexability to take advantage of distressed opportunities. I think Darren should announce a 50% dividend cut at the beginning of the new year and back it up with a projection of the impacts. Q3 dividends were $54,408K and cash was $1,561 on Sept. 30 as opposed to $2,102 on Dec. 31. $27M in cash could be used to reduce debt, buy distressed opportunities (Darren's buy low strategy), share buyback or ease the downside risk of hedging... all while providing a 4.75 yield at this SP. Analysts will drool and investors will buy and the shorts will run to cover.
Cutting dividends will be a good thing... as of right now, where do you think the $$$ for the dividends payout come from??!
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