Replace Special Div. With $1.25 Quarterly Div? Not sure if this has been contemplated, but if I were in TOU mgmt. I would seriously consider dropping the special dividend in favour of a considerably increased quarterly dividend. I suggest a $1.25 quarterly dividend or $5 per year.
I think an increased quarterly dividend would make Tou more attractive than variable special dividends to larger funds and investors. Currently these investors see and value Tou as a 2% dividend corporation which is really not attractive. For small investors I have enjoyed the special dividends for good reason.
I believe the share price is actually held down by the special dividends. Big investors want guaranteed dividends. As it is currently Tou stock goes up until the last trading day before investors no
longer receive the dividend, then proceed to drop by the amount of the dividend.
I believe with a large quarterly dividend announcement the share price will creep to the 70's in a fairly short period of time and with LNG Canada coming onstream in 3rd or 4th quarterly price is more likely to stay up.
Tou can state that in very profitable times a special dividend may still happen.
Welcome your thoughts.