RE:RE:Fourth Regular Dividend Increase in Five YearsI prefer the dividend be kept at 10c per share range, combined with an aggressive buyback program. That way I can take advantage of buying opportunities when I see fit (using the dividend proceeds), while my stake in the company keeps increasing (through the NCIB or a SIB).
I invest in Japanese value stocks, and have noticed something interesting. Companies in the doghouse (for weak ROE usually) often go into freefall until the dividend yield reaches about 3%. Japanese investors consider a 3% yield as "par", and this is a strong floor for the stock price. It has not escaped my notice that URB.A trades at about a 3% yield, right about par. If they were to raise the dividend sharply, I am afraid the share price would pop, making the NCIB less effective. I am in for the long haul with Urbana, and would prefer that the discount to NAV remain at 50% for a few more years so my ultimate prize will be all the richer.
And thus, my recommendation to keep the dividend at 10c this year, and to gently raise it as the NAV per share increases.