Regal Partners Ltd V.RPL

About The Dividend.....

[InvestorSuperfan]

Yield is important for investors who like to collect dividends, but as was mentioned by another poster, it is only one of a number of factors an investor should consider before buying shares. If dividends were the main determinant, then all those canadian stocks that do not pay any dividends (e.g. TOU, GIB.A, PLB, etc.) should be worth far less than their current share price. Personally, expected future earnings growth is far more important than dividend yield. As we have just seen, it's not the dividend, it's the company's ability to pay the dividend that is key - I would have liked to have seen the sale of the Viking, large paydown of debt, and the maintenance of the full dividend, but this didn't happen. It doesn't necessarily follow that the company is worth less than it was before the dividend cut. Provided there is no foul pay afoot, all they appear to be doing is reducing the amount they pay shareholders directly and using the savings to pay for capex / other expenditures.