GREY:WFREF - Post by User
Post by
JohnJBondon Oct 15, 2014 11:41am
218 Views
Post# 23029720
My LRE Dividend went straight into LRE shares
My LRE Dividend went straight into LRE sharesNice to get the LRE monthly dividend at such a low share price. I was intending on spending the dividend on additional LRE shares, but didn't anticpate getting such a great deal.
When the dividend was introduced, I had mixed feelings. Nice to get some cash back (which I've used to buy additonal shares), but it ment less cash for growth, thus lower growth.
Having a dividend presents an interesing safety net for the company. Lets say LRE were to find itself with reduced cash flow from extended low oil prices, it could make up the difference, but pulling the dividend.
Pulling a dividend at a high share price is bad for the share price. However pulling the dividend when share prices are extremely low, likely won't hurt the price at all. On the contrary, pulling the dividend in such circumstances would strengthen the company and likely improve the share price.