RE: The Real ReasonStripping the company of all the cash makes for a poorly movtivated management team.
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Not really. With the share price hovering between $4 and $5 it was clear that the stock market was not going to pay the proper price for the earnings that ACQ generates, year after year. Soooo....give it back to the shareholders. If it is not needed for growth, and let them put it to work.
ACQ actually generates about $ 0.80 per share of free cash flow, so they are just paying out about 1/2 that. It's not needed, so here you go. Seems like the right move to me.
Now as I see it, after a couple of quarters of $ 0.10 dividends, I am sure investors would be pleased with a yield in the range of 6.5% for a simple company like AutoCanada. That yield puts the share price above $6.00.