RE: McDep.comI realize the company is no longer a trust. However that in and of itself does not change the dividend policy. To the contrary management has stated on numerous occassions that it intends to pursue a variable dividend policy priedicated on results and expectations.
The most recent presentation on July 6th stated:
COS provides prudent and disciplined cash management.
Intend to continue paying a quarterly dividend with the amount varying
depending largely on crude oil prices and the investment cycle of Syncrude’s projects
Irrespective of timing, we maintain the discipline of paying out the cash we do
not need in our business.
Our variable dividend strategy is an important distinction from other companies
that might pay a low but predictable dividend. I believe our approach serves
shareholders better over the long term.
As for McDep, he stated the following on the report dated 4-29-11
"It is a relief to see that management of buy-recommended Canadian Oil Sands Limited (COSWF) has released a wider sliver of its river of cash flow as a distribution to the owners of the company."
I beleive McDep simply takes the most recent dividend and assumes it will stay the same, that is until management changes it.
I agree. The question remains, why retain so much cash?