Share price vs divi - the contradictory relationsh The is a direct relationship between share price and dividend amount/yield.
I understand that to be competitive the dividend should yield 7% ( e.g. CPR is currently 7.7%). At 30 cents - the reported target number - the share price would be $4.28...so
As the share price increases the divi gets less competitive or the company is encouraged to push the divi higher to support the price on announcement. This of course pushes payout higher, potentially producing a situation like Renegrade where the divi cannot be sustained.
The company would like the share price to reach back to Nav at $8.20 - but the model seems to limit the ability to get there until the divi is increased.
Perhaps they could break the mold, stick with 30 cents, and announce a 5% or 6% dividend..on a $5 to $6 share price. I could handle that. Then they have room to grow cash flow and gradually increase dividend as share price increases back toward $11.