STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

RE:RE:RE:News

[slimjim11]

Hi AI42, Yes, they have new high-end busses to buy or lease.  That expense will have been budgeted in the contract bid. Winning the contract, they now proceed to fulfill their commitments, and are contractually guarenteed of their cash flow over the life of the contract.  Dividend increases come as certainty of increasing cash flows give the board confidence to pay out more in a dividend.  That certainty of increasing cash flows from this new contract is now contractually committed.  It's only a question of when, not if, the board decides to raise the dividend.