RE:RE:RE:RE:Under valuedSunsetGrill wrote: Dude - they have a >90% payout ratio. You dont think that makes a few managers a bit nervous (he ll it makes me nervous). One thing goes wrong and Kaboom. Please dont say you think AD is a sleep at night holding over a bank (which increases divy yr after yr by as much as 10%) AD divy increase <2% over 4 yrs likely).
They better get growing or they are in big trouble
If you don't like Alaris, maybe you should just move on...
Alaris pays most of its earnings in dividends, that's what they do. That's why their yield is 9%+ and not 4.5%. Hence their payout is high (imagine that... it's why they created Alaris).
Just like I posted, they have a better growth profile from built-in collar growths to their deals, extra profit on exits, etc. You may not believe it, so just don't invest in it and move on.
As to the divy growth, you're right, the lower the payout, the easier it is to increase, but that's like math 101... You may disagree that Alaris has better growth profile at this point than the banks (and if you do, I suspect you're not a shareholder and that's fine) but unlike you I don't spend my days on stocks that I don't believe in. It's pretty easy to come up with drivel on any stock at all.
As to growth figures... I sure hope they hit the growth numbers cause I want share price appreciation, but to say otherwise they're in "big problems" is just baloney. They have got over the hurdles, they've got about $50M (USD) waiting to be deployed this year that's already signed, their major investments don't have other creditors meaning they have priority (on $) if anything goes wrong, etc. The shares are trading at an historical low in terms of share price / revenue per share.