RE:RE:RE:RE:VET's low share float is KEY for the divy to come backgeemonet wrote
Agreed.
it would be very nice to see a NCIB notice come across the news headlines for this company. Buy back 16 million shares while the price is low. Complete the bid and bring back the .23 a month div.
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To pay a 23 cent per month dividend VET would have to pay out nearly all their free cashflow. Doing that over several years in the past is what made them have to totally suspend the dividend and could have bankrupted the company. Anyone expecting that big of a dividend will likely be dissapointed unless oil goes higher and stays there for years which could happen.
Personally i would like to see a small dividend maybe early next year of 5 cents per month. That would give some income to investors and still leave VET with $350 million a year in cashflow to reduce more debt, share buyback and acquisitions etc. In a couple more years if oil prices allow they could then increase the dividend some more.
By doing this they can pay a reasonable dividend and still strengthen the company over time which will eventually result in a higher shareprice and higher dividends in the years to come.