RE:RE:RE:RE:RE:STRONG RESULTSBrio, you seem to be poo-pooing the dividend, why? WE are collectively the owners of GCM. GCM is no different than any other enterprise - they are in business to generate a profit for their shareholders. Now, given profits, what should be done with them? There are two courses of actiion, either retain them for growth or distribute them to the owners.
Far too often, we see companies growing for growth's sake. OK, so, what is the end game there? The company continue to grow their Balance Sheet and gets ever larger. Growth for growth's sake leads to only ONE option available for shareholders if they hope to ever achieve a positive end result from their investment: capital gains.
So, one sells an ever growing company to another investors........who hold onto the company hoping to observe a continuance of Balance Sheet growth. This leads to a cycle whereby investors are counting on the greater fool's theory: they buy only in hopes to sell to the next fool down the line.
GCM has at least had the foresight to reward company owners by returning THEIR profits back to them. Of course, the dividend can't get too high that it stifles growth, for the primary purpose of growth is to increase the potential for greater dividends in the future. It is a fine balancing act between dividend distribution and earnings retention to fuel growth.
I am all for GCM buying back shares at depressed prices as we currently see. That being said, it is basically a death knell for any company to decrease or suspend their dividends. You indicate that other dividend paying companies such as GORO have been stuck in the doldrums, but there are likely other factors at play that suppress those issuers's share prices. There is no reason, given ample cash flow, that GCM couldn't maintain or even increase their dividend, fund growth AND buy back shares all at the same time.