Is 4% increase enough of a dividend boost to keep investors happy?...
BS Just made the point that inflation and interest rate rises increase the expectations on ALA to increase the dividend by more than their earlier dividend increase.
Its a tricky conclusion to draw for sure. On the one hand if I see a company pay down a lot of debt faster than I expected, that boosts my confidence that future years will show more retained earnings and allow for larger dividend increases down the road.
If I see very high earnings beyond my expectations and are pleased with announced plans to grow the companies towards renewable infrastructure I might be very pleased.
The old investors in ALA were all about the dividend but I think less so now. There is a group that is keen on the midsteam growth as well.
Overall I think it depends on "The Story" the CEO tells and if it provides a convincing rationale for the future. The key to it all will be significant increases in EPS fo rthe full year and shareholders buying the fac tthat growth will continue to be strong. Shareholders will hav ean eye to this soft quarter but be more focussed on where the overall year will come out plus future prospects. A surprise dividend could be a boost but it sure won't be the only factor.. Long and strong.. Cheers