Kasking the Dividend guy - he knows what's ahead for GHA quick comment on GH's dividend.
After the acquisition of remaining 9% of Deerfoot, the business will be carrying total debt in the high $50mm range.
With positive business momentum we see today, the operations can earn excess capital to fund:
1. Grande Prairie renovations
2. NCIB stock buybacks
3. Accelerated debt reduction
Focus on #3
Juggling these 3 bowling pins, I think that GH will be able to reduce debt back near the $50mm mark over the next 9-15 months, depending on their choices of capital allocation.
Once debt is in check, at or near $50mm, and major renovations are completed, and NCIB activity is slow or subdued, then business is likely ready for a material increase of dividend.
Would not be shocked to see $0.36/yr be adjusted to, or near, the $0.72/yr mark.
This projection is based on Alberta economy staying on its current trajectory and Kasking staying out of the Deerfoot high-limit rooms.
I think for most of us patient and conservative investors, the next 12-18 months will be worth the wait.
Stick around. Just because you hit a jackpot doesn't mean you stop placing bets.
This machine is low-risk with good upside.
Keep betting on GH shares.