RE:Divi/valuationSuppe11 wrote: I don't understand your talk about divis. Is it smart, to raise debt, for paying a dividend ? I think you agree, that this would be stupid. There's no difference...it's not smart to pay a Divi if you have debt.
The whole company is less risky in downturns without debt and they pay no interest then. It's not the missing divi, but the debt, what held this company back.
What are you talking about? I never said raise debt to pay a divi...!? of course that's dumb. And yes, the debt is what held this one back, they took on too much of it.
But to say it's not smart to pay a divi with debt then you should go and tell that to 99% of the producers and any other company out there for that matter that pay a divi and carry debt. Of course a divi can be paid while carrying debt but the debt needs to be at a manageable level not the source for a dividend.