RE:Gamehost... slow-playing a pair of Aces malx1 wrote: How does one double their dividend?......................... Slowly
When the next dividend rolls into shareholders' hands, it will mark 24 months since they have last received a dividend from this corporation.
At .03/mo, the dividend is currently set for .36/yr.
We can conclude that the forward payout ratio is close to 40% if we estimate .88/yr of free cash flow with restrictions removed and GP upgrades completed.
BOD and management have set up something special here with a half-dividend. Much like the E&P companies who are allocating free cash flow to share buybacks, debt reduction and dividends; Gamehost is following suit!
By holding the dividend back to .36/yr for time being, GH can continue to focus on its NCIB and chip away at debt.
Here's a round-number layout of what the next 2yrs could look like:
Free cash flow = $20mm/yr
Dividends = $8mm/yr
NCIB and debt reduction = $12mm/yr
Follow this strategy for a few years, you could end up with $300mm market cap, $30mm net debt, share count of 21mm.
Once completed, dividend could be doubled from .36 to .72 and still be close to an 80% payout ratio.
Alternatively, you could take the slower approach with dividend:
2022 = .36/yr
2023 = .48/yr
2024 = .60/yr
2025 = .72/yr
Company says they are looking at a bright future for Alberta. Yup, haven't seen this optimism since 2004-2006.
I think our dividend guy, Kasking, may offer some shares at $20 one of these days...
2025 maybe
Kasking asked that I re-post this Beauty from
March 2022..................................................
2.5yrs later, things going according to PLAN.
"How does one double their dividend?......................... Slowly
When the next dividend rolls into shareholders' hands, it will mark 24 months since they have last received a dividend from this corporation.
At $0.03/mo, the dividend is currently set for $0.36/yr.
We can conclude that the forward payout ratio is close to 40% if we estimate $0.88/yr of free cash flow with restrictions removed and GP upgrades completed.
BOD and management have set up something special here with a half-dividend. Much like the E&P companies who are allocating free cash flow to share buybacks, debt reduction and dividends; Gamehost is following suit!
By holding the dividend back to $0.36/yr for time being, GH can continue to focus on its NCIB and chip away at debt.
Here's a round-number layout of what the next 2yrs could look like:
Free cash flow = $20mm/yr
Dividends = $8mm/yr
NCIB and debt reduction = $12mm/yr
Follow this strategy for a few years, you could end up with $300mm market cap, $30mm net debt, share count of 21mm.
Once completed, dividend could be doubled from $0.36 to $0.72 and still be close to an 80% payout ratio.
Alternatively, you could take the slower approach with dividend:
2022 = $0.36/yr
2023 = $0.48/yr
2024 = $0.60/yr
2025 = $0.72/yr
Company says they are looking at a bright future for Alberta. Yup, haven't seen this optimism since 2004-2006.
I think our dividend guy, Kasking, may offer some shares at $20 one of these days...
2025 maybe"