Post by
Commonguy on Feb 13, 2022 10:07am
Revisiting a reinstatement of a dividend at Home Capital
HCG has purchased back 300 million in shares in order to return value to its shareholders at a price of $43.50 a share(December 2021). The share price is currently $37.87 and I just want to state that I am not an HCG basher or short seller of the stock. HCG had paid a dividend in the past and long term investors bought in to HCG based on that premise. Long term investors did not solely buy HCG based on a dividend but also for share price appreciation. It is now time to reinstate the dividend and attract new investors to move the needle in the share price. That is just my view and others responding with more buybacks are accretive just do not get it. The dividend does matter and this is not a company that did not pay one. IT IS TIME !!!!
Comment by
caretired1 on Feb 13, 2022 3:44pm
They can/should do both. Another $150 million for another cheap SIb at these prices and after that divvy right away
Comment by
canader on Feb 13, 2022 8:45pm
NCIB + Divvy would be nice. Not holding by breath for Divvy though. They have been stingy on reinstating the Divvy for the last five years. We'll see
Comment by
Moneyisgood on Feb 14, 2022 5:05am
Don't have problem with ncib but not above BV. Start a dividend of $3-4a share and use rest 400 mil they have in excess cash to grow business. They have bought back enough shares. Ifs time attract new shareholders who want income.
Comment by
Commonguy on Feb 14, 2022 8:23am
I agree with all you said but a reasonable sustainable dividend should be reinstated/started.
Comment by
Moneyisgood on Feb 14, 2022 11:18am
They have $400 mil in excess cash.And will earn at least 200 mil this year. They don't seem to know what to do with it at the moment. And stock should be around 60 bucks. Don't know whats lacking except a dividend $$ that will get them there. Thanks :)