Verde Agritech Ltd T.NPK

A 2.1% dividend yield for 2022?

[PedroPistacio]

The announcement of a minimum CAD$10m payment to shareholders from the 2022 financial year suggests $0.185 of dividend per share based on 54m shares in issue. If the payout ratio is maintained in 2023 and beyond and Verde is able to hit its targets of 10m tonnes and beyond, then this dividend would grow very nicely. But definitely DYOR because my math could be way out! GLTA. Happy to be corrected.

[Celt1967]

Pedro, purely out of curiosity and my own learning, how did you calculate the 0.185 figure? Thanks in advance.

[laurencelefou]

$10,000,000 divided by the number of oustanding shares of  50,581,619 = 1.977 %.   The CEO has mentionned is preference for  buying back shares.  The Board will eventually decide on what position to take, buy back shares, issue a dividend, a mix of both. or let the cash accumulate.

[KirklandX]

I think there is a slight missinderstanding here.  To get a company's yield, you divide the div by the market cap of the Co. So in this case $10m / $467m. Equally a yield of 2.14%.  I expect the shares will go up on this, meaning the yield will compress. But a great start. 

[PedroPistacio]

Same. 

[laurencelefou]

You are right, sorry about that.

[laurencelefou]

$10,000,000 in dividend 50,581,619 shares outstanding $10,000,000 / 50,581,619 = $0.1977 Share price $9.50 $0.1977 / $9.50  = 2.08%

[KirklandX]

I think we're both right!!!! Exciting times!!!

[rodrabal]

One think I really like about the company management,is there ultra ultra conservative numbers . There should be no surprises to the downside. Any surprises should be to the upside!!!!!!!!!!! Awesome news. Long and strong. 

[PedroPistacio]

Indeed. It's a mystery to me where the market is finding sellers to buy from. Did someone say a while back that there is a management presentation tomorrow? PS. I wonder what Mr Kaiser has to say.....

[GeneralAladeen]

I'll tell you what Mr Kaiser (KaiserResearch) already said. Projecting out to 2023, his price target for 2023 are $58 / share and as high as $94 / share- potash price depending. Pretty sure he's happy about a18.5c dividend;-) 

[PedroPistacio]

Simply CAD$10,000,000 divided by 54,000,000 shares, giving 18.5 cents per share of income. The statement states a minimum, so ho knows, but maybe 20 cents. Roll on the quarterly results which will hopefully prove up the company's expectations. 

[Abruzz0]

IMO, you are all missing the most critical part of this release: Verde will self-finance Plant 3 PLUS keep a tidy > $30 million in reserve.  The amount of dividend pales in light of a dilution free expansion to over 10x what Verde expects to produce for 2022 (which is already enough to pay dividends ). I've been invested in Nutrien for many years and remember the many capital

[MuttleyKnows]

Friends. The news release was a surprise. A nice surprise but a surprise. I was still buying under $10 but it now looks like this opportunity has now passed.   Nothing is ever a sure thing but this stock looks like it is going to the moon in the next few years. Question for the longs is to chase the price or sit and wait to buy the dips. FOMO forced me into buying more yesterday but