Trican Well Service Ltd T.TCW

Time to bring back the semi annual dividend policy

[EstevanOutsider]

In 2011, Trican paid 5 cents semi annual dividend which based on today's outstanding sharecount, would be nearly the equivalent of what they spent in 2019-2020 on maxing NCIB. It would equate to an 18% yield, insane, I know. But the shareprice back then was $22.  It shows how disconnected valuations are and how much sentiment effects investments.

Trican could restore a 5 cent per share semi annual divy policy based on forecasts, with each period up for management review.

We know 2022 could end up as a dream scenario for Trican as the Montney will be ramping up full beastmode to fill the pipes in desperation mode for producers which means higher margins.

A 5 cent per share semi annual divy policy would send the shares SOARING.

Thoughts?

[alta0264]

I have been wondering if this could occur as well as activiity in Canadian energy picks up. A .05 semi annual dividend does not equate to a 18% yield does it or what am  I missing?

[BigWillie]

you aren't missing anything LoL, 10c a year is what, just over 5% yield. If TCW did that share price might even drop and for a good reason.  

[HugeCrane]

BigWillie is right. 10 cent dividend equates to a roughly %5 yield. I think EstevanOutsider kinda hit it on the head with the 5 cent semi annual divvy, however I don't see them bringing it back until we really see an uptick in activity and margins. I would really like to see some better Problem with companies paying dividends is once that capital is gone, it's gone. I would way rather

[EstevanOutsider]

5.3% dividend yield  I was factoring in the NCIB in my mind.  Good catch.  10 cents / 1.86 I do agree, the dividend should be paid for with FCF not dispositions. Cheers