HONG KONG, CHINA--(Marketwire -02/03/12)- Seaspan Corporation (NYSE: SSW - News) announced today that the Company's Board of Directors has declared a quarterly dividend of $0.1875 per common share for the three months ended December 31, 2011. The dividend will be paid on February 22, 2012 to all shareholders of record as of February 13, 2012.
that word 'progressive' is a bit mysterious though...don't remember if it was defined...
my guess is that they want to pay out the same percentage of free cash flow as it progressively grows
I doubt it means they will simply ramp up the dividend by any fixed percentage amount in isolation from other metrics. I'd be quite happy with a bump of $0.15, i.e., to $0.90 a year. Of course I'd prefer to see your numbers, though I intend to hold either way. What would really be great is if they would concurrently announce some kind of additional ongoing share repurchase.
This will be the fourth quarterly dividend of $0.1875 after the 50% boost from $0.125. If the pattern of raising the dividend once per year holds, we will get another boost three months from now, i.e., around May 1st. Will be very interesting to see what the rate of increase turns out to be. Solid dividend "achievers" tend to raise the dividend about 10% per year. I think we are expecting something more along the lines of a 33% boost to $0.25 per quarter. However, the buyback was a very effective return of value to shareholders, so there might be some discussion among the directors that a lower rate of dividend increase is warranted. However, on the other side of the argument is the fact that four insiders now own more than 50% of the common, and may wish to benefit from as large a payout as possible. Either way it will be interesting.
Last big dividend reduction doubled my shares after it was announced; stock price took a huge hit and it paid off for me in the long run. Good things come to people who are patient. Let them announce a dividend reduction and I will take it to the bank.