Based on the press release today, it looks like 2014 dividends will be in the 50-60 cent range - not bad.
I did not invest for the dividend and would prefer to see a higher stock price (prefer both, of course).
Management has done a really poor job with the financial machinations of the company - issuing too much stock to pay off the preferreds.instead of re-financing the preferreds into debt or keep as preferred but buy it down from excess cash $25M per year and eliminate it over 8-10 years while keeping the share count flat and getting FFO into the $1.25-$1.40 range and getting the stock price to $16-$18.
Now, when the stock price is near 5% of an all-time high, management is buying back stock instead of adding on another acquisition and kicking up the EPS another 15 cents or so.
Management said they have zero interest in the dividend beyond what is required by law. "our view is that as a capital-intensive company with fairly specific portfolio and balance sheet objectives, that paying out more than the required amount for dividends is probably ill-advised"
So let me translate. Despite our competitors returning cash to their shareholders, we intend to continue to pay ourselves fat salaries and bonuses and let shareholders suffer. If it weren't for the requirement that we pay out earnings we'd not pay a cent!
This group is enriching themselves at the expense of shareholders - and have been doing so for years. They claimed on the conference call that they have done a great job for shareholders over the past couple of years...... ignoring that they themselves ran the company into the ground and made some of the dumbest business decisions possible during that time!! Meanwhile shareholders have seen their equity value plummet, dividends eliminated, and watched executives continue to receive generous pay packages.
I've only done back of the envelope calculations but something between .10 and .15 per quarter next year is about what shareholders can expect. I wasn't clear in understanding if they will pay say .11 a quarter and then whatever is required at the end of the year or if they will continue the .05 and then make a larger payment. If its the latter they are in essence now borrowing from shareholders at a 0% coupon rate!