AWP raised the monthly distribution to 5 cents a share today. That's a 60 cent distribution annually, or an 8.16% yield. Extremely good news. Management added all the required caveats to the announcement, but they would not have done this without being 99.9% certain that they can meet this new rate and then kick it up again in a year or two. Now, since AWP trades at a significant discount to net asset value, you have a very nice investment with little worry. The stock is up only pennies so far today, a gift.
While I was happy to hear that the dividend was raised, I was a little conflicted by today's announcement because now I won't be looking forward to the end-of-year disbursement that has been paid in the past. I'm hoping that the ~50% dividend increase from $0.033 to $0.05 will be equivalent or surpass the lump payments previous received. Good way to start the week!
I think you can still look forward to a special dividend at year end. Alpine raised the monthly dividend to 60 cents a year. They were paying 39.6 cents. That is an increase of 20.4 cents. In 2009 they paid a 26.56 cent year end extra and in 2010 they paid a 30.5 cent extra. My guess is that we will get at least 10 cents extra at year end.
The new monthly rate, a 50% increase, does not preclude an extra at the end of the year. What it signifies, I think, is management's belief that they will have no difficulty in delivering the 5 cents each month. It is far more important as a stockholder to have a set annual dividend rather than a hope for a special dividend at year end. I think it is exceedingly bullish and will result in a share price of at least 8, which would amount to a 7.5% yield.