Appears cash flow for the qt was a little over $3M. Are they taking it out of their cash that they need to live on or borrowing it??? I don't understand how they can support a div anywhere close to that.
Am Ithe only one who noticed that last year's (2012) div was 31% "return of capital"? and that this lowers your cost basis by that $ amount, so if/when we sell we get to pay a higher capital gain tax..... My understanding is that the "real" divdidend was 14.7% (68% of the 21.6% we see posted everywhere).....
I'm still trying to find info on how "return of capital" is an advantageous investing strategy -- anyone know?
you are paying taxes one way or anther. meaning if you jump in and out before and after dividends than you pay 10% more in taxes than if you hold for the long term. I hate paying taxes, the only tihing worse than paying taxes is not paying taxes. Meaning if you don"t pay taxes than you are making any money. I read an artical can't remember who from but it said that basically the share holders are being paid to wait till a recovery in day rates happens and the company can then go into growth mode.
It's funny, I came to the message board to ask the same thing. The dividend has to be cut, which must be why the stock is dropping like a rock. I could be (and probably am) wrong but the numbers are the numbers.
in the mean time, you've got Reuters running a story about a company priced at 70% of book value and paying a 22% divi. Pay no mind to a more detailed story like the Seeking Alpha that gets behind the numbers and considers the sustainability of the numbers.