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.
One more quarter of an inflated dividend, I believe. But with the three recharters in May, they will have no choice but to cut the dividend significantly after that.
The wild card is if and when (and at what price) the next offering comes.
Some speculators buying today, but I'm not that bold.
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.