LOAN Declares Four Quarterly Dividends of $0.01 Per Share
Manhattan Bridge Capital, Inc. Declares Four Quarterly Dividends of $0.01 Per Share 05/02 06:00 AM
May 2, 2013 -- Manhattan Bridge Capital, Inc. announced today that it would pay a $0.01 per share dividend to shareholders of record on May 15, 2013, August 15, 2013, November 15, 2013 and February 14, 2014 with pay dates on May 20, 2013, August 20, 2013, November 20, 2013 and February 20, 2014.
Share buybacks would have been far better use of capital than a dividend, both pre-tax and after-tax. I'm going to give the Board the benefit of the doubt, that they looked at a share buyback and concluded not enough illiquid stock could be bought back.
They actually did buy some shares back last quarter. Volume is too low to buy big amounts.
Dividend brings eyeballs to the story which is good. But, I would have preferred they make it permanent so we can count on it going forward. 4 one time dividends are no better than a 1 time4 cent dividend.
I'll take it and combined with the good quarter might bring the stock up to a more reasonable valuation but if Im looking to hold this as an income stock for the long term, Id want a permanent dividend.