this is a great way to spend some of it's cash
And there you go with another 'if'. You also forget the 304m
in debt plus the payables, and a housing market that is
readjusting it's expectations. Maybe you need to readjust
your expectations. You also forget if they were in the US
their figures might be something you 'could' depend on.
I am being realistic. If XIN was a company in the US, doing as well as they are, they'd be over $20.00 a share.
After the acquisition, they still have 450 million in cash, and expecting to make $.40+ per share each quarter of 2012. A $.10 dividend is really not unrealistic. Also, with buying back shares, each quarter their dividend expense would be less, and less.
$.10 a quarter would come out to about 28 million over the year. They'd still have plenty of money to buy more land.
They can afford to pay out $28 million a year in dividends. They have $450 million in cash, and are expected to make .40+ each quarter of 2012. They wouldn't even have to dip into their existing cash.
It would not be 20% after announcing a dividend. If XIN was $10.00 a share, $.40 would be a 4% dividend, and that is reasonable.