Will the market sell the dividend news? At these prices, the dividend isn't going to blow people's minds or anything. I'm expecting $0.12 and hoping for $0.16 for an annual total, which should be a nice 2.5-4.5% yield depending on where the price is.
I'm wondering whether or not I want to be holding through the dividend announcement.
Apparently, a lot of people are buying more before the announcement. Look at the stock performance in the last few days with heavy volume. That's the result of heavy buying, and this is all happened before the announcement.
The dividend isn't the reason the stock is moving people. They paid out 10 last year and probably 12 this year. The reason is because Wall Street finally recognizes value here the P/E forward is 2.5 to 3 currently and they have a great balance sheet.
Also, chinese stocks have had a nice start to 2012. Past 2 years china took a beating. It's the perfect storm for this stock. If this suprises you, you have seen nothing yet. This could hit 15 to 20 in 2 years based purely on P/E and consistent earnings.
XIN will have it's down days too, but the long term trend is shifting and could stay that way now for a long time. The sector also may run for awhile. Enjoy it longs.
I thought about this too. I'm thinking they won't sell the news on the dividend announcement. I don't think this stock is running up because of the income stream investors are going to get from the dividend, instead, this all ties into the legitimacy of the company. The dividends are running up the PPS because it validates the company as real, therefore, bringing it closer to a normal valuation.