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Xinyuan Real Estate Co., Ltd. Message Board

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  • staccani staccani Aug 15, 2012 11:50 AM Flag

    Question about the dividend

    I think that XIN priority at this stage is to use availaible cash to fuel growth and to buy back shares. Dividens from a company prespective is 'lost' money. Also the CEO is the main shareholder, I do not think he personally needs to boost dividens as the current % on such big numbers of shares mean millions USD per year. I want to be in XIN because of capital gains prospects (1,000% - 5,000% potential in a few years) not because of future dividends, even if they were 10% p.a, small money compared to potential capital gains

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    • Staccani,

      I'm all for growth too, but what management does with dividends is for the shareholders. Increasing the dividend after reducing shares is a great way to reward those shareholders that have stuck by the company. It gives you incentive to hold on, just in case they repeat the process again.
      Dividends solidy a stock. There's a level of financial respect that's given to a stock that pays back their shareholders in cash.

      Trust me when I say, increasing dividends over time will have a profound positive effect on the stock price, so I'm all for it!

    • While I agree with what you say, I'm not used to getting paid to wait! That's what I'm pointing out.

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