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Xinyuan Real Estate Co., Ltd. Message Board

  • jeffreybul23 jeffreybul23 Sep 23, 2012 3:09 PM Flag

    When will our one time special dividend be declared?

    After the company is done buying back the current $20 million in shares, the total share count will be closer to the 70 million mark. The company will have exceeded $9.00 a share in cash/equivilants by that time.

    It will be time for management to declare a special one time "big" dividend, or increase the current $.16 dividend to $.25 yearly, if no special one time dividend of $.25 is delcared, investors will be expecting a big increase in the quarterly dividend starting in Q1 of 2013.

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • JB,
      I never like those one-time dividends. It returns the value to shareholders, but does not increase per share value. The only purpose is to show the company is legit, but to me, this is redundant. I have full faith in this company.

    • Jeff, I think after this Re-Purchase, the total shares outstanding will be more like 65 million, so even better news.

      My understanding is that before the new Re-Purchase, there were roughly 72 million shares outstanding. If the Re-Purchase covers 7-ish million, that should leave [hang on, I gotta get my socks off to count] something like 65 million shares.

    • I am sure I have not connected all the dots.

      At 12/31/2011, ROA was 9.3 %. Investors want special dividends when the company has excess assets not earning a normal after tax return. An ROA of 9.3 % after tax return is in the consumer debt asset class. Do average investors have access to this class directly? I not getting from a long perspective how a special dividend in XIN is beneficial?

      • 2 Replies to caseysxyz
      • Dividends aren't intended to benefit the company; they're intended to benefit the shareholder.

        A Special Dividend puts the shareholder in the enviable position of choosing which of two different piles of profits to take. He can choose to either:

        1. Sell his shares on the day before the ex-dividend date, at a price much higher than the stock was trading before the Special Dividend was announce, or

        2. Hold his shares, pocket the dividend, and take his chances with the ex-dividend date price decline.

        Which of those two options to choose becomes the subject of heated message board debates. Have you never gotten to participate in one? It's the best debate that exists on #$%$ because everybody profits, the question is only which pile of profits will be bigger.

        How long have you owned XIN? It seems to me that for someone to really, honestly prefer that value in the company stay in the company rather than be added to his own net worth, you would have to be a committed to a holding the stock for quite a few years.

        Give the choice between letting the company hold my money for me or getting that value paid to me and added to my net worth, I always choose my net worth.

      • It would be a benefit for those looking for companies who are legitimate, and paying decent dividends out to investors.

        They currently have $8.26 in cash/equivilants, and there is about $2.50 per share in debts, which means they would have almost $6.00 a share extra when all debts are paid off.

        If they gave $1 of that $6 they had, it would make a dig difference to investors, and make the decision for those thinking of investing in Xinyuan.

        Sentiment: Strong Buy

3.69+0.08(+2.22%)Sep 2 4:04 PMEDT

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