For the last 9 months, I have repeatedly seen people post on this board about how they were waiting for a take over of TBC and enjoying the dividend in the meantime.
As of noon today, however, the dividend is not there. The board cut the dividend from 48 cents to 20 cents.
I know that someone will post how twenty cents is still almost a five percent return on the current market price. Whopee! It will be an even bigger return when the stock hits $4 per share. Until they cut it out altogether.
I hope your foresight is as poor as your math. $.20/$9.00 = 2.2% ...
not too close to 5%. The real question is in my mind is how much value the new managers will bring to TBC. I'm looking forward to reading about their "execution strategy" to improve growth and profitability. I guess I'll hold for the 60 days.
With any luck, the dividend yield will not be back up to 5% by then.
You are correct about the math. Nevertheless, I think that you might do well to sell before the 60 days is up while there is still a glimmer of hope for recovery. Otherwise you may be selling out at $5 or less.