Yeh 25p for this year, then 15p for next year with possibility of extra payment if surplus cashflow.Celgar wrote:I have read a little of the announcement so far. They are going to drop the total annual dividend from about 25 pence to 15 pence. This had to happen unless they wanted to follow the example of the UK water companies and borrow billions of pounds to pay out in dividends to shareholders. RM also want to get back to or above the profit percentage they achieved in the 2017-2018 tax year which is easier said than done.
I think that is a positive move, try and stave off the shorters by retaining this years div, and then guaranteeing a reasonable return next year.
I just wonder how common it is to post the div for next year in advance?
Given the Brexit uncertainty and aftermath I would imagine that return would be attractive to pension/investment funds.
And additonally the investment in the business from shareholders point of view appears very proactive.