dividend, cr or nada, page-33

Firi8269,

We have had 2 bad years in a row. This year, we have had sandy, worst drought for US crops in history, depressed interest rates, high AUD, and regulator intervention in reducing margins on force placed insurance as key drivers of a disappointing result. I also think our new CEO is re- adjusting their book to ensure no more downgrade surprises will pop up which is the norm when new mngt comes in.

I am predicting a dividend of only 10 cents a share for the FY 12 in keeping with it's 70% dividend payout ratio.

Effectively, the shareholder takes the hit for the reduced earnings rather than the balance sheet which should hold us in good stead when the operating environment improves. This probably explains why the share price is so low as the market consensus is similar to my view.