not sure whether or not I totally agree with you. I agree that the dividend is an important criteria in evaluation the value of the company, and the importance of dividend will depend on your own circumstances.
This might be niave, but alternatively, at worst, retained profits should increase the value of a company by the value of the retained profit. And if management is worth their paycheck, they should be putting that money to as good use, if not better than I can.
I am trying to work out a good rule for my investment strategy, but any investment that is not forecast returning my mortgate rate + 5% (after tax) is currently not worth the risk. In my case, with huge losses to write off and a mortgage that will be paid off in the next 12 months, capital gain is of more value to me than dividends.
Would be happy to hear contra arguments. With huge losses to recover, I have a lot to learn.
QBE Price at posting:
$13.44 Sentiment: Hold Disclosure: Held
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