Like John, I expect that BDR will pay a second half dividend. I expect it will be a 1c dividend. All the company commentary has been around a 'sustainable dividend program'. The expectation that they are generating is that the current dividend is not a one off but the beginning of a long term policy of paying regular dividends.
I expect that it will only be a 1c dividend. Even if above expectation mine and plant performance and the current currency movements with a weak BRL and AUD generate enough surplus cash to enable a larger dividend, I think they will prefer to use the surplus to pay down debt faster than budgeted. In my opinion, they will be wary of paying larger dividends in good times because of the expectation generated and consequent share price punishment of cutting the dividends back when times are not so good.
Cheers,
Tim.
BDR Price at posting:
25.2¢ Sentiment: Buy Disclosure: Held
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