nst - a positively geared investment, page-8

Hi all

Agree that maybe my previous assumption is somewhat too good on the upside. I probably should work on just 3% which is already a good outcome. However if Bill's target is 3% yield, is this based on a fair value of say $1.50 (his exit point) which would still put the yield at somewhere around 4% plus at the current price. Im sure Bill will target his dividend yield policy based on fundamental value, not on the current sentiment of the stock. Just some food for thought !!!!!!
I still have a gut feel that an interim dividend is coming but agree maybe a smaller amount of say 1 cent is more realistic. Anyway we will find out in a few days !!!!!
I also agree if you use the margin loans rate of around 8 or 8.5% then this investment would not be positively geared, however for those who can access lines of credit against say investment property, then the current interest rate is 5.8%. Obviously depends on your circumstances !!!