For an emerging growth company, best use of cash is to fund growth at say 50% to 70% of earnings retained. Remainder paid as dividends.
Then as growth of NPAT progressively yields fruit then just consistently grow dividends.
In case of SOL dividend growth compounded at 9.6% pa. Imagine if ADN achieved the same or better?! They have a diversified high-margin strategy to pull it off.
Other examples below are BKW and ARB.
General comments/chat, page-14738
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