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The CSR share price has been hammered severely since the 3 ? to - 1 share consolidation. (Just divide the current share price by 3 to see this effect).

Management should reward its loyal and persevering shareholders by maximising the final dividend paid for 2011. I am hoping for a generous fully franked final ordinary dividend of around 0.18 cents per share .

The company announced on the 7 January 2011 that the special dividend of .0913 c paid on the 2 February 2011 was independent of consideration for normal dividend payments for the 2011 financial year.

In present trading conditions, I reckon yearly dividends paid can be normalised at between .06 to .09 cents before the consolidation. This translates into 0.18 to 0.27 cents annually after consolidation.

The interim dividend already paid on 10 December 2010 was .03 cents per share (pre- consolidation). This leaves .09c to 0.18 c to be paid as a final dividend (on consolidated holdings) for 2011.

On the 7 January 2011, it was announced that the board intended to target an annual dividend payout ratio of close to 80% of net profit after tax ( before significant items), while the company remains relatively ungeared (ie debt-free). The final dividend decision is of course subject to adequate earnings results.

I am pleased the dividend reinvestment plan (DRP) has expired so existing shareholders who rely on regular dividend payments do not have to endure any further dilutions of earnings per share.

According to the CSR website, full-year profit results and the final dividend will be announced on the 11 May 2011.


Disclaimer
Please note that I am not providing valuations, advice, information, recommendations or predictions. The above statements are merely my own calculations, comments and thoughts as an ordinary shareholder without any special skills or knowledge. I absolutely disclaim any responsibility or liability whatsoever for any consequences arising from the use of my calculations, comments and thoughts expressed. If you require advice or information, you should seek the services of an appropriately qualified independent expert professional person as well as do your own proper and thorough research.