….that’s the scenario that should have happened but it has not...

….that’s the scenario that should have happened but it has not worked. Why? Firstly, the last share buy back they never completed and over that period of time the share price has languished in the gutter. Well they could have continued buying but didn’t! I wonder why? Buying businesses that don’t add value to the shareholders. If they paid the dividends out to shareholders then they could invest that money elsewhere or even if they thought SWM was a good buy then they could buy more shares? Then of course if other investors thought the dividend stream was stable they could too invest in the company. Maybe potentially increasing the share price? There are still investors who buy for a stable dividend stream.

I was lucky when I sold my shares just as the share price was heading down to get out with a reasonable profit all those years ago but if I held I would have been under water big time.

I have brought a small parcel of shares and will see how it goes. If they announce a plan to start paying dividends I will be much more confident to start investing more but in the meantime I will wait.

SWM up until they stopped paying dividends was at least as I recall always paying dividends. In fact it was Macquarie that had suggested that it looked as if the company was about to start paying dividends a few years ago and suggested that this would help the share price but the company didn’t go that way. After that the shares continued their decline. If only they did.

cheers