Why would BBI pay out 10c in dividends exactly ? If they actually have the money to do so, they would be wiser to spend this money on something else, like paying down debt, or an on-market buy back.
I don't believe they have the money. This company has consistently paid out(much) more in dividends than they have earn't, for the last 7-8 years. They made a loss for the last financial year. The final distribution was slashed from 7.25c to 2.5c.
It all adds up to a reduced or possibly no dividend for FY09
To put it bluntly they cant afford it.
BBI Price at posting:
20.0¢ Sentiment: None Disclosure: Held
