Ann: Fonterra updates on Q3, Milk Price and capital return, page-6

I'm going to have a think-out-loud about what the dividend might be. They have said 2023 forecast normalised earnings are NZ$0.65-0.80 per share (I can't see why they have such a broad range as they state elsewhere in the report that 95% of milk is contracted for the season). Lets take a conservative approach and call it $0.65. Last season it was $0.28, and they paid out a dividend of $0.20, or the equivalent of 71% of the EPS. Following the same 71% of EPS gives a dividend of NZ$0.46, which at the current price gives a yield of about 13%. A NZ0.46 per share dividend would be the highest dividend ever paid, so you'd think it should correspond to the highest all time share price, but we're a long way off that.