Dividends were paid the same year as a capital raising was made - why ask shareholders for money just to hand it back to them as a dividend - except maybe, to make the share price seem more attractive. Also a companies profit will naturally increase if it has made an acquisition, take Wesfarmers as an example, in 2008 after they purchased Coles - "The directors of Wesfarmers Ltd today announced a record profit of $601 million for the half year ended 31 Dec 2007, an increase of $209 million or 53.3 percent......
Of course profits increase they just purchased Coles!
It's the same story over and over again where companies are able to continually show increases in profits due only to the fact that the company has grown by borrowing money through financial institutions or shareholders to buy companies to add to their portfolios. Sometimes it pays of but in the majority of cases the company is left with increased debt and growing intangible assets that are eventually written off destroying the shareholders equity.
I'm not saying that CSV isn't of value at this price or has made poor acquisitions but you need to look deeper than just looking to see if a company is paying dividends or making a profit. Anybody can make a profit and pay dividends if they borrow enough.
CSV Price at posting:
46.0¢ Sentiment: None Disclosure: Not Held
