Ann: Highlights of Half Yearly Report December 20, page-12

re: Ann: Highlights of Half Yearly Report Dec... Kermit345

firstly, i am no expert.

secondly, i was personally surprised at the dividend amount only based on future dividend payouts mentioned on other threads for neighboring companies to MML. that is all.

thirdly, i'd say what CPDLC said in the post before me, "I guess it all depends on your time horizons!"


September 2011 dividend was 5 cents. I'll use a base case of 10,000 shares. Around that time the share price was $8. So buying shares at that time would cost you $80,000 (ignoring brokerage). 5 cents dividend on 10,000 shares gives you $500. That's only an 0.6% return on your capital.

So, if you held on to your shares, you see the share price halve and now recover back to $6. So, if you are waiting in dividends for another 5cents to give you another $500 on your 10,000 shares you just lost $20,000 of your capital. Granted if you are a long term holder that wouldn't worry you as based on your post the share price should go up in the future.

But, if a new Investor decided to buy in towards the low a few weeks ago, say $5 for example, 10,000 shares that is $50,000. now, this 5 cents divi gives $500 and the return on your investment is 1%. This guy gets the better deal as he gets his divi and makes $10,000 as the share price rises to $6.

so "it all depends on your time horizons" and that is only my simple view.