Hi mate.
I understand what you are saying. But don't agree on everything.
I agree the management influence is fantastic. It is why the company is so well run. I am also a big fan of lyl they have a history of cash generation which proves they are a business throwing off cash. And I agree they have paid dividends.
However they have 50m to 100m cash sitting in their bank accounts. So they have not paid out everything in dividends not even by a long way. This cash shoes the company is conservatively run so it is a good thing.
This cash is profits and has had tax paid on it at the company tax rate which is much lower than the top personal tax rate.
For a company like BHP it makes sense to pay dividends because a lot of their ownership is super funds paying 15 percent tax. For a company where the owners is mostly individuals it does not make sense because the personal tax rate is higher than the company tax rate. So the logic behind a company paying dividends is driven by the tax system. That is why American companies pay less dividends that Australian companies because their tax system is different.
I agree the chairman is only paid a small fee but if you look at the dividends he receives it would out him in the top tax bracket. And the executive directors do receive high salaries plus dividends.
I doubt that Lyco will be paying out a huge special dividend even though it has more cash on its balance sheet than it needs. Personally I would like to see them do a buyback at this low share price.
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$13.68 |
Change
-0.020(0.15%) |
Mkt cap ! $544.4M |
Open | High | Low | Value | Volume |
$13.67 | $13.68 | $13.67 | $20.45K | 1.496K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 162 | $13.65 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$13.80 | 1108 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 260 | 13.650 |
2 | 762 | 13.640 |
1 | 750 | 13.610 |
1 | 289 | 13.600 |
1 | 673 | 13.570 |
Price($) | Vol. | No. |
---|---|---|
13.780 | 961 | 4 |
13.790 | 407 | 2 |
13.800 | 554 | 2 |
13.810 | 31 | 1 |
13.820 | 880 | 2 |
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