A good question by Iteh and a good answer by traderookie...
Also remember that there is a cost to equity capital and at the moment the cost of that equity capital is greater than 10%. If you don't want your dividends then reinvest them into NIC.
Given the discounted valuation that NIC has I'd say that sovereign risk and single customer risk plays a big part of things. Paying a divident helps assure investors that there is actual real profit and cash flow there to be distributed.
(Oh and good luck waiting for franked dividends for NIC!)
Ann: Share Placement and Collaboration Agreement, ENC Expansion, page-23
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Last
83.0¢ |
Change
0.005(0.61%) |
Mkt cap ! $3.557B | |||
| Open | High | Low | Value | Volume |
| 84.0¢ | 84.5¢ | 82.5¢ | $5.094M | 6.114M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 68103 | 83.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 83.5¢ | 157856 | 7 |
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| Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
| NIC (ASX) Chart |