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!)
A good question by Iteh and a good answer by traderookie...Also...
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Last
78.0¢ |
Change
0.025(3.31%) |
Mkt cap ! $3.342B | |||
| Open | High | Low | Value | Volume |
| 77.0¢ | 78.3¢ | 75.5¢ | $5.275M | 6.836M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 46551 | 77.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 78.0¢ | 93748 | 7 |
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| Last trade - 16.10pm 09/08/2024 (20 minute delay) ? |
| NIC (ASX) Chart |