Biggest Dividend Yield on ASX

I haven't titled this thread as an attempt to up ramp SMN but rather to draw attention to an interesting angle of the stock which hasn't been discussed at length yet.


Management have stated their desire that SMN reach the status of the "highest dividend stock on the ASX". I'm interested to know exactly what territory that would put us into in terms of yield percentages. To the best of my limited knowledge most of the better yielding stocks pay in the 5-8% (rough estimate with no research done to back it up) but I would be interested in other people's input in this area.

What are the top yielding stocks paying in terms of yearly dividend anyway ?

The reason it's of interest is the fact that SMN down the road a few years is likely to be a company with massive revenue and comparatively minimal expenses. The costs of production of each sensor is probably in the tens to low hundreds of dollars (pure guesswork is $50-$200) and the asking price has been variously quoted in the low thousands of dollars ($1000 - $3000). That's potentially a markup of between 400% and 5900%.

Similarly the eventual full licencing fees in 6-7 years ($US 10-15 million per tier 1) is massive revenue with basically minimal expenditure aside from wages and legals to oversee contracts etc. The cash coming in annually COULD potentially be in the hundreds of millions of dollars while the outgoings are likely in the very low millions of dollars.Unless SMN has some intention to somehow expand into other areas via takeovers etc there's likely to be a sea of spare cash in the coffers. Dividends from this sea of cash could be humongous.

My question is firstly...have I missed something? And secondly... just how large could a declared dividend get in a company with massive revenue and minimal expenditure ?

I'd be interested in any opinions or analyses plus any MAJOR outgoing costs I've missed.


NB: The importance of a declared dividend is that it provides an income stream (which is potentially fully franked/tax paid) for the shareholder without the need to sell any shares and thereby lower your value base of the owned shares. Money for old rope.