Generally a dividend is paid out of a percentage of earnings , in sgh's case about 25% of earnings. Which by asx standards is quite low. It's the first cab off the rank in managing cashflow. Shareholders that are wedded to dividends are of concern. Sgh have a remarkable track record of growing earnings per share. Through regulatory change , the gfc all the while acquiring new businesses . That said it totally appropriate to cancel the dividend to assist in getting the debt to equity ratios back within the desired levels.
SGH Price at posting:
$1.19 Sentiment: Hold Disclosure: Held
