ZNO is generating a large amount of cash, has low overheads, high margins & requires little capital investment. In some ways it's a dream investment.
The dividend payout will I'm sure be set with a view to the sustainable cash generation of the business going forward. 3c IMO is a sensible level based on the year end cash balance but could be lower if there is a view that some of the current sales aren't sustainable going forward. For me if it were greater than 3c it would send a very strong message about the future.
There is also the possibility of a dividend plus a special dividend to distinguish between what is sustainable going forward & a one off that pays out excess cash not required. e.g 2c + 1c special.
Also worth bearing in mind that effectively all the performance was in H2 & a dividend would be for the FY. So we could get a 2c dividend + 1c special & then an indication of a 2c dividend for the H1 21 followed by another 2c for H2 FY21.
A dividend policy announcement in the results would be good, e.g 50% cash generation or 30-50% payout of EPS.
