They're either joking or dreaming. A typical dividend paying stock will apportion a part of its annual profits to holders. Depending on the industry this ratio changes, though often is about 40%.
so, say we get profit per year of around 400million, after everything is paid back and so on. As an example I'm saying that this is AVZ's share, which may not be realistic at 51% or 66% ownership but it may well be when we see the new figures. Anyway.
If the company's dividend payment ratio was 40%, this would be directing 160million to its stockholders. With a 3.2 billion register, this would see each holder receive 5c per share per year. So you can see why a 2$ dividend is a joke..
5c per share nothing to sneeze at though!!!
AVZ Price at posting:
66.0¢ Sentiment: Buy Disclosure: Held
