At CSR, many years of profits led to dividends at a certain sure...

At CSR, many years of profits led to dividends at a certain sure level - in recent years about 8 cents a year.

Long-term investors were goaded into believing that, with the sale of Sucrogen, this policy would continue: shareholders would share the spoils from the profits generated ? their only reason for investing. (In all the years listed on the stock exchange, CSR has always been a company offering fair annual dividends ? not a stock market casino gambler?s plaything).

Up until now.

Sucrogen has been sold. There is $1.76 billion in kitty. Directors led us to believe we could expect a fair return.

There was already a 3 cents interim dividend. After this, shareholdings were consolidated 3 : 1.

Reducing the number of shares has meant that to retain the 8 cents annual dividend on each old share (24 cents a new share), the directors had to declare a final dividend of 5 cents per old share or 15 cents per new share.

Instead, they declared a 5.3 cents final dividend for each new share.

For the year, shareholders have received dividends of 9 cents (ie 3 old shares x 3 cents) and 5.3 cents per new ? that totals 14.3 cents.

I hope the directors do not expect us to think that normal ordinary dividends levels have been maintained by paying a 5.3 cents final dividend.

I have previously listed the multitude of factors (internal and external) weighing down the share price.

The directors? actions in reducing dividends adds to these negative factors.

I have consistently maintained that the only reason to own an investor stock like CSR is because of the regular acceptable dividends.

My immediate reaction on hearing the dividend announcement was to sell the stock.

A more considered view is to give the new management another chance to redeem the dividend policy ? just one chance.

If in 12 months they have been unable to demonstrate to me it is worth holding the stock, I would be forced to reconsider my position.

I am certain many small and large long-term investors feel the same.