Good News & Bad News, page-16403

What do you think should be the dividend payment policy of a company that does not have accrued imputation credits yet due to only just having started paying tax?

I know there’d be not many examples you could look at to draw comparison but please, so we can have a look at their dividend paying history and policy and put some context behind your banal question what we need are some comparative companies. What you are looking for is:

• a company in the ASX50 and climbing
• which has only just this tax year started to pay tax on earnings
• but for which the annualised revenue is likely to exceed $2B (USD which likely will be more than $3B AUD)
• where profit margin on product sold is something like 80-90% before tax
• which has close to no effectively relevant debt compared to cash at bank
• with published down stream (in its market) joint ventures building production facilities as we speak (POSCO) and other joint ventures developing technologies that could be licenced to competitors (CALIX) and clear plans to expansion of production of about 15% (P680) and plans for expansion of almost 100% of product output (P1000)
• involved in a disruptive industry that is having effect GLOBALLY
• supplying a product which has been acknowledged as being in “structural deficit” (with every given “expected” maximum price having been exceeded in the last 2 years).

If you could find that equivalent company and just let us know its dividend payment policy and history and then let us know how long it’s been in operation since it has been paying tax to develop those juicy imputation credits so favoured by many astute Australian investors, then we can likely have a little chat about the “question” you ask.

Thanks again for the opportunity to provide this information to our HC members.