If brokers/analysts are correct, then the earnings per share run rate is 19.3c for 2014 and 26.2c for 2015. This is not EBIT per share - it is NPAT per share.
If the new dividend is 18c per share, then clearly GEM is paying dividends from earnings (not from funds raised by issuing bonds). In fact, GEM could increase the dividend to 25c per share in early 2015 and still be paying dividends from earnings.
Nih123, you have it back to front. Dividends are paid from earnings. Funds from bonds/placements/SPP are then raised and used for acquisitions to grow eps. The dividend then rises further due to the consequent increase in eps.
GEM Price at posting:
$4.82 Sentiment: None Disclosure: Not Held
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