pear respectfully disagree 1. no serious investor invest in fmg...

pear

respectfully disagree

1. no serious investor invest in fmg for 3-4% dividend yield, buy a bank share/term deposit or government bond
2. dividend are a payment out of the company never to return
3. a buy back is an investment...in its own company...it reduces stock on use increases eps and dps by default
4.the dividend stream isn't growing at all. they are a single commodity stock at the whims of the fe price which onver a 5 year period can be anywhere and by their definition of payout of 50-60% of npat
no one can say dividends will grow year to year, its nonsense cause thy are at the mercy of the fe price


while i won't give you my dividend, i would prefer the company used surplus funds to invest in themselves, isn't that why i bought the company to begin with? because they are good/great stewards of my capital? their return on equity is far superior than 5% so why would i want dividend when they can year in year out return 3 times more on that capital.

i am not saying to replace the dividend but they have surplus cashflow year in year out above npat - 1.2b usd with depreciation allowance and its time to put it to work

i am an investor but i am not happy with a capital gain of 0/-ve and a dividend yield of 5% i invested in tis company as i believed the management could deliver world class operation, reduce debt and spew out massive free cashflow

they did this yet i am down on my investment...something not right with that and its up to the company to release shareholder value with all or any of the tools available to them