I agree with you, re like to see the company continue to invest for growth. But ISX will generate so much cashflow/free cash, if the business continues to grow at or close to present rates, and given that a lot of it is recurring revenue with low fixed costs, that we can have our cake and eat it too. Fully franked divs are very attractive especially to retirees of course, so starting to pays divs will attract new shareholders. Also I remember JK said ISX is intending to pay divs after ADI is granted, as investors expect banks to pay divs.
eg EVN, who need to continually invest in gold mining operations and explorations, all the same, innovated in their industry by setting a policy to pay "2% of profit" (can't remember the detail) as policy. This was so successful in attracting investors, that other gold miners followed, and EVN have since raised divs to 3%.
ISX Price at posting:
$1.07 Sentiment: Buy Disclosure: Held
