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18:14
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Originally posted by Biggsy 07
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Hi guys as a novice investor I am just curious as to people's opinions in regards to future earnings guidance and expected dividends to be paid going forward, ie pay out ratios on this stock. I realise these are guidance only and subject to forecast changes but do people expect higher payout ratios going forward or do we expect earnings to be retained to pay down debt in order to minimise the risks associated with this company going forward? What I'm alluding to given that Aussies tend to be great dividend chasers, is would we expect future higher payout ratios by SGH in the coming years or are we looking at wealth being accrued long term through share price increase and low-ish payout ratio like a growth stock? I also note that people have suggested franking will continue to diminish over time due to majority of earnings coming from outside of Australia. I was only aiming to put companies that paid FF dividends into my SMSF but SGH was irresistable at these current prices. I work night shift and love reading this forum overnight in the wee hours, very informative and entertaining. I'm amazed at how much research and information people know about this company and the speculation about which way this company's share price will go in the long term. I suspect it will be upwards in the longer term, you can fool some of the people some of the time but not all of the people all of the time...GLTA!
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It would not make sense to me for Slater and Gordon to increase the payout ratio anytime soon. SGH has recently issued a large amount of shares and borrowed money to pay for its latest acquisition. In addition to this it has also mentioned it is interested in expanding into Canada.
