do you really think that they'll be able to pop a 2c dividend...

do you really think that they'll be able to pop a 2c dividend anytime soon?

I wouldn't like to commit to that until I see the results due out in three weeks.

What we do know is:

1. They are making a lot of immediately cashflow-accretive acquisitions at high yields
2. Simon Owen has publicly stated his intention to increase the dividend within the next 12 months

Balanced against this is the fact much of their free cashflow is likely to go back into the acquisition pile.

So I do expect a higher div in the next 12 months. Whether it will be 2c is a stretch. It may be more like 1.3 to 1.5c.

The only other comment I'll make, is that I have mixed feelings about the Penrith acquisition.

I grew up (went to school) in Ipswich in Qld which had some similar areas that have remade themselves in the last 10 years. Whether Penrith is doing something similar I don't know, but keep in mind that INA is deliberately targeting the lower end of the market because this is where they have identified the biggest shortfall in availability and where they believe the crunch is about to come.

Whether INA would be worth buying more at 37c I don't know. I've been holding since my buy price of 7.8c. I tend to think that it's a good investment at 37c, but perhaps not a great one. Growth should be solid going forward but what made INA such a great buy was the yawing gulf between the SP and NTA.

It took the market a long time to wake up to that gulf, but it's substantially closed now so INA is not such a bargain. Of course, we'll need to wait three weeks to see what the revised NTA is. If there is still a discount there could be value there.