As part of a diversified portfolio I hold DBI now.4.6c quarterly...

As part of a diversified portfolio I hold DBI now.
4.6c quarterly dividend = 18.4c annualized.

At current share price of $2.05 that's a 9% dividend yield.

More importantly for those on income tax rates, the dividend is not taxable (it's deferred) due to the nature of the stock (it has a loan stapled to the stock). The dividends are effectively paying down the loan component. Therefore tax is treated as capital gains tax when selling the share (and hence by holding for more than 12 months can capture the CGT discount). This benefits high income tax persons such as myself.

The macro environment is good with it being a monopolised service provider to the coal industry (but on take or pay contracts, which gives us protection). And there is also the potential positive pricing review which will be backdated to July last year. Given strong coal prices I don't think there will be too much push back on the pricing review.

My only concern is the hidden debt leverage (apart from the internal loan to shareholders).