Swinging at UOS, page-9

Actually I would have thought this would have been right up @travelightor 's alley. But I don't want to encumber his thoughts. I look forward to his feedback.

On the subject, @Klogg, of some "not wanting to wait so long for a return", these are sentiments I don't get. I can get my dividends straight away, if I choose. Isn't that a return? And the beautiful thing about UOS is that those dividends only represent about 35% of the cash earnings, or maybe 25% (roughly) of total earnings. That means that there are substantial earnings for me, even after taking my dividend, which are being reinvested in the business at high rates of return (that I don't have to pay tax on).

Or if I don't take my dividend until 5 years have elapsed, then that dividend will be twice as large, and it's already 5%.

How many businesses can give you a 5% dividend yield whilst retaining over three quarters of their earnings and reinvest their earnings at high rates.

If the same business was selling at a higher multiple, with thus a lower yield, why would it then be a more attractive proposition?