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Dividends are paid out of profit not cash flow. If there is no...

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bcc_100

998 Posts.

124

05/02/24

10:53

Post #: 72237556
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Originally posted by Thesquareman: ↑

The business has $25mil in the bank atm. Last year the free cashflow was $2mil and I imagine this should double in 2024 taking it to $4mil if the management continues to be prudent with the growth.

$7mil dividend would lower the bank amount but the question is why not, given that the original reasoning for the funding was for acquisition purposes that have not occured. If the business continues to grow organically the $25mil could be seen as a buffer but so would $18-22Mil based off this assumption.

Asking the question here not saying its 100% right thing to do but given the trend towards profits and dividends in the market isn't it worth asking the question?

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Dividends are paid out of profit not cash flow. If there is no profit then it's just a capital return. At every single quarterly they flag the potential for acquisitions – it's a strategy that makes sense to me. Comparing the dividend policy of Meta to DSE is frankly ridiculous.

Last edited by bcc_100: 05/02/24

DSE Price at posting: 28.5¢ Sentiment: None Disclosure: Not Held
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