Why G8 Learning is a Great Stock: $GEM

There is a difference between 'owning' and 'leasing' ? Is the current debt helping to finance the dividends?

Of course, increasing debt does amplify the risks of the business, and deserves scrutiny. The $350 million in debt represents about 65% of shareholder equity. At present, G8 can comfortably meet its obligations — it makes enough money to cover its interest expense nearly 9 times over.

Latest report is that G8’s dividend remains unchanged at 6 cents per quarter, fully franked. At the current price, that represents an 8%-odd yield, or 11.4% when grossed up for franking credits.