eerrtt the revised FY12 NPAT forecast still provides profit well above last year's dividend, so from that point of view the yield is sustainable. The revised NPAT will be below last year's NPAT result though, so whether or not the board choose to maintain the dividend this year (and thereby increase the payout ratio) will not be revealed until next month.
As for the downgrade itself, I get the strong feeling that this is a 'clearing the decks' announcement that is so common with new management. If anything, that makes the future of this company even more appealing at this price. I have been adding to my holding.
SWL Price at posting:
$1.04 Sentiment: Buy Disclosure: Held
