I'm interested by the 20% yield on this one - I like the idea of paying 27c and getting 15c back guaranteed by the time the tll road opens. Happy to gamble on Brisbane traffic that the shares will be worth more than that.
However I see that the underwriting agreement for the DRP (which allows cash dividends to be paid) has a number of terms and conditions - that most certainly get trigerred with the SP at these levels. In particular the cash divis can only be paid if the Dividend Reserve has enough money in it - my questions are how does money get into the reserve to start with? and secondly any views on the company's ability to continue to pay cash divis?
Cheers Si
RCY Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Not Held
