Ann: Nomad Group - Next Step in Company Restructu, page-5

re: Ann: Nomad Group - Next Step in Company R... Green Panda,
NOD has significant capacity to pay dividends. Even if NOD pay out a 1c dividend immediately (which they can EASILY accommodate), that is a dividend yield of 16.4% (including tax rebate for SMSFs). You can easily get in the realm of 30% yields if more capital is returned. I believe as soon as dividends are discussed (at the AGM) and then declared, we will see a rocket under the sp.

It should also be remembered that McGrath is a very cash generative business with very little capex needs. If the Board adopted a 100% payout ratio for McGrath, you would have a sustainable yield of 15%+.

The best thing shareholders can do is write to the company (attention Chairman Peter Abery), simply asking the Board to immediately adopt a 100% payout ratio and start paying dividends. Shareholders can make a real difference here.