re: ** aoltimewarner profit rises on matrix reload
Hi,
I don't agree re the cut of the dividend for SARDS. The decision to cut the dividend was in line with cutting the dividend in the main stock, ie. to pay for the matrix which will clean up.
If you cut a tiny dividend for something that will increase the value of the company I would prefer it, otherwise you might as well go to www.ingdirec.com.au and get 4.75% and not hold stocks.
VRL cut the dividends to fund matrix instead of taking out massive loans. It also wants to become more of a US model, and wants to grow, dividens impede growth, why many US companies don't pay them.
Eg TLS almost pays out 100% of its profit as dividens, how can the company grow?
I prefer capital gains to dividens, sure they upset a few funds and some self funded retires, but essentially I think it was in the interest of the company to cut it.
Anyway, its undervalued, and time will fix this... :))
SARDS has nothing to do with it, they just want to use the money to make money, not pay it out to people speculating on VRLPA :P
I buy VRL not VRLPA and don't live in hope that VRLPA will pay a dividend, since I think VRL will get rid of VRLPA eventually since it is a drain on the company.....
VRL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
