So I received abit of a dissappointing news last month, when i got a letter from Macquarie Infrastructure Fund to subscribe to their investor relations service. I thought they had some good news for me!
Turns out that they will be choosing to pay their dividends out of cashflow, and using any extras to pay up corporate debts or pay us as special dividends.
My question is: SHOULDNT this be done so long ago????
I am really getting tired of this talk about making moves to benefit shareholders. Why make these moves now compared to what they would do 1 year ago. It would seem that these moves shows more in-competence in management rather than working for our benefits.
Anyway, MIIF is tracked on my Dividend Stock Tracker here. The projected dividend going forward used to be 8.4 cts per annum. At current price of 29.5 cents, the yield is 28.5%.
Based on this news, i am taking a conservative approach, that the credit situation will result in still high borrowing cost and lower operating profit. In such a scenario, going forward i am projecting 2 3cts payment. The yield will be reduced drastically to 20%.
Still a high yield compared to my yield at 88cts (7%), 78cts (7.6%) and 48cts (12.5%). I wonder if i am in a piss off mode about this Macquarie circus.