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It is much more common overseas for dividends to be annual and to be tied more closely to earnings. Because they are tied to earnings, they will wait for the audited financial statements prior to making a declaration. In South America, it is very common that the banks will go so far as to payout 60 or 70 percent of earnings and only leave the remaining 30-40% as capital expansion for a company.
It can cause for some interesting affairs. SIEGY will soon be paying out its annual dividend. It has guided shareholders as to where it believes it will end up and currently it is in the 4.25 Euro range. While that may be a middle of the pack yield annualized....it's not bad if you hold for just the remaining month and a half to get the next one. Sometimes that produces movement. BCH (Banco de Chile) tends to have an oversized movement in its swing. The stock will plummet after paying out far beyond what it has paid and then slowly come back over the course of the year. ITUB has both. It has a monthly....tiny dividend (a relic from Brasil's hyperinflation days) it has a set annual dividend and then it has a special dividend (sometimes).
There's even a couple that, in their quest to get quality shareholders, pay different dividend rates depending on how long shares have been held.
The US really has the biggest....divorce from reality between a dividend paid and financial performance of a company. There's plenty of reasons not to hold VALE, or to not want dividends....but I wouldn't let an annual vs quarterly dividend dissuade your decision on what to buy.
Location: West Los Angeles and Rancho Palos Verdes
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Quote:
Originally Posted by artillery77
It is much more common overseas for dividends to be annual and to be tied more closely to earnings. Because they are tied to earnings, they will wait for the audited financial statements prior to making a declaration. In South America, it is very common that the banks will go so far as to payout 60 or 70 percent of earnings and only leave the remaining 30-40% as capital expansion for a company.
It can cause for some interesting affairs. SIEGY will soon be paying out its annual dividend. It has guided shareholders as to where it believes it will end up and currently it is in the 4.25 Euro range. While that may be a middle of the pack yield annualized....it's not bad if you hold for just the remaining month and a half to get the next one. Sometimes that produces movement. BCH (Banco de Chile) tends to have an oversized movement in its swing. The stock will plummet after paying out far beyond what it has paid and then slowly come back over the course of the year. ITUB has both. It has a monthly....tiny dividend (a relic from Brasil's hyperinflation days) it has a set annual dividend and then it has a special dividend (sometimes).
There's even a couple that, in their quest to get quality shareholders, pay different dividend rates depending on how long shares have been held.
The US really has the biggest....divorce from reality between a dividend paid and financial performance of a company. There's plenty of reasons not to hold VALE, or to not want dividends....but I wouldn't let an annual vs quarterly dividend dissuade your decision on what to buy.
Bought another 2200 shares of CURO at $3.04 last week. Brings my total number of shares to 45,134. Patiently holding with at least a two year time frame in mind, but currently getting my butt kicked badly with this one.
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