The implication is clearly an annual cash dividend of less than 2 cents right now
If you disregard the higher payout rate that is;
The eps should drive the dividend. And using a payout rate of say 33% of eps would be good over the long term. However, for the time period of the next 1-2 years I believe having a 10% yield and perhaps a higher payout rate would keep shareholders committed to buying
I suppose the purpose of his post was to support the PPS and "keep shareholders committed to buying". If the cash dividend is adjusted down when the PPS goes down, I don't think that keep shareholders commited - quite the opposite.
Doesn't really matter though, since they've cancelled it
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