Petrejus,
Thanks for the explanation.Interesting that you are very conservative with the spin out dividend projection, and get to $.90 using 50% of income.
Well, I certainly have no objection.
But going from 8% of income, and from raising capita from equity for growth to paying 50% of income would be quite a leap. This is most assuredly not common in the U.S., other than reits or royalty trusts, and perhaps another category or two.
I imagine that Solomon will still want to grow the company in 2014 and 2015, and fast growing companies do not pay high dividends in the U.S., without exception I believe.
In addition, I would think that Solomon would see 50% of spin out cash distributed to shareholders as plenty generous. And, I have to agree.
But if it is common in Sweden to pay that much of ordinary income, would be interesting to get some guidance on this from the company. JF may have a good idea.
If 50% of ordinary income as a dividend is common in Sweden, what is the common yield?
