SIAF: technically Chad was correct in saying that the shares they issued were strictly for "debt financing" and the divi was paid from their cash coffer. No Mgmt would admit in a filing that they issued so many shares to pay say 1m for the divi. But in reality, cash is cash. If you use $1m to pay the divi and need to finance your debt in the same period by issuing 100K shares here at $0.70/sh and another 150k shares there at $0.60/sh instead of paying off the debt in cash, then the question is why you pay a divi if you have no cash left to cover your debt ?
Again I donot have a problem with them declaring a divi 2 years ago in anticipation of higher stock prices and to prove the legitimacy of their business. Nor do I have a problem with them using 10% equity per year to finance the growth. I think it's a very reasonable price to pay for the growth I am getting.
Most companies wouldn't fit that bill then. Almost all large companies have some level of debt and financing. By your logic even Cellcom Israel with a 27% yield has financing and debt.
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