7 thoughts on “Dividend Declaration Day Is Nearing

  1. Regular dividend increased to $1.50, which is a nice bump but still low. A special dividend of $5.00, again better than 2018 but allows them to keep some powder dry. A special divvy of $6-8.00 is not out of the question, seeing that the stock price has risen lately, making buybacks less appealing.

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  2. No special knowledge on my guess, other than they seem to be more interested in dividends than share buybacks the last couple of years. My prediction is $2 regular dividend and $6 special dividend.

    I also predict the total dividend will be less than the bid/ask spead most of the time.

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      • Sorry for the buzz-kill. 🙂 Am making the point many owners would rather have them buy back the shares instead of the dividend, and relative to the spread, its not significant.

        For so many years it was a very small well under a buck dividend. However, it may be a different purchaser today of the shares, with different objectives. For me, fine with no dividend, just plow it all back into less shares, expand the water biz, etc. I want the compounding at the TPL rate, not what I would instead do with the dividend.

        It is interesting when you see just how much the company has changed in the last few years. We are now in the water business. We sold in the last quarter royalties. We are in the middle of a 100 Million land swap. We pay the CEO (who is in his low 30’s) 700k a year, Its not the sleepy TPL of just a few years ago.

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  3. I agree with the educated guesses posted here, but do wonder if the trustees have heard some voices of shareholders who don’t prefer dividends due to the tax hit for shares held outside retirement accounts. If all shareholders were surveyed about the optimal use of cash, I’d bet their preferences would be buybacks, then water build out (assuming the ROI is rapidly improving and will accelerate EPS), then dividends. They have their place, I suppose, when high share price decreases volume of shares that can be repurchased.

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    • Buybacks are wonderful but at a certain price it becomes less appealing. Last year we were at $860. Recently we were $409. Management is paid to make the most productive use of profits. Just hope they choose wisely

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