Texas Pacific Land Trust (NYSE:TPL) announced today that its Board of Trustees has declared a cash dividend of $1.75 per sub-share, a $0.70 increase over the prior year, payable March 15, 2019, to sub-shareholders of record at the close of business on March 8, 2019. This is the sixteenth consecutive year that the declared dividend has increased. Additionally, the Trustees declared a special dividend of $4.25 per sub-share payable March 15, 2019, to sub-share holders of record at the close of business on March 8, 2019.
$6 all in takes approx $47MM off the balance sheet. You’ll recall that there was about $110MM on the sheet as of Q3. I view this as a signal that TPL wants to play it down the middle of the fairway. Dividend is certainly up but not to a point where it is boxing out repurchases, water CAPEX, and land dealings.
$6 all in gets you to a 0.92% div yield. Certainly not a high flyer in the dividend income world.
The Texas Pacific Land Trust Investor 
Agree, they want to move all agenda’s ahead, a nice bump in the dividend, but not enough to slow the buybacks, or the water business. Still, I would be happy to not have the dividend and have them buy back 67,000 shares with the 47 million instead.
Yes, its $6 as a dividend, but still that is less than the bid/ask as of right now which is a over $7. It seems inefficient as a way to deliver the most in shareholder value.
I guess I can do a synthetic buyback equivalent and just turn the dividend into several more shares, although it less tax efficient than them buying the shares back…although they probably face the same bid/ask spread chasm.
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