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Strategies & Market Trends : Dividend investing for retirement

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To: Steve Felix who wrote (32044)11/1/2019 7:01:52 PM
From: Mannie   of 34328
 
From the question and answer portion of the ABR earnings call...

Jade Rahmani

And touching on the dividend, let's hope the decision to again raise the dividend just with the fact as you mentioned rates, spreads being an uncertainty. Why not chose instead to be more defensive in paying some additional capital?

Ivan Kaufman (CEO)


Well, number one, we feel we are very conservative. We have a lot of room within our dividend. And our core earnings just continues to grow at tremendous levels. And I think what's worth noting is when our earnings grows our baseline grows, it doesn't go down. Our servicing revenues, our escrow balances, our balance sheet, it shows a tremendous baseline from the year-to-year. And we have that -- we're still at a very low payout ratio. We feel there is a lot of room and we are very comfortable with it. And it would almost be inappropriate for us to have a lower payout ratio with our core earnings growing at such a rapid rate.

seekingalpha.com
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