Who says small caps aren’t sexy?
Lion-AsiaPac just announced a bumper special dividend of 15 cents for their shareholders (unfortunately, i am not one of them) Its price before announcement was 35 cents, so special yield is about 43 percent. Its price once went down to 11 cents during crisis. Those who managed to buy it are richly rewarded.
There were also other stocks which gave out bumper dividends like singapore Shipping Corp, Hwa Hong.
Value investors loves stocks that are rich in cash and has no plans to utilise them for investment purposes.
However, they must be patient as the management interests may not be aligned with the shareholders. They must also look out for poor use of the cash which ruin the prospects of a rich dividend.
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