- Dorian LPG has recently provided a pair of large special dividends, which had given hopes that they might be a new very high-yielding investment in the makings.
- After more time has elapsed, the commentary and actions from management imply that they are more likely to focus upon share buyback.
- Their new $100m allotment sees them buying back upwards of 20%+ of the company at their current share price.
- Thankfully their cash flow performance has remained solid and thus their large special dividends did not impact their financial position.
- I feel dividends are preferable to share buybacks but at least they will help support their share price and thus given their very high near 18% free cash flow yield, I still believe that my buy rating is appropriate.
For further details see:
Dorian LPG: Buying Back 20%+ Of The Company, But No Regular Dividends