Quote:
Originally Posted by Dan02
Your math does not compute. I think you mean money back in 4 years assuming no dividend reinvestment.
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No kidding, eh?... Blond moment...
Quote:
Originally Posted by bizaro86
I'm not saying this isn't a good buy (and I've owned it a long time) but I doubt you're getting that 24% next year. Their dividend is very variable. Most of the value is a royalty on an iron mine, so basically most of the revenue is just production × royalty percentage x iron ore price.
Since iron ore pricing is way down revenue and dividends will be down as well.
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Thanks for the insight. I've listened to BNN Bloomberg comparison of LIF to Stelco and the comparison was much in favour of LIF, as they distribute all of the profits to shareholders. I think that the likelihood of a short-term gain from increased iron demand when the economy recovers in 2022 is reasonably probable above 50%. Plus, huge dividend. Plus, low P/E. Plus, a well-run company. I think it's a decent bet.