Comments on: Babcock and Brown spin as they sell, sell, sell http://www.crikey.com.au/2008/02/29/babcock-and-brown-spin-as-they-sell-sell-sell/ now with extra source Sun, 22 Nov 2009 03:49:59 +1100 http://wordpress.org/?v=2.8.6 hourly 1 By: Daniel http://www.crikey.com.au/2008/02/29/babcock-and-brown-spin-as-they-sell-sell-sell/#comment-24295 Daniel Thu, 01 Jan 1970 10:00:00 +0000 #comment-24295 I'm just a Novice investor and this may be a silly question, but according to the earnings figures on my etrade platform, for the next three years, BBW is expecting to pay out 5 times its EPS in dividends. I'm no economist but this makes no sense to me, is there a rational explanation? Or is the company just funding dividends with debt - and how is that possibly in anyones interest? does it drive up share price? Any knowledge appreciated, Regards Baffled. I’m just a Novice investor and this may be a silly question, but according to the earnings figures on my etrade platform, for the next three years, BBW is expecting to pay out 5 times its EPS in dividends. I’m no economist but this makes no sense to me, is there a rational explanation? Or is the company just funding dividends with debt - and how is that possibly in anyones interest? does it drive up share price?

Any knowledge appreciated, Regards

Baffled.

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