Stockholders expectation vs company reality.  This is an old favorite of mine and yes I have also been guilty of it.


"Hopefully MMT will increase the dividend soon as some rumors say."


We went through this in Q1 2012.  Everybody was disappointed because Mart was not announcing a dividend even so it was discussed.  Well, at the time Mart could not afford a dividend period.  When the Board decided that Mart was going to pay a dividend (June 2012) they had enough cash in the bank to sustain the dividend in case of a bump on the road.

Let's try an hypothetical:

Mart announces a dividend in January 2012 and in February the pipeline goes down for more than a month.  Mart announces that they are cancelling the dividend.  What do you think would happen to the stock price?Would anybody trust Mart when they restart the dividend?


So, just because the CEO mentioned that it is the intent of the company to increase the dividend at some point it does not mean it is next week!  Best guess Q1 2014.

We have to trust the Board that they will make the right decision for the best interest of the company and its stockholders.