How To Respond To IGL’s New Capital Management Policy?
Hi MM Team. Having taken a first look at IVE Group's 2024 AGM results today, I am wondering whether Market Matters' take on the company might change in relation to it's position in the MM Income Portfolio? Having followed MM's lead on IGL as a suitable investment for income-oriented investors, we have held this share since 2020 - and done very well - many thanks MM! Given that IGL are now planning to 'freeze' the dividend at the current level (presumably at a maximum of 18 cents per share) and direct excess cash toward repaying debt and/or 'other EPS accretive capital management initiatives' such as share buy-backs, is it time for income orientated IGL investors to consider selling their shares, especially if the management team achieves their aim of improving the "disappointing" share price? What would MM consider IGL's share price target to be now? We have had recent experiences with another company (NGI) that seem somewhat similar to IGL's planned move - they lowered the dividend payout level and 'went for growth' promising an appreciating share price; they have traded sideways ever since. All the best guys and keep up the good work!
