An update on my favorite reptile
EcoPetrol had their annual shareholder meeting last Friday in Columbia. With it they released updated guidance on the earnings distribution proposal.
In my last note on EC, I postulated that the company would have a dividend yield somewhere between 13.1% and 15.9%.
With the updated guidance, I can see that I was very close in my original estimate. 2022 paid an extraordinary dividend equal to 13% of net income. For 2023, they will be doing an extraordinary dividend equal to 7.3%. This pushes the dividend payout to approximately $1.60/share for the year.
Here is how I did the math:
The news sent the stock higher at the open.
There is a little confusion on my part on payment and ex-dividend dates.
According to the proposal, “the payment of dividends to minority shareholders will be made in three queal installments on April 25, September 26, and December 19, 2024.”
But according to the press release on Yahoo Finance:
“The payment of the ordinary and extraordinary dividend to minority shareholders will be made in two installments of equal value, on the following dates: April 3, 2024 and June 26, 2024.”
I’ve run into problems before when investigating non-US based companies. They don’t always fit neatly into a box for the mainstream financial press. Also, there can be important facts that get missed in translation. I hope to dive into this soon.
In the meantime since sports betting is the new value investing, here’s my paper trades for Thursday and Friday (odds are from ESPN.COM);
So far I’ve gone 6 of 12 since the tournament began. Not great. Lets see if I can pick it up as odds-maker margins get tighter.