Brett Gallagher from Julius Baer Investment Management came on Closing Bell talking about his allocation and one stock pick;Macquarie Infrastructure Trust (MIC).
I tuned into this one when the IPO priced late last year. This is my type of pick, on the surface. The business is things like parking lots and toll roads. Low cost and cash generating. I think I remember hearing that this has a 7% yield.
There are a couple of funny things that I can't find news to help me sort out. According to the company site it was supposed to declare its first dividend on March 31, 2005 of $0.50. I looked on multiple sites and saw no news to update the dividend. The trust has been public since last year and there has been no dividend. That seems strange to me. Mr. Gallagher said the dividend would pay later this month and in fact work out to a 7% yield.
Perhaps its me but something doesn't feel right.
By the way Mr. Gallagher has 35% in the US and 65% foreign. He likes Europe, emerging markets, Japan and banks in Italy and Scandinavia.
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2 comments:
I don't think there is a need to worry quite yet. The company has a Conference Call scheduled for Monday, May 16th. at 11am.
http://www.shareholder.com/mic/calendar.cfm
I suspect that it will formally declare a dividend, along with the results for the first quarter, at that time; and possibly publish the actual record date and payment date then for the anticipated US$0.50 quarterly dividend.
Clearly, the $0.50 / share, if annualized, would give a gross yield of about 7%, based on a today's close of $28.40.
I don't think the Underwriters, or the Australian parent (?), would allow MIC to fail to deliver the goods, ...especially at the first earnings announcement after the IPO.
Stranger things have happened, but I don't think there is a cause for concern at the moment. MIC's market price, and its relative performance, is not suggesting there is anything untoward here. We'll see.
We can all exhale now!
http://www.shareholder.com/mic/news/Q105/Q1Dividend.pdf
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