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  1. #1

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    Six Flags offers dividend

    I was surprised to see that Six Flags was going to offer a dividend this year... The company has some major issues it needs to face, and I don't know if now really is the time for this... But perhaps it is a tactic to keep people in the fold... It ain't exactly a growth stock right now...

    Your take?
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  2. #2

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    Re: Six Flags offers dividend

    Dividends are a load of crap. After last year, a year in which the CEO was forced to announce his retirement due to shareholder unrest, and a hostile take over bid, Disney raised its dividend for the first time in at least a decade (a pretty significant increase at that). Coincidence? Heck no, they did it to placate the masses. "No worries, we're doing juuuust fine...have some more money." As far as I'm concerned, unless it's because a company had an outstanding, off the charts, no doubt about it successful year, I consider a dividend increase as a bad sign.

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    Re: Six Flags offers dividend

    Quote Originally Posted by cellarhound
    It ain't exactly a growth stock right now...

    Your take?
    Which is why they are offering a dividend. It provides a rate of return on a shareholder's investment when the stock price is flat. The question is: can they afford to pay the dividend?

  4. #4

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    Re: Six Flags offers dividend

    Quote Originally Posted by fkurucz
    Which is why they are offering a dividend. It provides a rate of return on a shareholder's investment when the stock price is flat. The question is: can they afford to pay the dividend?
    That is the an interesting question actually... They have some nasty dept... However, from sorces I know in the company, they say they are doing well...

    They are stuck in this stasis... Investors see a lot of value in the stock, but no body really wants to own it... I think the Dividend is a ploy... I am not certain that it will work...
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    Re: Six Flags offers dividend

    Quote Originally Posted by cellarhound
    That is the an interesting question actually... They have some nasty dept... However, from sorces I know in the company, they say they are doing well...

    They are stuck in this stasis... Investors see a lot of value in the stock, but no body really wants to own it... I think the Dividend is a ploy... I am not certain that it will work...
    It can really backfire on them. Dividends are supposed to be reliable. If a company has to reduce or eliminate its dividend then its shares will take a major hit, as the act will be seen as a sign of trouble. For this reason companies should not offer dividends unless they are sure they can pay them into the long term.

  6. #6

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    Re: Six Flags offers dividend

    186 million in operating income, minus 217 million in interest payments and 33 million in taxes....

    Long-term debt climbing at $60-70 million a year....

    Yeah, this is a company that should be paying dividends...... NOT!!!!

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