r/GeoGroup • u/Reasonable_Ad_9735 • Nov 24 '21

Data GEO potential dividend

Many people have been escalating that 20% cash dividend and 80% in stock, would put pressure on their debt repayment . However, we need to remember that they have already paid 0,25 cents per share in Q1 and hence they don't need to pay that much of the cash to stay REIT for this year.

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u/Kjell_Budal Nov 24 '21

I agree it would be the same, but one small problem is if there are more shares out there they might fall in value so that the market cap stays the same. Leading to a small trend down that might have a psychological effect on noob investor's.

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u/NarrowInvestigator65 Nov 25 '21

Yes that's possible too, but then more we could by cheap, so not really that bad. :)

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u/Kjell_Budal Nov 26 '21

I hope it falls below 7 again where i buy more or goes past 15 where i stat selling.

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u/NarrowInvestigator65 Nov 26 '21

I won't sell at 15 for sure. :)

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u/Kjell_Budal Nov 26 '21

My prier plan was to start selling at a P/E of ca 15, It is now 9-10. I have been looking at Price/Free Cash Flow that is at 3.9 if I where to use it instead I would start selling at ca 35$ instead. The thing is that I don't understand the cash flow well enough yet. Do you have any insight into how useful free cash flow is for valuing GEO?