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Pershing Square Holdings Ltd new dividend policy?
Hello! Any big fans of Bill Ackman in the room? I own PSH.AS in my portfolio in small % due to the fact that I like what he does and do invest in things that me the regular investor
is not able to do/has the knowledge to do, investing in CDS, IRS and other
insurance hedges as he calls it.
Of course, come with a price of 16% performance fee but like to have this exposure
to other market opportunities.
I’m curious what will happen with Pershing Square Tontine Holdings, Ltd. if they manage to find a merger target
or will return the money.
His Annual report and investors call are always a nice read/listen and I did notice something in this year annual report. I like that they pay dividend (I know, maybe he will use the capital better in the fund, but I like to have income) and this year they have changed their dividend policy so that would make it growing dividend (hopefully) as the NAV value increase, with a max of 25% yearly increase and no decline in dividend.
from the annual report:
“The Company’s intended policy in future years will
be to pay quarterly dividends in an amount determined
by multiplying the average PSH NAV of all trading days
in December of the prior year by 0.25%, subject to a cap
whereby the total dividend for the year is not to exceed
125% of the average total dividend paid in each of the
previous three years so that PSH does not make an excess
distribution under the PFIC rules. Once the dividend is set
for a specific year, the Company does not intend to decrease
it from that level even in the event that NAV were to decline
in a future year “
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