Today’s announcement of a dividend is yet another step forward in returning shareholders a small reward for their support.
Whilst some may have ‘demanded’ more, any return to investors is decided by the company based on their commitments going forward and their need to be categorised as a going concern when the accounts are audited.
It is quite rare for an AIM listed company to turn a profit, less so being debt free, so to pay a dividend is exceptionally promising and makes a long term investment very attractive when you look at the way Union Jack is progressing.
The recent venture into the United States is already proving a success with a producing well and revenue generating mineral royalties, all leading to a future for regular dividend payments.
There is no doubt in my mind that it is extremely prudent to build the value of the dividends dependent on the strength of the longevity of cash flow, not to pay one now that cannot be maintained or enhanced over time.
Profitability and no debt is still in its infancy. Until very recently, the revenue stream was pretty much a one trick pony that could lead to disappointment in any shareholder reward should that pony become lame.
Let’s see another successful well or two and an increase in the mineral royalties before any commitments, put the company on a strong footing and get it on the radars of investors in both the UK and the US.
I am very pleased to see this dividend, it is what I would personally consider prudent and sensible based on the company’s income and expenditure, forward commitments and plans. I commend the board for their decision and look forward to receiving my payment. I look forward also to a potential final year end dividend also. 
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