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Games Workshop Dividends

Lord Hanaur

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OMG.  Has anyone seen the dividends that GW has given out since 2010?


For the uninitiated, dividends are like profit sharing in a lot of ways.  No profit, no dividend for owning the shares.


In October 2004, the stock dividends began going through the roof.


During the 2008 collapse, for obvious reason, there was no dividend again until 2010, but in late 2010 (September) it sent berzerk from then forward.  I mean bananas relatively speaking.


June 2012 was when they released 6E.  The stock price SOARED.  It started at 522.59 and then jetted to 823.50 in September of 2013, a year into the new edition. 


It has now suffered a glacial meltdown since then to $493 in February!!!  Wow.


Now the interesting thing about this is that the stock itself is just the eye of the beholder.  It means essentially the confidence in the company dropped significantly after people had seen the game for a year, investors wouldn't touch the stock because, probably, they lacked confidence in its future compared to alternatives.  The stream of goodies started to come out and innundate us. 


But it is no shock that a CEO would see this and say "holy crap, my portfolio and that of my board members is suffering...Gotta do something."


And so only 2 years in and even AFTER leaking the 7th Edition as some are calling it...  Stock roseTO $579 and that gain may be dubiously banking on sales of the new book while cautiously aware that their prices are out of whack and could counterbalance any gains...


Now the reason I say all this is because REGARDLESS of how the investors are feeling at the moment, the company simply IS making money!  a Dividend of $24 was given March 2013 and $16 in May 2013 just two months later.  Those numbers have nothing to do with Stock price.  They purely are the amount of money the company gave to shareholders divided by the number of shares themselves.  The value of the shares themselves are irrelevant to dividends, though the cost does help PREDICT if dividends are coming.


a $16 Dividend or $24 dividend is INSANE.  There have been as many as 300,000 shares traded in a given month, so this isn't a scenario under which there aren't many shares being available! 


I am pretty stunned at the profitability margins this company has and yet investors can see something is wrong as evidenced by the stock prices!


Anyways its a very interesting thing to look at.

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in a vacuum, and in my opinion, this really just confirms that the investors are in control of the content produced by GW.  They have found out how to 'push the money button' for substantial short terms gains, again in a vacuum, with zero consideration for the long term effects.  GW may be profitable, but none of this bodes well for the long term health of the game, again in my opinion. 

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