Evil Knievil: Christmas present

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Evil Knievil: Christmas present
Master Investor Magazine

Master Investor Magazine Issue 57

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Long time readers will recall my banging on about Caribbean Invest (LON:CIHL). The problem, as I saw it – and still do – is that the Government of Belize has so far refused to cough up its debts to both CIHL and Midway Investments, the spin off holding debts due to CIHL by GoB.

However, yesterday CIHL announced their half-year results to 30th September 2019 which were very respectable – CIHL might be on a PE of 3 at 34p offer. However, CIHL also announced an interim dividend of c. 5p.

“Interim” could be followed by a “final” dividend of a conservative 5p which means that at 34p the yield is 30%+. Certainly, the profits are coming through.

Of course, there’s many a slip twixt cup and lip. But CIHL goes ex-dividend on or about 4th January and pay-out date is 24th January 2020.

I reckon that, notwithstanding political risk, it is sound now to pay 50p. And of course, if the GoB are sensible the price should be rather higher.

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