NEW YORK (TheStreet) -- Dividend yields of 10% are hard enough for established public companies to pay out, let alone those that are just coming public.
But one company that is going public plans to offer such a dividend, as Francis Gaskins, research director at Equities.com, discussed with TheStreet's Debra Borchardt.
OCI Resources plans to trade under the ticker symbol "OCIR" and is looking to raise $100 million in its public offering, with shares priced between $19 to $21.
The company's dividend is expected to yield around 10%, a rather lofty ratio. However, Gaskins said it's achievable for the 50-year-old company.He added that it pays out a lot of cash and that a look at its 12-month projections makes it seem reasonable that the company can cover the minimum dividend payout, which would be about $39.9 million, based on a 10% yield. Although Hi-Crush Partners (HCLP) is a related company and yields less (8.1%), Gaskins said it's because OCI Resources likely has less growth potential, with plant capacity operations at 96% to 97%. He concluded that the company will likely draw some strong interest from the retail investor and perhaps even some institutional investors as well. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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