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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV