Wednesday, December 06, 2006

Biovail does it again

Holy Crap! Just when I'm thinking of dumping my Biovail shares since the company's growth prospects are so dim, they go and pull something like this:

Effective immediately, Biovail's Board of Directors has adopted a new dividend policy that contemplates the payment of an annual dividend of $1.50 per common share, a 200% increase relative to the Company's former policy.

In addition, the Company's Board of Directors has today declared the payment of a special cash dividend of $0.50 per share payable on January 22, 2007, to shareholders of record at the close of business on January 10, 2007.

Sweet! Beyond the extra cash, what really pleases me about this is that Biovail wouldn't have boosted the dividend unless they were confident they could maintain the payments. Only a complete gong-show of a company would up their dividend and then slash it shortly thereafter.

This way, I can enjoy the coveted double-whammy -- extra dividend money, coupled with steady capital gains as Mr. Market realizes that Biovail is now a decent income-producing equity. The Dividend Guy would be proud.

I still have no idea what Biovail is going to do on any given day, but considering the amount of nasty surprises I took during the first few years I held the shares, I'm happy to ride this current wave of pleasant surprises.

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