The dividend impasse at cash-flush industrial services group Howden Africa has reached such levels of absurdity that shareholders may well start questioning their reality. Corporate hallucinations do happen when shareholders are dangerously dehydrated.Howden last paid a dividend for its interim period to end June 2013. If it was straining in the prevailing economic conditions, it would be perfectly understandable for Howden to refrain from distributing cash.But the business remains convincingly profitable, and its cash flows look as strong as ever. Since calling an unceremonious halt to dividends, the company has collectively generated about R12.50/share in earnings. That’s a substantial sum, equating to more than 40% of Howden’s share price. While the company’s ability to churn out quality profits through thick and thin is no longer open to question, the most conspicuous issue informing the dividend debate is Howden’s cash pile.At the end of June Howden held net cash of R764m, equi...
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