40percent2years - Possible or not?

Investing for stable stock dividends now and in the future is my main way of creating the positive cash flow that we are going to live off. The blogger 40percent20years is setting a very good and clear long-term goal for his investments (40% dividend yield 20 years after your investment).

So could there be cases where you could be 10 times faster reaching a 40% dividend yield, i.e. to reach it in two years time? Yes, matter of a fact I found out about one case fairly recently!

In the period between March 21st and August 20th 2012 (i.e. during 5 full months) it was possible to buy Awilco Drilling for 53,5 NOK or lower (however most of the time between 46-51 NOK). Total value of stock transactions during this period was over 190 MNOK, however most of this I do not think traded between normal small investors. My understanding is however that at least 23 MNOK did, so it would have been possible to take a significant stake in this company. At this time the company did not pay dividends, but clearly stated the following in its full year 2011 report: "During the course of 2012 Awilco Drilling is scheduled to repay debt to Transocean amounting to approx. USD 46 million. The scheduled debt repayment in 2013 is USD 11 million. This significant decrease in debt repayment will enable a return to investors of a major part of the company’s free cash flow generated in 2013 and beyond. The level of dividend will reflect the underlying financial position of the company, while taking account of opportunities for further value creation through profitable investments. The dividend will normally be distributed on a quarterly basis with expected commencement sometime during the first half of 2013."

The first quarterly dividend was paid on June 20th 2013 and after that quarterly. The first four dividends amounted to 24,9144 NOK, corresponding to a yield of 46,5% on a price of 53,5 NOK. Buying the stock at 49,5 NOK would have yielded 50%... So new target should be 50%2years. ;-). The company also just paid out its fifth dividend, which was the highest so far at 6,8909 NOK.

NB: Closing stock price today June 24th is 145,5 NOK. I have a position in the stock (started much later unfortunately)