Don't Let Dividend Yield Drive Your Investment Decision [View article]
Great article Alan.
The dividend cut for CLF was widely expected. I think what really spooked investors was the share issuance. CLF was obviously in need of cash. Both those decisions destroyed shareholder wealth and goodwill.
The dividend cut which shocked me the most was CTL. They had been showing signs of turning the corner, increasing revenues, and diversifying away from landlands. They have spent large sums on capex, building out internet subscribers, data centers, and fiber to tower. 2013 guidance for free cash flow covered the dividend. They blamed an eventually cash flow decline due to "taxes" in 2015, which I find to be a rather lacking excuse. How could they afford a 2yr, $2B buyback (which is 1B per year) and not the full dividend? I think CTL forgot who owns there stock and why they own it. CTL is/was an income stock. That they sacrifice their dividend stock "cred" is astonishing.
Pengrowth Energy: A 53% Discount To Book Value Plus A 12% Yield [View article]
beabaggage,
I agree that the market is pricing in a dividend cut. However, the current dividend is only 40% of funds from operations. PGH can actually cover its maintenance capex and dividend with its current cash flow. The market often looks at momentum and action while ignore fundamentals.
Kinder Morgan Management: A Cheaper Way To Own Kinder Morgan Partners [View article]
KMR dividends are stock based, and paid out as if it were a stock split. http://bit.ly/vVgWWe
"Distributions to KMR shareholders, which are paid in the form of additional shares, are based on the amount of the cash distributions paid to KMP unitholders." http://bit.ly/Zk3vOh
Atlantic Power: A Tale Of Misinformation [View article]
5+,
AT did not provide the information necessary to determine the safety of its dividend its its investor presentations. Do you think it is reasonable that an investor would of had to look into a 2 year old 10k filing to figure this out? Why was the loss cash flow amount not disclosed when AT issues its press release about the FLA asset sales?
How Safe Is Philip Morris' Dividend? [View article]
So, this article is about PM dividend's safety, yet there is no mention of the payout ratio? That seems odd. IMO, PM has the safest dividend amongst the tobacco stocks, plus it has the best growth prospects. This is not to say that the others, such as MO, LO, or RAI are not good investments, though since they have only the domestic US market, they carry a tad more risk.
Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
Good informative article RS.
So, NLY is looking to outsource its management? This seems odd, as most of these employees are already on NLY's payroll. Short-term, this would lower expenses, but long-term it would raise them. Call me paranoid, but this seems like a backdoor pay raise.
Don't Be Fooled By Pitney Bowes' 11% Dividend Yield [View article]
Sean,
I have written about PBI in the past, so I speak from experience: your analysis of PBI left a lot to be desired. Why not mention PBI greatest strength: FCF? You do know that PBI was until recently was trading at very depressed levels and that it was being priced as if it were heading to insolvency? Did you know that the dividend for PBI is covered by EPS and FCF? no mention of this...
While PBI is not a long-term investment, PBI was a screaming buy at under $11.
Atlantic Power: A Tale Of Misinformation [View article]
I feel like I need to defend High yield stocks here:
I own and have owned many high yield stocks, indeed they make up over 50% of my portfolio. High yield stocks are risky though, that is why I keep positions small.
However, with AT, I feel as if they were misleading investors, including myself. That is why I took the time to research and write this. Investors need to see just how unsustainable the dividend really was. Even after cutting the dividend 65%, the payout ratio is still 100%...
Atlantic Power: A Tale Of Misinformation [View article]
5+, First, I suggest that you read my two recent articles on AT, then tell me, if this was simply a trading mistake?
AT had always presented itself as a high yield stock, that has paid out nearly 100% of cash flow as dividend. However, they did not bother to mention that nearly 50% of cash flow was concentrated in two projects, while those same projects only represented 20% of adjusted EBITDA.
Also, how do you determine what a company is "SUPPOSED" to yield? You're basically in here saying "I told you so".
Atlantic Power Cuts Dividend And Adopts A 'Poison Pill' Plan [View article]
David,
I sold my shares for $7.00, which is pretty much where it has traded for much of the day. What made me decide to sell? I was listening to the Q4 CC and the CEO made me feel as if he did not grasp the seriousness of the dividend cut. I have listened to CEO explain dividend cuts before, the better ones show empathy and explain the reasoning. AT's CEO did none of that. I set a limit order as fast as I could.
Why ConocoPhillips' Cash Flow Is Starting To Worry Us [View article]
Cash flow is worrying? COP is funding expansion in North America with the sales of over seas assets. They are also making a major push into heavy oil. COP is a cash flow machine and the share price is hardly expensive. As for dividend growth, recall that they spun off a large chunk of their business with PSX and still kept the same dividend.
Northern Tier Energy: A Strategically Located Refiner With A 20% Yield [View article]
Talk about a fast response, NTI just announced this:
RIDGEFIELD, Conn., April 3, 2013 /PRNewswire/ -- Northern Tier Energy LP (NYSE: NTI) ("Northern Tier Energy (NTI)" or the "Company&... is providing the Company's current assessment on the EPA's proposed regulation that gasoline contain no more than 10 parts per million of sulfur on an annual average basis by January 1, 2017. Northern Tier Energy's Saint Paul Park Refinery produces its gasoline in accordance with current regulatory standards and intends to fully comply with any updated standards. Management's current assessment is that the proposed updated standard will not have a material financial impact to the Company. Preliminary engineering assessments predict that no capital spending will be required to comply with the new standards.
Dividend Champions For April 2013 [View article]
Thank you for your hard working on maintaining this wonderful list. It is an invaluable reference for my research!
Don't Let Dividend Yield Drive Your Investment Decision [View article]
The dividend cut for CLF was widely expected. I think what really spooked investors was the share issuance. CLF was obviously in need of cash. Both those decisions destroyed shareholder wealth and goodwill.
The dividend cut which shocked me the most was CTL. They had been showing signs of turning the corner, increasing revenues, and diversifying away from landlands. They have spent large sums on capex, building out internet subscribers, data centers, and fiber to tower. 2013 guidance for free cash flow covered the dividend. They blamed an eventually cash flow decline due to "taxes" in 2015, which I find to be a rather lacking excuse. How could they afford a 2yr, $2B buyback (which is 1B per year) and not the full dividend? I think CTL forgot who owns there stock and why they own it. CTL is/was an income stock. That they sacrifice their dividend stock "cred" is astonishing.
Pengrowth Energy: A 53% Discount To Book Value Plus A 12% Yield [View article]
I agree that the market is pricing in a dividend cut. However, the current dividend is only 40% of funds from operations. PGH can actually cover its maintenance capex and dividend with its current cash flow. The market often looks at momentum and action while ignore fundamentals.
Kinder Morgan Management: A Cheaper Way To Own Kinder Morgan Partners [View article]
"Distributions to KMR shareholders, which are paid in the form of additional shares, are based on the amount of the cash distributions paid to KMP unitholders." http://bit.ly/Zk3vOh
With Its Recent Price Decline, Prospect Capital Is On Sale [View article]
Atlantic Power: A Tale Of Misinformation [View article]
AT did not provide the information necessary to determine the safety of its dividend its its investor presentations. Do you think it is reasonable that an investor would of had to look into a 2 year old 10k filing to figure this out? Why was the loss cash flow amount not disclosed when AT issues its press release about the FLA asset sales?
Avoid Atlantic Power [View article]
How Safe Is Philip Morris' Dividend? [View article]
Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
So, NLY is looking to outsource its management? This seems odd, as most of these employees are already on NLY's payroll. Short-term, this would lower expenses, but long-term it would raise them. Call me paranoid, but this seems like a backdoor pay raise.
Don't Be Fooled By Pitney Bowes' 11% Dividend Yield [View article]
I have written about PBI in the past, so I speak from experience: your analysis of PBI left a lot to be desired. Why not mention PBI greatest strength: FCF? You do know that PBI was until recently was trading at very depressed levels and that it was being priced as if it were heading to insolvency? Did you know that the dividend for PBI is covered by EPS and FCF? no mention of this...
While PBI is not a long-term investment, PBI was a screaming buy at under $11.
Atlantic Power: A Tale Of Misinformation [View article]
I own and have owned many high yield stocks, indeed they make up over 50% of my portfolio. High yield stocks are risky though, that is why I keep positions small.
However, with AT, I feel as if they were misleading investors, including myself. That is why I took the time to research and write this. Investors need to see just how unsustainable the dividend really was. Even after cutting the dividend 65%, the payout ratio is still 100%...
Atlantic Power: A Tale Of Misinformation [View article]
First, I suggest that you read my two recent articles on AT, then tell me, if this was simply a trading mistake?
AT had always presented itself as a high yield stock, that has paid out nearly 100% of cash flow as dividend. However, they did not bother to mention that nearly 50% of cash flow was concentrated in two projects, while those same projects only represented 20% of adjusted EBITDA.
Also, how do you determine what a company is "SUPPOSED" to yield? You're basically in here saying "I told you so".
Atlantic Power Cuts Dividend And Adopts A 'Poison Pill' Plan [View article]
I sold my shares for $7.00, which is pretty much where it has traded for much of the day. What made me decide to sell? I was listening to the Q4 CC and the CEO made me feel as if he did not grasp the seriousness of the dividend cut. I have listened to CEO explain dividend cuts before, the better ones show empathy and explain the reasoning. AT's CEO did none of that. I set a limit order as fast as I could.
Why ConocoPhillips' Cash Flow Is Starting To Worry Us [View article]
Northern Tier Energy: A Strategically Located Refiner With A 20% Yield [View article]
RIDGEFIELD, Conn., April 3, 2013 /PRNewswire/ -- Northern Tier Energy LP (NYSE: NTI) ("Northern Tier Energy (NTI)" or the "Company&... is providing the Company's current assessment on the EPA's proposed regulation that gasoline contain no more than 10 parts per million of sulfur on an annual average basis by January 1, 2017. Northern Tier Energy's Saint Paul Park Refinery produces its gasoline in accordance with current regulatory standards and intends to fully comply with any updated standards. Management's current assessment is that the proposed updated standard will not have a material financial impact to the Company. Preliminary engineering assessments predict that no capital spending will be required to comply with the new standards.
http://bit.ly/XYav3J