Prescient

Going for High Yield Stocks

Tim,

Your stocks high dividends are worth mentioning ONLY if they are sustainable. An analysis of why some stocks have more sustainable yields is far more interesting than a listing of high yields --- something I can get out of a investment database.

For example, you mentioned that PWE "has been problematic because even though it is maintaining its payout level, the distributions are in Canadian currency and the results have declined over 20% when converted to U.S. dollars.". What you missed is that PWE revenues are in USD, and the decline actually helped INCREASE their recognized revenues in Canadian dollars. Given the low oil prices, this has given PWE the ability to sustain their payout while maintaining a conservative payout ratio.

macsmart has a more interesting comment --- He says that AOD is not leveraged and buying back their shares. That kind of information is valuable to investors interested in capital preservation.