OTCPK:CSUWF - Post by User
Comment by
Lansing76on Mar 29, 2018 12:41pm
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Post# 27803452
RE:Lowering div is death of a stock.
RE:Lowering div is death of a stock.My response to the question by another poster of whether they could cut the dividend was basically stating that interest rates could be the trigger if they did. Is it likely? No. Is it possible? Of course. To think it can't happen is not prudent. They are in a regulated industry and while I see ECI to be a stable long term investment, the biggest risk is rising rates. Thus the panic in dividend stocks as of late. And, consumers water heater cut their distribution a lot about 10 years ago, and stock price is now 4 to 5 times higher. They cut due to debt and attrition. A company paying a 6, 7 or 8% dividend is wasting money in my view. In fact if ECI cut their dividend to zero the company would become more valuable every month with funds invested in ECI. In no way am I suggesting a cut. They won't anytime in the foreseeable future. But dividends are not what values the company.