Enercare, Inc. CSUWF

Lowering div is death of a stock.

[prested]

In my experience companies that lower or eliminate dividends never recover. Investors are very unforgiving. I am sure management is aware of that and, as so wisely stated by others here, there would be no reason to do it. 
  Rumors like this are usually spread by the ignorant or the devious. It is a scare tactic commonly used by short sellers. 
  This company has to be one of the safest on TSE. Current SP is probably due to fears of rising rates, but for Canadians who get the div tax credit the yiled here is better than most at the present price and IMO this is a great time to increase ones position. GLTAL

[Lansing76]

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

[testomax]

"But dividends are not what values the company" So where does the dividend discount model come from then? lol  

[Lansing76]

If the dividend discount model was any good every stock would have the same yield. You can't replace earnings with dividends. Nice use of "LOL".

[tkirk62]

Are you saying that if the yield of a stock is 6-8% that money is better spent buying back stock? It doesn't make sense that if the yield on the stock is 6% they are wasting money but if the yield is 4% they aren't. They are paying out the same amount, it's ionly the share price that changed.