TSX:AD.DB.A - Post by User
Comment by
mickeymouseon Jul 28, 2021 5:12pm
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Post# 33618196
RE:RE:payout ratio and book value
RE:RE:payout ratio and book valueSunsetGrill wrote: I would not count on that Minnie - they just changed the direction/mandate of the company to get the ratio down to 60% and not pay out all their free cash flow. They are not going to jeopradize that by hicking it so soon. IMHO that would send the wrong signal to the street that they are going back to old ways. They are going to build a base here and get some positive cash flow to play with and decide where best to put it. That would not be a divy increase which would damage exactly what they are trying to build. Maybe a bump when/if collar resets occur in Jan 22.
Im perfectly fine in them maintaining divy and building a war chest or paying down their debt they use to pay the divy. Its a new company with a new mandate. 20% hike in sharprice beats a 20% hike in divy ANYDAY.
Very good results and a DISTIRBUTION INCREASE announced for next quarter - payout ratio still in the 65% range even with the increase that some people were very sure would not happen.
mickeymouse wrote: From the July 7th news release:
"It is estimated that the cash flows associated with the full payments from PF will decrease the trusts run rate payout ratio by over 4% to between 55% and 60%"
Very postitive news no matter how PH (Scotia analyst) tries to spin it - he is the only one of 8 analysts who does not rate Alaris as a buy or outperform.
When you compare the payout ratio and yield for Alaris to the other choices in the dividend universe it stacks up very well.
In adddition to the PF distributions being restarted the addiitonal bump in the book value of their investment in CCom is a nice suprise - $7.2 Million USD more than what it was valued at the end of Q1 this year.
"Creating the optimal dividend stream for investors" is the main statement from the investor tab on their website - with the payout ratio where it is don't be suprised if there is a dividend bump announced next quarter.