Alaris Equity Partners Income 5 50 convertible unsecured subordinated Debentures T.AD.UN

Goods results

[pibopibopibopib]

Good but not terrific. Dividend higher, Yeah !

[babedinkleman]

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[TickerTwit]

Yes and no on the dividend. Up 3% in absolute terms, but down in inflation-adjusted terms. Using 7% for inflation, and using "g" to represent the dividend growth rate, the annualized change in buying power of our dividend is: (g-i)/(1+i) = (0.03-0.07)/(1+0.07) = -3.74% Truly, nothing to cheer about. .

[Stonksonlyup90]

It's not all about the dividend... they are plowing capital back into the business with a record level of investments in the last year. ROI on average investment is still very strong. Management is taking a prudent approach to growing the business with a stable dividend 

[TickerTwit]

It depends on your investment goals. If your primary goal is income growth, on average you want to see dividend increases exceed inflation. .

[babedinkleman]

This post has been removed in accordance with Community Policy

[TickerTwit]

SLF just did 4.35% semi-annual (8.9% annualized). CM and BNS have been tracking at about 6% annualized in recent years, and RY at 7%. If you go back 5 years, they're giving you good growth vs inflation (3x for several years in a row). Whether or not they maintain such growth, of course remains uncertain. The last 5 years of Alaris are dismal in comparison. I was hoping Alaris's business

[TickerTwit]

"But the dividend itself is keeping you even or ahead of inflation." The change-in-buying-power calculation shows that the dividend is NOT keeping up with inflation.  Your buying power has fallen 3.74% with the dividend. The dividend is recognized in the formula ("g"). .

[babedinkleman]

This post has been removed in accordance with Community Policy

[TickerTwit]

There isn't enough time left in my cancer-riddled existence to go through all my missed investing opportunities :). My investing goal is income and income growth combined. I want to leave my family a sustainable income that's built on steady-growth enterprises in sectors with high barriers to entry (utilities, banks, telecoms, pipelines). Accordingly, I track dividend growth alongside a

[mickeymouse]

Change in buying power calculation??? Obviously a 3% increase in the distribution is not equivalent to a 7% increase in the CPI - but I guess your are ignoring the fact that the 3% increase brings the total dividend that Alaris is paying out to a little bit over 8%.  The dividend you receive from Alaris returns more than the rate of inflation no matter how many variables you plug into your

[TickerTwit]

"The dividend you receive from Alaris returns more than the rate of inflation no matter how many variables you plug into your equation." If the dividend does not increase at least as fast as inflation, the purchasing power of the dividend falls. This is true no matter what the initial dividend (or yield) is. Inflation is a measure of change, but your initial yield is a fixed value

[mickeymouse]

If the inflation rate is 7% the goods that cost you $100 today will cost you $107 this time next year - If you take that $100 right now and invest it in Alaris you will receive $8 in dividends over the course of the year - so if your original $100 investment stays static for the year you would have $108 - the cost of whatever you are purchasing is $107 - your future purchasing power in a year will

[TickerTwit]

You have $8 income in your example. If that $8 income remains constant, it loses 6.54% of its remaining buying power every year. Your example indicates you intend to collapse the principal before you can no longer buy the original $100 of goods. You have less than five years to do so. At the end of the 5th year you have $140 and goods cost 140.26, and the gap in buying power grows exponentially

[SunsetGrill]

Neither of you have mentioned Justin,s 50% grab of a trust structure payment (if outside a registered account), of Alaris payments. Also, inflation is paid with after tax dollars. 

[Fannyman2883]

True, but that's a good thing. Our health care system is crumbling. 

[SunsetGrill]

WOW - its a well proven fact that giving the govt more money will eventually solve all are problems - even when there is no more to give.  Also, FACT No. 2 - they are the best overseers of money and the most efficient program managers than any other institution on the planet. You must be a nurse? If a fed nurse, they havent even figured out how to pay you (or other FED workers) for five