RE:RE:RE:RE:RE:RE:RE:RE:Dividend just DECREASED 56%gentlewolf wrote: Assets sold means loss of revenue and that translates to
a higher payout ratio. I expect projects coming online will
at least partially offset the income loss incurred by the asset
sales. And that hopefully will keep the payout ratio from rising
too far above current level. By 'short while' I meant any increase
of payout ratio resulting from asset disposition will be temporary.
They have already addressed this in the last CC. All of their projections for FFO and Ebitda include all of the planned asset sales. They expect FFO to be 850-900 million. Their Dividend costs 270 million. You can do the math and no it won't change unless they miss their projections drastically. I believe they were extremly conservative with their dividend cut because A) They want to rapidly reduce debt and B) they want to get some dividend increses in and move on from here. It looks to me that they can raise 20-25% and still have one of the lowest pauout ratios in the sector.
I found it funny yesterday to hear all the anaylsts talk about the gold merger yesterday. How it was great that the company could now sell some assets and put that money toward higher return projects. That is exactly what altagas is doing right now. They are selling assets for large multiples of Ebitda and putting that money toward projects that return a higher percentage. They are unlocking the valuse of the underlying assets they own. Which were the exact words of an Anaylst yesterday about the newmont and goldcorp deal.
So why is it a good thing to sell assets and unlock the value of the company for Newmont and not Altagas? It's because Gold is a hot sector right now and utilities are out of favor. The sector was targeted and Altagas was the weakest link like when a lion targets the baby or the hurt animal for a kill. Does that mean what the company did or is doing was wrong. The only way to tell is by looking at the numbers. Yes the number..... They are all that matter BS because when a company increases EPS EBITDA PER SHARE CASH FLOW FFO and the stock declines 60%. It makes zero sense and the market is trading off emotion and people taking advantage of that emotion.