RE:RE:The Dividend will be cut Guaranteed !! I respectfully disagree. I have not crunched the #'s but they are not going to pay a 7-8% dividend for too long with higher interest rates on debt.
Capharnaum wrote: There is no reason for the dividend to be cut. There is a lag between costs and revenues in the regulated business, but costs are catched up on eventually so there is going to be a reversal with higher net income down the road.
Higher cost of debt will be integrated in the regulated rates and if the rates stay high they'll even get higher return rates on capital as well.
Adjusted FFO (p.11) increased in the quarter (0.30 per share compared to 0.27 per share last year). Payout ratio based on Adjusted FFO was 60% in Q3 2022 compared to 63% in Q3 2021.
My main worry remains the same as the one in my last posts on this forum: the effect of the current higher interest rates on their longer-term targets as it increases the costs of the projects they were planning. They punted that forward to early 2023, unfortunately.