No need to rush back inNo need to rush back in. The stock price has only two directions at this point. Flat or down. A 40% dividend cut needs a 67% raise to restore it to previous levels. This won't happen over a short term. Once the dividend is cut the climb back up is slow. A 10% dividend raise per year will take 5 years to reach pre-cut levels and you can forget about a dividend increase until the capital requirements of the KP modernization (if the deal goes through) are completed. So probably 7 years before the old dividend level is reached.
They issued equity to partially fund the KP takeover. This new equity generates no revenue but collects dividends. Now they plan on selling $1B of revenue producing assets which even with interest expense savings from debt reduction will still reduce cash flow.
Why buy this one at these levels with no possibilty of dividend growth for several years when solid companies like TRP, ENB and some of the banks are yielding 6% all with dividend growth. I'll look at it when it gets below $7 CAD but only if the KP deal gets terminated.