Post by
Hich1205 on Jan 17, 2024 3:05pm
not worth it
10% increase in dividende, really!!! don't they reminber that pre-2020 the dividende was at 10c a month, and the company was more debt leveraged with lower EBITDA and available cash flow.
I think what happened is that the management intend to run the show as corporation not as an income trust. That's more conformatble for them from a cash management perspective, ie. they don't have to stress a lot to earn their pay. And with their arizona investment not on track and may require more capital, they prefer to play it safe and keep all the money in the company. Fair enough, but not what I invested in the first place. I invested in a Business that ditribute a material portion of its available cash flow. Now with a low distribution rate (40-45% of AFFO) and how distribution are taxed (foreign investment + non eligeable dividende) the dividende yield net of taxes is very low and does not justify the investment. Depending on your total income, the yield of 7.5 % (5.5 c monthly) is comparable to a yield of 5 % received from an eligible corporation.
Recap = great Business, but I would only invest if I have some spare space in my RRSP or TSFA