TSX:CUS.DB.D - Post by User
Post by
Serge001on Apr 29, 2014 4:48pm
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Post# 22504267
Cutting Dividend ?
Cutting Dividend ?I see that CUS cut its distributions from about 85 cents in 2006-2007 to 59 cents in 2008 and then to 55 cents after that. At that time they were a "mutual fund trust". Why is it so unlikely that they would not consider that again, once they have already done so in the past?
Despite the BOD, Fidelity, and Ned's desire to maintain a modicum of stability and prudent management, I would have thought that a new CEO would actually gain ground for the stock by a show of strong cost cutting (dividend included) and return to share growth. Therefore a 40/60 odds of a div cut does not seem so unlikely to me. Maybe the BOD claims to not want that but I think their desire to restore confidence could override that hesitation.
BTW I have entertained a low ball entry of 4.50 with the assumption of a possible 10% downside but 30% upside aside from the dividend (if not cut).
Thoughts?