Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

What does a Sustainable Dividend look like for HSE?

[Olympic]

At the investor day there were key assumptions on the future price of oil (e.g. some slides use $50/bbl) and, while maintaining a caveat that dividends are a board decision, management did signal in the Q&A that there is room for both sustainable capex and a cash dividend.  Management clearly signaled a desire to reinstate a 'sustainable' dividend and suggested in todays market not to expect the same amount as the 2015 dividend.  

Since investor day several analysts have commented and reaffirmed their investment positions. Credit Suisse has suggested that a 2.5% cash dividend yield would cost $400 million annually, TD suggests a sustainable oil price of $53-55/bbl is key for dividend reinstatement, whereas others are silent.  

Any insight or comment?

[pablo87]

If you're looking for dividend, you can't count on this company.  Even when they reinstate, they'll cut it back to nil at the first sign of market downturn. They simply don't care enough for the minority (30%) shareholders (there is not a single Director out of 17!!! representing the 30% - from 30% point of view, Husky has no independent directors).

[justlooking4]

I have lost over 30 % of my initial investment in HSE over the past three years. It is the worst stock in my portfolio by a long shot. The majority owner simply does not care about the retail investors, it is very clear to me. If this dog were to ever hit my cost, I would sell in a heartbeat. What a disaster for me.

[bullmrkt89]

Well $15 on this thing seems to be the bottom looking st the charts the last 2 years. Very good solid support. I think 15 is a good buy at this point can't go wrong. Just don't hope for a dividend anytime soon 

[pablo87]

Fair @bull, they have very good assets. Any analyst that talks dividend and HSE in the same breathe loses all credibility.

[Scottie99]

This post has been removed in accordance with Community Policy

[mrbb]

that's a long post there scottie99 but you said nothing of value. When some of us post facts you call us spinners. When there's no news to post and have us ignore list, you call it deafening quiet. Maybe some of us were too busy shorting oil and trading bitcoin.  I pity the CNQ, SU and CVE shareholders for they own stocks that bought more and overpaid oilsand assets recently