OTCPK:ICPVF - Post by User
Comment by
blade86caon Feb 22, 2016 1:26pm
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Post# 24582244
RE:RE:RE:RE:RE:Divvy increase...
RE:RE:RE:RE:RE:Divvy increase...Lundu... I agree that a standard should be followed when interpretting payout ratios for all dividend payers , energy and non-energy but maybe the reason there is divergence between them is because energy companies have huge capex costs that fluctutate alot relative to say a bank's capex costs which is basically very minimal.
Interestingly enough basically IPL actually does use their net income (which takes those non cash items into account ) to show how sustainable their dividend was ( just as you say in your comment ) and based on their own values Q1 Q2 and Q3 of 2015 they were not able to sustain the dividend lol (See page 30 of latest MD&A )
You know its interesting to think about because if every energy company calculated their total payout ratio like this , no one would ever have sustainable dividends lol except for the company with either downstream operations or infrastructre companies , they probably would just barely cover dividends