Incitec Pivot Ltd T.IPL

RE:RE:RE:RE:RE:Divvy increase...

[blade86ca]

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