OTCPK:ICPVF - Post by User
Post by
uncleblackieon Oct 30, 2019 4:13pm
226 Views
Post# 30288548
Safe dividend over the longer term?
Safe dividend over the longer term?
I've been pondering buying this stock for a while now as a possible long term hold but am unsure if the dividend is sustainable at it's current payout ratio of 101%?
https://www.marketbeat.com/stocks/TSE/IPL/dividend/
My concern stems from the fact that they are trying to go it alone with no partners in building this new petrochemical plant. Granted, they will be receiving over a hundred mil in gov credits however without an equity injection from a partner in this venture my feeling is that given the high payout ratio coupled with what may be the need to conserve capital for this expansion has me worried the dividend may need to be cut or even suspended to fund this growth.
I also understand that when the Viking connector comes online mid 2020 it will significantly increase revenue and cash flow however the high current dividend payout ratio coupled with a possible need to conserve cash has me concerned that the dividend even with the increased revenue from Viking may be cut anyway at least in the short term.
Thoughts???