OTCPK:NNVUF - Post by User
Comment by
Johnnysbackon Feb 22, 2017 8:57am
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Post# 25876097
RE:Will NVU raise distribution later this year
RE:Will NVU raise distribution later this yearhroark7 wrote: NVU wants to keep the payout ratio at around 70%.
The payout ratio is in the low 70's and it's been steadily going down.
The way things look, would not be surprised if it's below 70% by end of year.
NVU is also component of CDZ, the dividend aristocrat ETF.
To stay in the CDZ, a company needs to raise distribution every 2 years at least.
If NVU does not raise, they could be kicked out of the ETF.
Considering that there's about $33m worth of NVU in CDZ, if they don't raise distribution that would be a lot of selling. I expect management will want to stay in.
If they raise the distribution by 3%, the monthly distribution goes from $0.1358 to an even 14 cents per share. 3% is also in line with their previous raises.
If I were to guess, NVU should raise their distrbution 3% before end of year. Thoughts?
No one else commented so I will... I think they can afford to raise it 3% and that would be a reasonable amount to raise. Having an increasing dividend is attractive to investors..