RE:Dividend cutJust an article about recent dividend cuts. Take it for what it's worth......... Energy dividends 'a big farce' as Crescent Point cuts payout Jameson Berkow, Western Bureau Chief, BNN 2:35 PM, E.T. | August 13, 2015 Energy and Resources Tags: Crescent Point Energy, Investing, Jameson Berkow Follow this CALGARY ANALYSIS: Crescent Point is not the first Canadian energy company to cut its dividend amid an ongoing downturn and it will likely be far from the last. The conventional Canadian oil producer has never previously reduced its payout and Scott Saxberg, the companys chief executive officer, told BNN in March he expected to have no issue making those 23 cent per share monthly payouts at least through the end of this year. However, with a yield approaching 15 percent and a share count that grew by 18 million in order to cover the purchase of Legacy Oil + Gas in the second quarter, most market watchers believe Crescent Point had little choice but to institute a 57 percent cut taking the dividend down to 10 cents per share. Michael Harvey at RBC Capital Markets called the decision a prudent move in a tough tape. Kyle Preston at National Bank Financial was more bluntly positive in calling it the right thing to do, while Thomas Matthews at AltaCorp Capital even went as far as saying he expects the move will encourage institutional investors to return to the stock. Despite the positive rhetoric, every one of the aforementioned analysts reduced their price targets on Crescent Points stock. Such is the reality of a prolonged period of depressed oil and gas prices that also played into Cenovuss decision to cut its dividend two weeks ago. Indeed, Moodys Investors Service warned Thursday that prices would not meaningfully rebound beyond $60 US per barrel for West Texas Intermediate (WTI) until nearly the end of this decade. In light of languishing hopes of a more rapid rebound in commodity prices and the unprecedented move by Crescent Point, three Calgary-based analysts who asked not to be identified by name pointed to another half a dozen dividend-paying Canadian energy companies they expect will also have to cut their dividends in the near future. ANALYSTS SAY THESE COMPANIES MAY CUT DIVIDENDS: Baytex (BTE.TO -10.29%) Enerplus (ERF.TO -6.59%) Surge (SGY.TO -2.99%) TORC (TOG.TO -8.61%) Journey (JOY.TO -2.86%) Penn West (PWT.TO -9.72%) There are even some oil patch veterans who believe the current environment will give cause for energy dividends to nearly go the way of the dodo. Rafi Tahmazian, partner and energy portfolio manager with Canoe Financial, told BNN on Thursday the rise of dividend-paying entities in Calgary starting in 2009 has been a big farce. He argues companies were convinced to offer dividends by their banks in order to send their share prices higher, even if the decision put significant pressure on their balance sheets. Since the crash in crude oil prices began in earnest last October, Tahmazian said those dividends are now kicking them in the teeth. The reality is [companies] should never have been doing a divvy if they were spending multiples of cash flow to grow, Tahmazian said, adding the only type of dividends that are sustainable in the present environment are those from companies with a payout ratio of 100 percent or lower such as Whitecap Resources, PrairieSky Royalty and Cardinal Energy. Other producers, he said, would be wise to spend more money on growing their assets, especially with debt becoming such a challenge for dividend-paying companies. Get rid of those divvys now, Tahmazian said. Dont bring them back. Jameson Berkow is BNNs Western Bureau Chief. Follow him on Twitter @crudereporter