TSX:TNT.UN - Post by User
Comment by
pandscaon Dec 20, 2022 2:50pm
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Post# 35182868
RE:RE:Dividend cut coming ?
RE:RE:Dividend cut coming ?my2pennies wrote: What one earth are you guys going on about?!?
Decisions to raise or cut a REITs dividend are made based the payout ratio on the current FFO (usually the adjusted FFO) and forecasts of future AFFOs. And TNTs year to date AFFO increases provides confidence in TNT. By
The AFFO payout ratio for Q3 was 97% so not ideal but far from dividend cutting territory. Using income alone a REIT to determine if the dividend is sustainable is, for lack of a better term, foolish.
I agree.
If you also look at the history of TNT, they've gone for relatively long periods of time at 0.0495 while the SP was this low (and even lower) withouot cutting the DIV. The only time they ever cut the div in the whole history of the stock was one month after introduction.
I've just bought more and will continue to pick up more at these prices.