RE:Re: fcf/debt ratio@soundandfury: It is not FCF/D ratio that companies are using; it is D/CF. CPG is targeting 1x D/CF. In terms of dividends, what some companies institute are variable dividends. That is, instead of having a set dividend every month/quarter, the exact dividend issued would be determined by the company's management/BoD at the time of issuance. Companies adopting the variable dividend model try to keep the payouts somewhat consistent so as to not disrupt the share price too much.
soundandfury wrote: Did they institute this requirement on their own? Is that the historical measure they used in the past? Will they cancel the dividend each time the ratio is breached in the future?will the fcf/debt ratio dictate future aquisitions and spending to? If not maybe it should to make the future dividends sustainable which should be the goal right?