RE:Update on incomeThanks Jay - your napkin looks similar to mine. 1cent is prudent.
Flooding and well declines have hit Cooper basin / beach.
Just sitting on a few of these, it's a taxable account so minimal trading.
Chua chua is not material, and there is nothing from Santos. This makes the math a little easier. There are much worse places to park some cash. Rosier is not going to kill his golden goose.
All the best
Cheers
Rad10
JayBanks wrote: Aussie Dollar has been weakening to Canadian lately which doesn't help this company...
2,022,213 x .89 (AUD/CAD) = 1,799,769.57 / 1,055,798.74 (1 penny dividend cost) = 1.7
The despite the currency weakness, lower oil and higher decline rates, coverage has increased a bit compared to last quarter was 1.3, combined we are bang on the average of 1.5 cents per quarter which is my expectations and also what they have been paying out lately... While that is some positive news as coverage is about bang on 100% but it's not gaining value just passing through, Oil price obviously has also been declining more recently.
I wouldn't be surprised if the payout stays flat for anouther quarter because of numbers, but it would break the 2-1-2-1 trend the past year...
The Treasury has 3.8 million in it now which is worth about 3.6 cents per share.
Forward yeild (on 4 cents / .38) = 10.52%
Expected yeild (on 6 cents / .38) = 15.79%
@ 30 cents (or closer to it) this will become a very interesting Risk/Reward and I might jump back in if we are maintaining coverage of 100% or better