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Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B



TSX:HSE.PR.B - Post by User

Post by RetailRubeon Jan 30, 2010 10:00pm
437 Views
Post# 16736596

I bought back

I bought backI sold Husky when it got above $30 recently, but I could not resist buying back in last week when it got down into the mid-$26 range. It now yields around 4.5%. I want the dividend even though it is supposed to underperform, if you listen to all the analysts. Boring is ok. Fits my personality.

There is lots I am nervous about. Upcoming earnings likely will show poorly on the refining side, after reading Conoco's results. And when the US dollar carry-trade unwinds because of China monetary tightening, commodity prices and WTI will dive. Then there are new position limits coming up on speculative trading in the US which could also force traders to sell their long WTI positions.

On the positive side, the next dividend record date is mid-February, so I get that help. And big strategic decisions on selling off China-area assets are getting closer (mid-year?). Maybe management changes will be announced along with year-end results?

Tonight I looked at another boring company: Imperial Oil. I compared Husky (in Cdn$) to XOM-N (in US$, sorry) and found the following graph:

https://investdb.theglobeandmail.com/invest/investSQL/gx.show_chart?pl_comp_id=165572&pl_errmsg=&iaction=Chart&pl_primary_listing=HSE-T+xom-n&iaction=Chart&pl_additional_listing=0&pl_period=60W&pl_chart_type=+&pl_sh_movement=0&pl_long_movement=0


It shows HSE was doing better than XOM for many years until HSE dropped their dividend. I think if I will put HSE away in my long-term portfolio, maybe someday the dividend will come back. Maybe Mr. Li will need a bit more income and will order them to increase it. ;-)



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