Drop has nothing to do with dividend This stock has only 70 million shares not to mention a payout ratio of 39%! That is ridiculously low. Its debt amount is around 300-350 million which is also really low. They should buy a small refinery like Superior plus did, (or build one). They can get super cheap oil per barrel in Alberta and make gasoline that they can distribute for themselves.
This stock is worth $5.00 book value so i feel this number needs to go up a bit before the stock will increase past $20. That being said, its increasing just shy of $2.00 eps annually. Two and a half years from now the stock book value will be over $10.00 and the stock will breach $20 no problem. And in the mean time i am getting a 6.25% dividend. Stick this in your tfsa and collect the dividend.
I don't think they should increase the dividend at this point because anything over 7% tends to make people think its unsustainable (even though they can easily pay it).
If I was CEO i would keep the dividend where it is for now, continue to pay down debt and make more aquisitions.
Like i stated above, buying or building a small refinery would be really good for this company.
Superior bought one during the collapse and has been making money hand over fist with it since then. Its the golden age of refining as one can buy oil cheap and sell for good profit per liter. Having one in landlocked oil province of Alberta would be brillant.