TSX:CUS.DB.D - Post by User
Comment by
Nawaralsaadion Apr 09, 2014 1:12pm
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Post# 22430572
RE:RE:RE:RE:from Scotia Daily Edge
RE:RE:RE:RE:from Scotia Daily Edge A dividend cut won’t change anything in regards to the value of the chemical business or NATO, yes it may create a trading opportunity and some volatility, but unlike other situations I have seen with dividend cuts, any such cut if it was to take place would be quite limited in time, since the cash flow to allow for a higher dividend will be generated by Q4. I don’t believe the odds of a cut are in excess of 50%,so yes the risk of a cut is real, but it is not fatal and will only be temporary. After all CUS is offering a potential return of 30% to 40% in a couple of quarters (ex-the dividend) such return doesn’t come without some risk and uncertainty.
Regards,
Nawar