RE:RE:SGY did the right thingronaldco wrote: I know CPG has kept their dividend intact even in the crash of 2008, and I know they have been growing by acquisition but I don't understand why they need such a high dividend. Everytime they issue a dividend, there share count increase. CPG looks like a well runned company and might be able to keep on paying that hefty dividend, but again, why does it have to be so high. When investing, I like to take away as much risk as possible and if a company is paying out more money than is coming in, to me I don't need that extra risk. I realize CPG can keep on paying that dividend for years without any problem but I always ask myself what if. Just a 25% cut would still yield 8% at today's price and 6% if it would be trading at 35$.
And the stock would be down a years worth of dividends the next day.
With people needing income cutting would be the kiss of death.
Also the yeild is artifically high because of the SP it will come down soon as the SP rises.
I don't agree they are spending more than they take in , some of their expendatures are for increased value as capital expenditures.
JMHO