RE:RE:lets all get a gripNorthSun wrote: d_trump wrote: Yes their payout ratio is about 120% - but like I have said before, a significant amount of their capex is either for growth or cost savings (ie investments made to increase FUTURE cash flow) and therefore this amount of capex should be excluded from the payout ratio calculation. Dividend decisions should be based on the medium/long term outlook.....only companies with excessive leverage need to take a shorter term view (and their dividend policies are largely dicated by their lenders).
Your statement is absolutely correct, that is why, if need be they can cut back on their hugh capex budget, to maintain their dividend and still have a significant capex budget.
It's obvious to everyone right now that CPG is a screaming buy.
Even if it cuts dividend 50%, this is still a 7% dividend from a super strong, super solid, low-cost oil company that is basically unbeatable.