LIQUOR STORES NA LTD 4.70 PCT DEBS T.LIQ.DB.B

RE:Cut The Dividend Already.....

[Goldbuggy1]

FootballFan1 wrote:
Last year LIQ reported their Q4 results in early March....That Q covers the Christmas season so if they don't match or beat last year's EPS and other key figures, this stock might continue to get whacked......LIQ seems to be tracking the price of oil - justified or not - perhaps because most of their stores are in Alberta - Who knows if those left in Alberta are still drinking it up and buying their booze from a LIQ location, but the proof will be in the Q result numbers........Another concern: the LIQ stores themselves look very nice from the pictures, but are people willing to pay a premium for the same booze...?.....These exclusive extras like beer and wine tasting, private labels, etc. may not cut it......who cares where you buy your Listerine, Cheerios, or Jack Daniels from - it's the same product - so I think most people will buy these items from the retailer that charges the least for it in their area..........The market seems to be screaming for LIQ to cut the dividend already...... $1.08 / $6.80 = over 15% yield at today's closing price......does anyone think this dividend is sustainable going forward.....?

With this Stock Price cut in half since last Q4 Reporting it is pretty obvious that the market does not expect LIQ to match or beat last years EPS. It is more of a question of how bad it is and not how good it will be. Is this Dividend Sustainable? I can't count over the years when I thought it wasn't only to be fooled by them, and showed it was. The last time I would have bet my Grandmother that it wasn't. Only to find out later that the company sold shares at $14.85 and had way more cash then they needed. Instead of the stock going own, which it normally does at a time like this, it went up. Fooling me again. What needs to be considered in this conversation is that since the IPO of shares in 2004, LIQ has paid a Monthly Dividend every month. That gives them a long history in Dividend Paying but also a perfect record. One I am sure they would want to keep. So to answer your question, yes I think this Dividend is Sustainable through Creative Financing.