RE:CIBC downgrade and speculation on dividend cutTheir projected dividend cut would offer a similar yield to that of ACI. Possibly that is where CIBC is getting their numbers.
mickeymouse wrote: CIBC just published a report speculating a dividend cut is coming - they also downgraded their price target to 24.00.
Seems to be some contradictions in the report as evidenced by this statement:
"We expect the company to cut the dividend 40% (to 1.32 share annualized) rather than pay out a yield of over 10% while running a premium DRIP"
Sounds pretty negative but then the next sentence is:
"even though we can see the existing dividend reaching the company's targeted 50-60% FFO range"
So the company says they want to keep the payout ratio in this FFO range - the analyst admits the company can do that but still puts forth a scenario with a drastic dividend cut.
He could have suggested that they discontinue the premium DRIP program but instead went straight for the scare tactic of a dividend cut - and a pretty drastic one at that.
If anyone else has anlayst updates after the IPO could you please post them or at least summarize their contents.