GREY:CRIUF - Post by User
Comment by
deisman03on Nov 22, 2018 11:09am
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Post# 29009794
RE:Dividend Yield (Frist Time Buyer) as Example
RE:Dividend Yield (Frist Time Buyer) as Example In their last report they stated their payout was 147% of cash flow, which is obviously unsustainable for a long period of time.
Obviously if they're bleeding cash above and beyond their ability to pay, they will have justification for cutting the DISTRIBUTION.
That's why some people are concerned.
Usually such a high payout ratio is cut back when it goes on for extended quarters and is often indictative of POOR MANAGEMENT.
They also gave the reasons for that and it's already come back to 90% which is still high but sustainable.
Juste Energy, JE, went through a similar scenario a few years ago. Take a look at their chart. JE went from a $13 average price to below $4 and is only now showing signs of revival. JE's dividend was well over 10% only a few weeks ago. JE also changed it's business model out of the INCOME TRUST to a regular STOCK that pays a dividend, rather than a regulated distribution of positive cash flow by law.
GLTA the good folks here