TSX:HOT.DB.V - Post by User
Post by
hawk35on Dec 23, 2018 3:04pm
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Post# 29152174
Divi Cut?
Divi Cut?Fool article today. Lots of concerns that are weighing on the SP. Think management has run out of time and they will be forced to act. And if the bear market is starting HOT will get beat up real bad.
American Hotel
American Hotel Income Properties (TSX:HOT.UN) also pays a massive dividend. Its monthly payout is US$0.054, which translates into a 13.6% yield.
Shares have been battered lately because the company released tepid quarterly numbers.
It also has a debt problem, with its debt-to-assets ratio surpassing 60%.
Other red flags include the company replacing the outgoing CEO with his brother and the long-term problem of more travelers choosing options like AirBnb over traditional hotel rooms.
2018’s payout ratio is expected to be approximately 100%. Management projects the payout ratio will drop to around 95% in 2019 as recently renovated rooms start earning again.
It’s obvious the market doesn’t share the company’s optimism.