TSX:BPF.UN - Post by User
Comment by
Sadie222on Dec 29, 2019 3:07am
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Post# 30498313
RE:RE:RE:RE:What do you think will happen next with BPF.UN?
RE:RE:RE:RE:What do you think will happen next with BPF.UN?A 10% cut to div would result in a yield that is still north of 9% at today’s SP while bringing the payout back comfortably under 100%. I think the SP wouldn’t be hit too hard. They do need some good news, though, or the sag will resume.
Borrow for NCIB? No way. Would the prospectus even allow that? I could see borrowing to acquire another royalty stream, maybe, if the prospectus allows that. Unlikely, though.
imho
Tony101 wrote: Perhaps it will eventually cut dividends to balance out distributions, but cutting div will drive down SP. The current decline in sales happens in an economy when we aren't exactly in a recession yet. If the economy goes into a full-blown recession, the sales will be worse and so do SP. Along with a potential div cut, it's gonna hurt share price.
Considering debt is cheap, would you say it is likely to borrow to do both a normal-course issuer bid (or substantial one) AND a div cut? to balance out the neg and pos impacts.