OTCPK:ICPVF - Post by User
Post by
marketsenseon Mar 16, 2020 3:06pm
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Post# 30813926
Dividend
DividendI can see a cut in the dividend if Covid19 lasts through to the summer which is a very real
possibility. A complete suspension would be devastating to the the s/p and shareholders
IMO. That would be the worst scenario. IPL could drop another 50% in that case.
The good side of a cut and even a total suspensioni is, its a good defensive move to shore
up the balance sheet and may be accepted by the market as a prudent move on behalf of
mgmt. Short term, devastating but long term very positive. Who knows, it could shorten
recovery time in the s/p if some risk were eliminated by a dividend cut. Bottom line is it more
important to preserve finances and balance sheet or catering to the short term interests of
shareholders?
Being a holder, I hate to see my investment decline even further with cuts but I also see my investment may be better served in the long term by doing dividend cuts. I don't have the answer
to this issue but I'm sure mgmt is grappling with this as I post. Its not the end of the world if
IPL had to take a step backward in order to survive and thrive later on IMO. This is really tough
on all dividend payers and their shareholders right now.