Incitec Pivot Ltd T.IPL

RE:RE:RE:RE:RE:Adding

[SargeX]

Hey Ram

Quite an interesting observation. My wife & I are retirees with no company pensons so we're living strictly off dividend income, CPP, and OAS. We are 100% TSX listed dividend income/growth stocks in 5 sectos only - banks. utilities, midstream, telecom, and REITs. I think that of the 5, the main one for issuing debt to grow is midstream. I'm not sure how I feel about itthe deby issuance as if a company does it right, the model can work. A few of the utility companies seem very successful at it.

Anyway. I can appreciate your concern. Luckily my wife & I have more dividend income than we need to cover all our expenses, so the capital losses or gains only factor into the size of the inheritance we leave behind.

I've had some doubts about IPL since they announced doing Hearltnad without a partner but I think the worst is behind us and that Heartland will work out.

Good luck with whatever you decide
  Sarge

McRambus wrote:

mrbb wrote:

with GIC rates near zero, i don't why dividend stocks are getting hit everywhere. I see reits and bank stocks aren't doing great either. Where are people putting their money to work?
 

TheBridge wrote: IPL is not going to stay in the $12-13 range forever and it's going to take a long time, likely 3 to 5 years to climb back into the $30 range and higher. Unless the world continues to have events that create upheaval in the economies. When Hearland opens up in just over a year IPL will have another source of revenue in addition to their regular sources. The remainer of the Europen storage will also get sold and debt will be further reduced. As revenue increases and debt is reduced the dividend will return. The first big step will be to regain the $18 share price range and as it becomes solidified we should be able to enter and grow in the $20 range. If crude prices begin to rise and sales in the petro-chemical end grow we should eventually be int he $30 range. This is of course my opinion and the timelines could vary as world events could vary. Can I gaurantee that all this will come to fruition, no but I do believe things for IPL will improve as it will for the world economies.

I'm afraid the dividend Ponzi scheme that is Canadian dividend stocks has come to an abrupt end. Basically many companies took on debt to increase payouts but this has reached it's end stage and what you have left is blue chip companies drowning in debt. In IPL case it is even worse as anything involved with fossil fuels is getting killed as institutions sell, never to return. I am also an income seeker and my portfoilio has been decimated, the payouts have been great but the capital losses have been even greater. So I'm actually worse off financially. With IPL, dunno how long I can hold on, trying to wait for the PHD/PP plant but it is down every single day, starts the day down 2-3% then struggles to gain it back. If nothing improves in the next 2 months I'll be taking a ton of capital losses, the era of dividend is over.