RE:RE:RE:RE:RE:RE:diversified convertible debentureAlmost everyone cut dividends last year to conserve cash, in fact many are still cut in half or more, this was trading around 3.25- 3.35 pre covid and when things stabilize further than the uncertainty of now the dividend will be back to normal and most likely the price will be too. Every company in this basket is getting better but it's the uncertainty that's holding it here, not the management or the businesses themselves. In fact we have mr.lube among a couple others here who are growing even in this environment. It's a wait and see show me game right now everywhere, I'll take my income and wait.
TickerTwit wrote: Even with something we consider an income stock, the dividend trajectory should meet certain minimum requirements. Keeping pace with inflation is an important one, or else the buying power of the income falls over time.
It doesn't take long for a good dividend-grower to catch and pass a dividend-staller on an inflation-adjusted basis, even if you got a high buy-in yield on the staller. And the staller is almost always higher risk; my two negative-growth(*) stocks both cut dividends last year -- AD and DIV -- while the others all raised theirs (unless prevented by OSFI).
(*) Both AD's and DIV's common equity have shrunk, 2019 EOY vs 2015 EOY. Note that I have excluded the pandemic period.
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maypeters wrote: You are bang on that this is an income stock. There is not much interest from institutional crowd / retail or reddit. But the company does make money and distributes most of it and that amounts to a good amount of consistent income for those who bought it as an income stock.
Any appreciation is pretty much a bonus and it will come in time. Shirtlessnomore wrote: This might sound a bit like a broken record because I've mentioned it a time or two before but this is a damn fine income stock, anyone expecting huge s.p appreciation is in the wrong place, it is no different with all these diversified REIT's sure they are undervalued right now but retail and office have been slaughtered and as you mentioned is there such a thing as "post pandemic"?? At any rate those REIT's for years have nothing but flatline charts but they are sought after for income. If you had spent a measly $180k on DIV when is was very depressed you'd be enjoying about $2k a month, we are talking about a substantial chunk of retirement income for $180K!! you have to first determine what it is you want from a stock and then choose appropriately, huge sp upside this may not have but it certainly checks the box on great stable monthly income. It's very clear that they plan to bring the dividend back to 2 cents so at the current price it will have a 8.6% yeild and these guys have certainly done a great job adding here and there to this dividend thru the years. If its huge s.p appreciation you want look elsewhere but it can't hurt to have some DIV going in your account every single month. Cheers.
TickerTwit wrote: I have increasing doubts about future growth.
I bought in 2015 when the dividend was .01854/m, and even in early 2020 (just after two raises and just before the cut) it hadn't kept up with inflation. If so it would have been above .02/m in 2020/Q1, but instead was .01958 (its historical high in non-constant dollars).
If it's not keeping up with inflation, then, in constant dollars, it's shrinking. If it's just keeping up with inflation, then it's not growing. If it's not growing, my capital should be moved to something else with more growth and/or less risk.
I'm delaying until I see some hints at post-pandemic performance. Or if there's a post-pandemic at all.