RE:RE:RE:RE:Needed to increase dividend and buybacks !!GICs now yielding 4.1%.
https://www.oaken.com/gic-rates/?utm_source=google&utm_medium=display&gclid=EAIaIQobChMIgsWt9Zm59wIVRUHVCh1wCQCZEAEYASAAEgKwY_D_BwE
We all know what's going to happen with RATES..... They are going to SPIKE up...WAY UP.
All just my opinion/view/thinking
Puma1back wrote: in the current statements for March 31st 2022, these guys are burning $9 million a quater on preferred share dividends.
instead of buying $1 billion or about 50 million of the almost 2 billion common shares, they could have repurchased all of these preferred shares and had $150 million still in the bank. Its crazy - 50 million less shares reduces the forward dividend draw by about $25 million a year. For less $ they could have reduced the dividend draw by $36 million a year - a 50% increase in the roi.
Puma1back wrote: The risk premiums imbedded in some of those preferred shares suggests they should redeem them when they look at their capital allocations.
the series 7 G shares have an almost 4% premium over the Federal 5 year rate & was priced when it was just Husky Oil - a much riskier company than the combined CVE.
the dividends are after tax and there is now a structure that lets them basically convert this preferred equity into a deductible interest instrument. Or just redeem the works - only about $800 million of fairly expensive cost of capital.