TSX:INO.UN - Post by User
Comment by
hawk35on May 10, 2022 6:22pm
388 Views
Post# 34672235
RE:Dividend cut coming ?
RE:Dividend cut coming ?I haven't held Inovalis for 3 years now. I have been watching this stock but the payout ratio is way too high. The special dividend they paid a few months back was a red flag since it would have been better spent growing the company. And the share price has never recovered from this special dividend.
The big concern now is a possible rescession because of rising inflation and rising interest rates. Europe is especially vulnerable to this with their dependancy on Russian oil and gas. If a recession happens there will be no choice but to reduce the dividend. My opinion is the risk is very high here.