RE:RE:RE:RE:RE:One yr from now 15 plus!!jimgeorge wrote: All I'm saying is the market prices dividend paying companies largely on how secure their dividend seems. WCP didn't cut their divy to zero when everything crashed in 2020, or when oil prices tanked in 2014. CJ cut their divy to zero in 2020, they are just about to pay their first dividend in over two years. So the market is a little skeptical, hence the share price is low enough to create an 8% yield. Solid companies with good track records trade around a 4% now.
Nothing fundamental about CJ's operations or finances, the market isn't sold yet that their divy is solid long term...
the market isn't sold on the o&g industry period. All these companies should be way higher than they are. I've made a number of posts over the past month where I mentioned the sustainability of a dividend. In CJ's case, once they clean up the last little bit of debt, they'll get that dividend to about 8 cents a month sustainable in the low 50s wti. And that's really what's of interest to me. WCP was on a similar path. But they kicked it down the road. You look around the industry and companies are going to be either debt free or have very attractive debt levels at 50 wti by early next year. One of the themes that has been talked about in the past 6 months is return of capital. Rightly or wrongly, I believe that by early 2023 if you're not in the "meaningful return of capital" business your shares are going to get punished.
As I initially posted, it comes down to personal objectives and my objectives haven't changed, the company's plan for fcf did