RE:RE:Opinion on BMO Air miles purchase on DIVThe market is not always right. Time will tell, but if you read their financials, DIV is doing very well. I don't think the net loss is significant at all as I was a non-cash impairment loss, with no impact on cash flows. "
net loss in Q4 2022 and the decrease in net income for the year ended December 31, 2022, were primarily due to the non-cash impairment losses".
A non-cash charge is a write-down or accounting expense that does not involve a cash payment. Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows.
"In Q4 2022 and for the year ended December 31, 2022, the payout ratios were 82.2% and 86.8%, respectively, improvements compared to 83.5% and 89.8% for the same prior periods in 2021. The improvements in the payout ratio for the three months and year ended December 31, 2022, were primarily due to higher distributable cash, partially offset by higher dividends declared per share"
Pay out ratio continues to improve leaving room for further dividend increases this year.
I'm my opinion, DIV should get back to the $ 3.30 to $ 3..40 range in fairly short order. At current price, the yield is close to 8 percent again, which is excellent. Under BMO s ownership, AIr miles should do much better and I suspect their royalty payments to continue as usual.
Also, Stratus adjusted revenue for the period November 15, 2022 to December 31, 2022 was US$0.8 million, translated at a foreign exchange rate of $1.3521 to US$1. That translates to about $ 1.7 million CAD if you extrapalate that over 12 weeks(one quarter).
All in my opinion.
Cheers and GLTAL.