RE:RE:RE:RE:RE:RE:Dividend SafetyI think these are some astute insights into the landscape for Cardinal. The company is owned almost entirely by like-minded retail investors who are after the large yield. If that was cut in half (which may be prudent), the wave of selling would take the share price much lower than here. I don't want to venture a guess, but it would be more than a couple dollars.
Compared to peers, CJ is more than fully valued with the dividend propping up the share price over the past year.
Management is certainly well aware of these problems with a dividend cut and will only do it if their backs are against the wall and only with enough externality to blame (ie rapid drop in WTI, other companies cutting etc). If WTI stays in the 60s for a year or two, they will probably just accumulate debt and keep paying the dividend.
So I think the CJ dividend is safe for now, even if they can't afford it.
Sirlostalot wrote: Hello, not saying you are wrong but just wondering what the catalyst would be to supercharge the share price after a dividend cut ? , CJs strengths seem to be a high dividend and management consideration for shareholders , the stock isn't dirt cheap and the company doesn't have huge clearwater plays etc , if they were to cut down to 4 cents and provide a 6/7 % yield I would be looking at BCE or Enbridge , to a retired person living on dividends that extra 4% is huge. Good luck to all