RE:RE:RE:GND#13 with Chris Carlsen CEO Birchcliff Energy Who owns bir for the yield? Not me. I make jokes about what I'll spend my cheque on. Like a new lawn tractor. I was leaning toward snowblower attachments for the new tractor, or a new shed but with bir<$6 buying more stock makes sense. I'd still rather watch "the guy" clear my driveway while I sit inside sipping coffee. Anyone who buys any volatile cyclical company for the dividend yield is doomed to be disappointed. That what happened to you? We will never go back to income trust structures. This applies to oil producers, gas, and every other business in Canada. If you want yield, buy a utility or a bank or a bond.
I prefer the ATH model for shareholder wealth creation. 1) pay off debt ...it's expensive and the covenants can sink you at a cyclical low 2) Buy back stock. Not just lip service. Buy back BIG, the whole 10% using the NCIB, as long as your own assets are cheaper than what you can build or buy elsewhere. 3) if there's STILL excess cash and the board is tempted to spend to diworsify, launch a substantial issuer bid instead. 4) a distant 4th if there is STILL excess cash and the stock price has finally reached "fair" value, as a last resort, pay a dividend. One time. Or as many times as needed if options 1,2,3 don't work.
So, in other words, focus on the divy is pointless because the divy is pointless. Buy bir for all the upside reasons YELLED FROM Z IN HIS POST LAST NIGHT !!!