Alaris Royalty Corp ALARF

Higher Interest Rate Good or Bad

[ckwong]

High dividend stock share price usually lower in high interest rate environment because fix income is principle safe. I doesn't think high interest affect AD too much. If the business can raise money, I feel that AD would not be their choice because AD's rate is much higher. We receive payout about 10%. Higher interest rate may be more neutral than other factors. AD's share price could be negatively affected by a high C$ or low U$. If Fed raise interest, U$ will go up. It is good for the payout but bad for the borrowing business. I feel comfortable for next Fed rate hike. We also keep calm when the market dive, AD may go along sink a bit. Hold on to your hair.

[TheBigH]

Actually I sort of recall Steve King mentioning in one of the past cc that as the rates rise (not overly of course), it's an advantage for them, which makes sense imo. It makes other forms of borrowing cost relatively more expensive compared to the standard range of premiums they charge (or I guess they can charge on the higher side).  In terms of prospect, I really believe they will