Enercare, Inc. CSUWF

Yields

[Lansing76]

I hate to say it, but with BCE trading at 5.5% and pipeline and utilities 6 to 9% dividend yields, I could see ECI getting down to a 7% Yield. Maybe $14.00 share price. I know yield is only 1 factor in the price, but the sector is very weak right now and ECI is quite sensitive to it.

[Opelcadet]

I wonder if it's gets to 7 percent will they cut it

[Lansing76]

They could cut the yield if it got that high. I think it would have a lot to do with interest rates. I do like the company a lot. But things always swing too far in both directions. 2018 will be a tough year to make money.

[whodathunkit]

What investment world do you guys operate in?  Dividends do not get cut because the yield gets too high.  Dividends get cut because of poor cash flow or a sustained earnings drop.  The market sometimes anticipates a cut and in the process drops the share price, thereby temporarily pushing up the yield until the dividend is actually cut.  The cut would drop the yield at that

[Opelcadet]

. I think what he meant is that if share price drops that low due to some event and the payout will be too high THEY will cut it.

[Lansing76]

Interest rates will impact the bottom line. If they need to divert more cash flow towards maintaining the business the best way would be to reduce the dividend. We have had almost 40 years of falling rates. Time to think differently.

[CorruptedLushDr]

They just raised the dividend at the beginning of this month. Even so, the payout ratio is still very conservative. I have to assume management doesn’t live in a bunker under the earth where they have no idea what is happening with interest rates. This Divvy isn’t getting cut any time soon.

[CorruptedLushDr]

*more precisely they announced the raising of the dividend at the beginning of this month. Effective for April on the applicable date