Q: The dividend on ENBR is over 8%. What is the likelihood (probability estimate) of the dividend being cut? Is this an issue that should result in a sale, hold or buy? A dividend rate this high often signals an issue and reason to sell.
5i Research Answer:
No dividend is guaranteed, but the yield has risen as bond yields have risen. The stock has been weak, but is hardly alone in that this year as the whole sector has suffered. We do not see the dividend at risk, and view the stock more as a BUY for income, for those with some patience.