Q: Hi 5I
I have held this stock in the past. It has come well off its highs and pays a good dividend as result. Understanding that any recovery will mute the dividend, is this stock a good consideration for the healthcare sector?
Thank you
Peter
I have held this stock in the past. It has come well off its highs and pays a good dividend as result. Understanding that any recovery will mute the dividend, is this stock a good consideration for the healthcare sector?
Thank you
Peter
5i Research Answer:
NWH.UN has had lots of challenges, and reduced its distribution by 55% in September. It has also been working with creditors to extend debt maturities and has assets up for sale. Now, much of these issues are reflected in the low valuation, and units could do better in a lower interest rate environment. But, the company got itself into this mess, and in the 3Q per-unit cash flow still fell from 15c to 13c, despite higher income. We think investors can sit this one out until fundamentals show some improvement.