Q: Wondering is this dividend safe for the long run?
Thanks.
Thanks.
5i Research Answer:
No distribution is guaranteed, and AX.UN did cut its distribution in half in 2018 (from 9c to 4.5c, it is 5c now). Adjusted payout ratio was 100% in the 3Q, so unless there is a fundamental improvement the distribution is likely at risk again. The REIT's small size ($720) and exposure to retail properties adds more risk. We would be cautious on any assumption that the dividend is safe in the long run.