Q: SPB is close to its 52 wks lows,I would sell this stock if there were a significant risk for the Cie and/or its dividend,and keep it if the Cie still looks safe , would you consider it as a Buy,hold,or sell in this perspective? thanks
5i Research Answer:
We would consider it a HOLD for income. While results are not great versus estimates and debt is high, the 4Q was still a record and its payout ratio is still low (33%) on a 12-month basis. Brookfield also owns part of the company. We would expect shares to do better as rates fall. No dividend is guaranteed but we think it is secure in the short term.