Q: What do you think the odds are of a dividend cut and how much might you expect?
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5i Research Answer:
LB raised its dividend in June 2023. But last year it did have a payour ratio above 100% based on operating cash flow. The recent quarter was helped by the release of prior loan loss reserves. We think if it was going to cut it would have cut the dividend in conjunction with its recent earnings and corporate update. So, for 2024 at least we would put the odds at fairly low, 10% or so, and any cut would likely be small if it occurred.