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  5. SOBO: Based on the presentation on their website the dividend for SOBO is anticipated to be $2. [South Bow Corporation]
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Q: Based on the presentation on their website the dividend for SOBO is anticipated to be $2.76/yr which would equate to around 9%. This seems like a really safe buying opportunity……. Thoughts? How did they determine the spin off price to result in such a high dividend?

Thanks.
Asked by Mark on October 11, 2024
5i Research Answer:

We have had conflicting reports on the size of the dividend and thus are deferring to the company for the official announcement on November 7. The company has stated it wants to lower debt so a 9%+ starting yield makes little sense to us. We would still see it as a BUY though for income and some growth. 

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