Q: Can I please have an updated view of ESP. Last question was in the spring. Is the 18% sustainable for the near future?
5i Research Answer:
ESP is a tiny ($5.5M) split share corp. It owns 15 large oil and gas companies. Since it uses leverage, it has had a fabulous year, up 118% YTD. Its five year number is impressive at 42.23%. But the volatility. YIKES!. Down 41% last year. Up 168% in 2022. Up 272% in 2021. Down 64% in 2020. Down 41% in 2019. Down 59% in 2018. Down 34% in 2017. Up 68% in 2016. In the past seven years the dividend has been stopped multiple times, including being omitted for five months of this year (restarted with a November payment). It is a roller coaster ride, but we would not consider the dividend safe and it is simply too small to recommend, even without the roller coaster volatility.