Q: Can we have your thoughts if you think the dividend is safe given the payout ratio is in excess of 100%
Analysts are constantly pushing for a dividend cut which is favourable for the people that purchased for both growth and income.
Management has said that they wont cut dividend , but what other choices do they have . ? selling the maple leaf assets has been more then offset by the purchase of the US fiber assets
Analysts are constantly pushing for a dividend cut which is favourable for the people that purchased for both growth and income.
Management has said that they wont cut dividend , but what other choices do they have . ? selling the maple leaf assets has been more then offset by the purchase of the US fiber assets
5i Research Answer:
They have put themselves in a tough corner regarding the dividend. We would not call the dividend 'safe' at this stage but management has discussed that they plan to maintain it as is. Shares are at a level where sentiment is so poor, it probably works out fine from here for a long-term investor but it is a bit of a waiting game at this stage for something to happen to get things moving again.