Q: Both of these stocks are paying regular dividends and are on the cheap side. Sector balancing aside, what are your thoughts about adding either of these or both. If so, which do you believe will better sustain the dividend and add longer term value.
Thanks
Jim
Thanks
Jim
5i Research Answer:
Note both have cut dividends in the past. Currently, PEY is much cheaper than VET, but it has more debt leverage. We would side with VET for sustainability. But they do have a different focus (PEY is focused on gas) and we would be fine owning both of these for sector income.