Q: Hi
Would you add to WCP at this price range? The steady decline is worrying me, to be honest. But then I try to flip the argument and ask whether now is the time to purchase more.
Your thoughts.
Would you add to WCP at this price range? The steady decline is worrying me, to be honest. But then I try to flip the argument and ask whether now is the time to purchase more.
Your thoughts.
5i Research Answer:
WCP pays a nice yield of 8.8%, but its decline has largely been associated with the recent drop in oil prices. We feel that WCP is a decent hold due to its consistent monthly dividends and solid balance sheet. It is also cheap. Its performance will largely be tied to energy prices in the short term, but it generates a good amount of free cash flow and we like it for sector exposure. We feel that if one is optimistic on the outlook for energy stocks and the price of oil, that this name can perform better in a rising energy market.