Q: I would like to add to my position for income.
How safe is the monthly dividend after the recent large dividend and return of capital?
Please advise.
Thank you!
Albert
How safe is the monthly dividend after the recent large dividend and return of capital?
Please advise.
Thank you!
Albert
5i Research Answer:
POU has not reported a full quarter (of full results) since the big dividend payout, so we do not have accurate ratios here yet. The current rate is 5c per month, or $85M annually based on the number of shares. But based on POU's forecasted production rate and its very solid current cash balance and debt-free situation, we would not have major concerns about the dividend. Lower commodity prices will not help, of course, but the company has a cushion.