Q: Can you comment on the dividend for this stock? It is elevated likely due to a depressed stock price but would you view it as stable or chance for a cut?
Thanks.
Thanks.
5i Research Answer:
AP.UN is down 9% this year, and up 4% over 52 weeks. Generally, investors have been wary due to its office exposure in a work-from-home type of work world (this is changing, though). The 11.52% yield reflects slow growth but also a payout ratio of 97%, leaving very little room for growth and/or a cushion if there is a recession. Certainly we would not see the distribution as completely safe but would not expect an imminent cut. Interest rates are heading down in Canada which may help the company and its unit value over time.