Q: Hello 5i Guys
I'm looking for income (not worried about growth) and see MKP pays a nice dividend. Interest Rates are trending lower so maybe mortgage renewals won't be terrible.
What's your opinion of MKP for stability and (somewhat) consistency on the dividend for an income investor.
Thanks
Ken
I'm looking for income (not worried about growth) and see MKP pays a nice dividend. Interest Rates are trending lower so maybe mortgage renewals won't be terrible.
What's your opinion of MKP for stability and (somewhat) consistency on the dividend for an income investor.
Thanks
Ken
5i Research Answer:
On the 'stability' side of things, keep in mind its small-cap status can make business and the stock more volatile than others. It has done well this year, up 18%. It is priced well at 11X earnings. The dividend was raised earlier this year and the company has a good record in that regard. Based on operating cash flow the payout ratio is low. It is, of course, highly sensitive to rates and the economy. But our data shows it has never lost money. We would consider it higher-risk income overall, but certainly matching the requirements in the question.