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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Peter and Staff
Like many subscribers confused now about what to do. I do like to keep a certain percentage in non dividend stocks and in the O&G sector have names like PPY,TOU,RRX among others.
In theory if these companies are making money but not paying dividends ,their stock price should rise and if I did need a dividend,I could instead trim say 5% of them annually and have the same value left as I would have if a dividend payer of 5% held flat in value.
I am confused like many as to why HSE would think paying a stock dividend is better than no dividend...after all we would own the same value of the company in theory whether we got no dividend or got more shares and our % of ownership in HSE did not change. Is it because they hope that if a cash dividend is not paid out, and their stock price holds steady, that we should be able to do what I outlined above for TOU,PPY or RRX if we wanted to raise cash?
Do you think all things being equal,this would actually happen..ie stock price per share hold steady so our value does increase due to more shares..cutting dividend for prudence sure did not help BTE price..wish I had sold it when they did cut the dividend.
Lastly ,do you have they will handle prorated shares that could be due to us on each dividend declaration?
Thanks for all you do
Dennis
Read Answer Asked by Dennis on November 02, 2015
Q: Hi Peter & Co.,
I bought Husky years ago for the dividend, which has now been suspended in favour of additional shares. I am leaning towards selling the stock, but would like your thoughts on when might be the best time to dispose of my position. Will today's news of job cuts, salary freezes, and payment of dividends in shares actually help boost the share price in the coming weeks/months? If so, I can sell at a later date. But if this news is more likely to drive the price lower (beyond today's fall), I'd sell sooner. Your comments please. Thanks.
Read Answer Asked by Brian on November 02, 2015
Q: I had free cash and couldn't resist the temptation of buying on decline, so I ended up with almost 20% position on energy. Here are my energy stocks: double pos-s: PEY and HSE, full pos-s: CNQ, HWO, HNL, WCP, half pos-s: BDI, SGY, BNK. Could you please rate these stocks by growth potential and by safety - I assume CNQ and HSE are the safest there, but what about the rest? Unless there are really big risks I am not planning to sell - will wait until oil goes up, hopefully within 5 years.
Read Answer Asked by Michael on January 26, 2015
Q: I own surge energy (Sgy) for growth and dividends and would like to own whitecap as well because of your recommendations
As well, on advice for stable dividend to ride out whatever the price of oil might be I just bought HSE (which immediately went down in price more than the declared dividend) however, listening to 'experts' opinions on oil prices into the future, I pose this question:

Would it be more wise to avoid this sector altogether now and wait for it to go very low (as some predict) and perhaps even bail out of this sector altogether until it proves that it can gather more steam?
Thanks
Read Answer Asked by lyle on November 26, 2014
Q: Seasons Greetings 5i I was reading the news release from Husky Energy HSE from Dec.11 under Corporate Developments it read " The board of directors has decided to discontinue the payments of dividends by way of the issuance of common shares " What exactly does that mean. I contacted the investor relations but they haven't responded yet, I had contacted them some time ago about the dividend policy and they said the dividend won't be looked at until 2016 after some of the major projects are finished. Thx Gerry
Read Answer Asked by Gerry on December 16, 2013