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Looking for cdn div stocks that can generate safe income. What, if any, headwinds do you see for this company to maintain its stock price going forward? Price seems to be falling for last two years. I’m trying to figure out what economic conditions affect this companies financial performance. Also, I’m having trouble finding their div yield annual growth rate. Thanks.

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Asked on October 25, 2023 9:12 am
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This is a company that doesn't grow the dividend often, which is likely why you're having trouble finding the rate. It's only had one dividend increase since 2015.
The company has a bit too much debt and doesn't really operate all that efficiently for me to ever be looking at it, It's important we don't isolate yield and think of it as return. Despite paying out 7%~, the company only has around a 4% annualized return over the last decade.

However, it does seem reasonably cheap right now and cash flows with elevated commodity prices should continue to be strong. It's certainly not one I'd be looking to add to my portfolio as it just isn't really going to move the needle all that much outside of the chunky dividend, but I could see the attractiveness of it to income investors.

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Posted by Dan Kent
Answered on October 26, 2023 8:06 am