Hey there,
Cogeco is one that never really appealed to me since the company's growth rates have been pretty stagnant over the years. Average earnings growth over the past five years is in double-digit negative terriority, while revenue has only grown at a low to single digit pace.
The yield might be attractive (and very much sustainable with an EPS payout ration int 60% range and cash flow in the 50% range), but once again - there just isn't much growth here. So I wouldn't necessarily say 'headwinds' per say, just pointing out that the company doesn't have much of a growth profile. That said EPS is expected to grow by double digits this year and the next, however revenue is expected to be flat. Which means that it is likely going to benefit from operational efficiencies, not necessarily growing the business. It also has the added stigma of being controlled by a single family (Audet) and those types of companies haven't really performed all that well in recent years. This is completely anecdotal, but I've seen negative commentary about this for many years now.
I'm fairly neutral on the company but the dividend is safe and if it can surprise and deliver better-than-expected growth, than at 12 times earnings it is decently valued here.
Mat