Dividend and distribution cuts (2018)

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Peculiar_Investor
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Dividend and distribution cuts (2018)

Post by Peculiar_Investor »

FWF'ers do an amazing job tracking down and reporting on dividend and distribution cuts. Thank you.

Please use this topic for announced 2018 cuts. Your fellow FWF'ers would appreciate if you could post a link to the announcement.
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Re: Dividend and distribution cuts (2018)

Post by kjmcrae »

'We're taking action': Peyto (TSX:PEY) slashes dividend, cuts spending as it revamps natural gas strategy
...announced a 45 per cent monthly dividend cut to 6 cents per share after markets closed Thursday [Jan 11th]...
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Re: Dividend and distribution cuts (2018)

Post by Thegipper »

kjmcrae wrote: 12 Jan 2018 16:12 'We're taking action': Peyto (TSX:PEY) slashes dividend, cuts spending as it revamps natural gas strategy
...announced a 45 per cent monthly dividend cut to 6 cents per share after markets closed Thursday [Jan 11th]...
A excellent example why dividend investors should avoid energy and material stocks. They are just to cyclical and dependant on commodity prices.
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Re: Dividend and distribution cuts (2018)

Post by snowback96 »

I don't know if anybody flagged this one already, but I sure missed it. Back in November, Boardwalk REIT (BEI.UN) announced it was slashing its distribution from $0.1875/month to $0.0834/month. The change is effective with the next distribution on Feb 15. Ouch, that really hurts!

Boardwalk REIT Distribution Cut
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Re: Dividend and distribution cuts (2018)

Post by FinEcon »

snowback96 wrote: 22 Jan 2018 10:22 I don't know if anybody flagged this one already, but I sure missed it. Back in November, Boardwalk REIT (BEI.UN) announced it was slashing its distribution from $0.1875/month to $0.0834/month. The change is effective with the next distribution on Feb 15. Ouch, that really hurts!

Boardwalk REIT Distribution Cut
Anyone who bought right after I posted the announcement is up over 15% in just over 2 months. That said, I wouldn't advocate buying this well run REIT with a worn out portfolio heavily weighted in less desirable locations (i.e. Alberta CMA's) at the trough price in November. Unless you really dig under the hood to understand the portfolio, market specifics (rents, vacancies, etc) and especially the renovation and densification opportunity(!?). In the past, I've posted what constitutes good fundamental value for their units and how to properly think about that number but sadly Mr. Market seems to place a premium on Boardwalk units. OMO but I think it stems from lack of choice in the Canadian residential REIT sub-sector.

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Re: Dividend and distribution cuts (2018)

Post by bpither »

Another "transformational" cut at Cominar ... second in a year. From $1.14 to .72 cents annually
https://www.theglobeandmail.com/investi ... s/1955087/
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Re: Dividend and distribution cuts (2018)

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bpither wrote: 08 Mar 2018 09:57 Another "transformational" cut at Cominar ... second in a year. From $1.14 to .72 cents annually
https://www.theglobeandmail.com/investi ... s/1955087/
Yes, but this time they have a plan! Introducing the "Cominar 2.0 Strategy". :roll:
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Re: Dividend and distribution cuts (2018)

Post by bpither »

but this time they have a plan!
Me too!

It's called "selling the sucker for tax loss harvesting"
Trouble is I can't even blame Harvey Weinstein for my failure to act sooner :evil: .
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Re: Dividend and distribution cuts (2018)

Post by kjmcrae »

Long overdue, IMO:

Corus Entertainment (TSX: CJR.A, CJR.B) announces revised Capital Allocation Policy to position the company for future growth
Effective September 1, 2018, Corus' annual dividend rate will be adjusted to $0.24 per Class B Share and $0.235 per Class A Share, in line with both the Company's long-term goal of maintaining a dividend yield in excess of 2.5% and current industry peer benchmarks.
(Down from $1.13 per Class A Share and $1.14 per Class B Share.)
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Re: Dividend and distribution hikes (2018)

Post by shmenge »

CIX slashes dividend 50% now @ 3.1% from 6.1%
Stock plunges 4.2% on the day
Company will use the savings for a $1B share buyback plan
https://www.theglobeandmail.com/busines ... e-buyback/
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Re: Dividend and distribution hikes (2018)

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shmenge wrote: 09 Aug 2018 19:28 CIX slashes dividend 50% now @ 3.1% from 6.1%
Stock plunges 4.2% on the day
Company will use the savings for a $1B share buyback plan
https://www.theglobeandmail.com/busines ... e-buyback/
this sounds like it belongs in the dividend cuts thread.

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Re: Dividend and distribution cuts (2018)

Post by Peculiar_Investor »

I guess things have turned for the worse as what goes up
ThinkDividends wrote: 08 Mar 2012 09:01 BUD ups dividend by 50%
Anheuser-Busch InBev SA (BUD) forecasts heavier drinking this year in the United States and Brazil, its two main markets, after quarterly earnings were boosted by price hikes and cost cutting. The company said it was also proposing a 50% increase in its dividend to 1.20 euros.
now comes down AB InBev shares drop on earnings miss and dividend cut | Financial Times
Financial Times wrote:The world’s largest brewer Anheuser-Busch InBev has cut its dividend in half and reported weak third-quarter profits hit by slower sales in key markets including Brazil, the US and South Africa.

Shares in the maker of Budweiser shed as much as 11 per cent on Thursday, their sharpest fall in a decade. While the company cast the dividend cut as needed to pay down its $108bn in debt from the 2016 SABMiller acquisition more quickly, investors appeared more spooked by poor performance of the business.

“A 50 per cent dividend cut is not a great surprise,” wrote RBC analyst James Edwardes Jones in a note. “A significant and widespread shortfall against company compiled expectations is. This is not AB InBev’s finest hour.”

The annual dividend for fiscal year 2018 will now be €1.80 a share, the company said. It was the first cut since 2015, and the $4bn saved will all go to paying down debt. 
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Re: Dividend and distribution cuts (2018)

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GE (NYSE: GE) cuts dividend, splits power unit as new CEO looks toward revival
...slashed its quarterly dividend to just 1 cent a share and said it was reorganizing its power unit into two businesses as new chief executive Larry Culp took his first steps to revive the struggling conglomerate.
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Re: Dividend and distribution cuts (2018)

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General Electric (GE) takes an axe to their dividend, General Electric cuts dividend, splits loss-making power unit | Reuters
General Electric Co (GE.N) slashed its quarterly dividend to just 1 cent per share and said it would split its power unit into two businesses as new Chief Executive Larry Culp took his first steps to revive the struggling conglomerate.
There is a dedicated FWF topic on this company, check out General Electric (Symbol-GE).
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Re: Dividend and distribution cuts (2018)

Post by Peculiar_Investor »

Not specifically a dividend cut, but a change to their dividend reinvestment program was contained in CNW | AltaGas Announces Third Quarter Results and Framework for Balanced Funding Plan to Build Long-term Shareholder Value
AltaGas wrote:As part of AltaGas' plan to optimize cost of capital, the Premium Dividend Reinvestment Plan ("PDRIP") will be suspended at year end

<snip>

Suspension of the Premium Dividend Reinvestment Plan
AltaGas' Board of Directors has suspended the Premium Dividend™ Component (the PDRIP) of the Premium Dividend™, Dividend Reinvestment and Optional Cash Purchase Plan (the "Plan") effective December 18, 2018, until further notice. Accordingly, the November 2018 dividend payable on December 17, 2018 to the holders of common shares will be the last dividend payment eligible for reinvestment by participating shareholders under PDRIP. The other components of the Plan including the Dividend Reinvestment Component (DRIP) of the Plan will remain in effect and unchanged. AltaGas expects the overall DRIP participation rate to materially drop from current levels of approximately 66 percent as a result of the suspension of the PDRIP.
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Re: Dividend and distribution cuts (2018)

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This is most likely a precursor to an actual dividend cut by Q4 results. Given Q3 results not being crystal clear on how ALA is righting the ship, and a resounding 15% drop in stock price today, this one could be heading for the dust bin if it cannot show how it is going to fund its capital program AND pay dividends out of cash flow.
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Re: Dividend and distribution cuts (2018)

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AltaRed wrote: 30 Oct 2018 18:17 This is most likely a precursor to an actual dividend cut by Q4 results. Given Q3 results not being crystal clear on how ALA is righting the ship, and a resounding 15% drop in stock price today, this one could be heading for the dust bin if it cannot show how it is going to fund its capital program AND pay dividends out of cash flow.
Glad I got out at $23. That's despite buying at $30. I, among many, totally drank the ALA koolaid.

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Re: Dividend and distribution cuts (2018)

Post by Sensei »

GE (NYSE: GE) cuts dividend, splits power unit as new CEO looks toward revival
[/quote]

Revival, huh. Like that's really gonna happen.
Cheers

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Re: Dividend and distribution cuts (2018)

Post by westcoastfella »

Looking through the quarterly report for Artis REIT today (AX.UN), here. Buried deep inside, under "Overview of new initiatives"
The REIT’s distribution will be revised to $0.54 per unit annualized, which will result in a more conservative payout ratio
of approximately 53% of 2019 analyst consensus AFFO. This change will be effective for the November 2018
distribution payable on December 14, 2018;
This amounts to a 50% reduction in their dividend from current $1.08
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Re: Dividend and distribution cuts (2018)

Post by DenisD »

Surge Energy Inc. Maintains Existing Dividend for November 2018

That Is, they are cancelling the previously announced 25% increase.
However, during the extremely volatile period from the announcement of the Mount Bastion acquisition on September 5, 2018 until today: 1) US$ WTI prices have fallen from a high of US $76.24 to as low as US $56.85 per barrel, including 11 consecutive days of falling WTI prices; 2) the Canadian oil industry has experienced the unprecedented widening of Edmonton to WTI light oil differentials from US $10/bbl to as high as US $41/bbl; and 3) Canadian WCS crude oil differentials to WTI have widened from US$24.50/bbl, to as high as $46/bbl.
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Re: Dividend and distribution cuts (2018)

Post by JaydoubleU »

Bonterra Energy,

0.09 cents to 0.01 cent / month

http://www.bonterraenergy.com/upload/me ... -final.pdf
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Re: Dividend and distribution cuts (2018)

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Junior oil firms cut dividends, output despite crude oil price rebound
Both Cardinal Energy Ltd. and Granite Oil Corp. said they can't afford to wait and see if Alberta's production cuts will result in a sustained recovery in oil prices.

Cardinal shares closed down 8.1 per cent on the Toronto Stock Exchange on Friday after it announced late Thursday it would cut its monthly dividend from 3.5 cents to a penny per share and had trimmed 15 per cent from what had been record production of 22,000 barrels of oil equivalent per day.

Granite stock closed 3.5 per cent lower after it announced it would suspend its monthly dividend of 2.3 cents per share and had stopped production of about 200 boe/d after posting third-quarter output of just under 2,000 boe/d.
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Re: Dividend and distribution cuts (2018)

Post by Thanh »

Altagas announces its 2019 balanced funding plan, including financial outlook and capital plan

A comprehensive review of the dividend policy has been completed by the Board of Directors, and approval has been secured to reset the monthly dividend to $0.08 per common share or $0.96 per common share annually, to improve financial strength and ensure greater funding flexibility. This represents a 56 percent reduction.

So from 0.1825$ monthly to .08$ monthly.
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Re: Dividend and distribution cuts (2018)

Post by OptsyEagle »

"•Target of 8-10 percent annual dividend growth through 2021, while reducing AltaGas Ltd.'s dividend payout ratios; and "

(Altagas News Release: January 25, 2017)

Really not seeing it.
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Re: Dividend and distribution cuts (2018)

Post by AltaRed »

Thanh wrote: 13 Dec 2018 08:40 So from 0.1825$ monthly to .08$ monthly.
After having raised it 3Q2017 :roll:

https://www.altagas.ca/newsroom/news-re ... s-dividend
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