CTY - How safe is the dividend?

[monabri]

Both Shell and HSBA were "reliable" until they weren't. Whilst Curtis is managing , I would expect he will/would like to bow out "undefeated". However with a new manager, it might be all change.

[ADrunkenMarcus]

Both Shell and HSBA were "reliable" until they weren't. Whilst Curtis is managing , I would expect he will/would like to bow out "undefeated". However with a new manager, it might be all change.

They may need to build dividend cover and replenish reserves - raising the dividend 0.1% a year for ten years would accomplish that without a nominal 'dividend cut'. (Yes, an extreme example, but a c. 1% dividend increase over a decade would effectively allow them to keep their record going while transitioning to a more sustainable dividend stream just in time for the next crisis!)

Temple Bar recently cut the dividend for at least the first time since 1992, yet that followed a couple of years of very strong rises which were essentially just reversed. Had they not been so ambitious with such significant dividend increases relative to their usual pedestrian performance, then perhaps they would have avoided it.

Best wishes,

Mark

[88V8]

Only a maniac would throw away an unbroken 55 year record.
CTY will defend its divi to the last penny of its executive bonuses.

V8