Contact Energy - CEN Chart

[BlackPeter]

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[trader_jackson]

https://www.nzx.com/announcements/357656

Today's results confirm the dividend is simply not sustainable... they are paying out 97% of free cash flow... How the dividend will increase in the near future is beyond me, and the dividend is one of the few things supporting the current fairly high share price.

[tango]

https://www.nzx.com/announcements/357656

Today's results confirm the dividend is simply not sustainable... they are paying out 97% of free cash flow... How the dividend will increase in the near future is beyond me, and the dividend is one of the few things supporting the current fairly high share price.

I am just happy that a dividend is being paid!

As to the future… From what I’ve seen outlined in the annual report contact energy is on the right track. I’m happy to continue holding

[bull....]

I am just happy that a dividend is being paid!

As to the future… From what I’ve seen outlined in the annual report contact energy is on the right track. I’m happy to continue holding

i mentioned on the power shares thread a while ago that peak dividends had been met , but the fact they are able to maintain them in a bad year is truely a reflection of a well run company.

[trader_jackson]

i mentioned on the power shares thread a while ago that peak dividends had been met , but the fact they are able to maintain them in a bad year is truely a reflection of a well run company.

Not sure borrowing to pay dividends is a reflection of a "well run" company...
Gearing was 31.4% at 30 June 2020, up from 28.3% at 30 June 2019, and $46m more was borrowed in FY20. It was either cut the final dividend by about a third, or borrow more... the "well run" company decided to borrow more. Not sure borrowing more and more to pay increasing (or even maintain) dividends is a great thing long term for a utility...

[bull....]

Not sure borrowing to pay dividends is a reflection of a "well run" company...
Gearing was 31.4% at 30 June 2020, up from 28.3% at 30 June 2019, and $46m more was borrowed in FY20. It was either cut the final dividend by about a third, or borrow more... the "well run" company decided to borrow more. Not sure borrowing more and more to pay increasing (or even maintain) dividends is a great thing long term for a utility...

46m was borrowed for investments so that is good borrowing

[trader_jackson]

46m was borrowed for investments so that is good borrowing

But they could have paid a smaller dividend and not needed to borrow anything?
Nice spin that is for sure.
I note market consensus was (an already low) $459m EBITDA... actual came in at $451m... bit like borrowing to fund dividends, not sure how the market would view this as good news, but maybe.

[bull....]

But they could have paid a smaller dividend and not needed to borrow anything?
Nice spin that is for sure.
I note market consensus was (an already low) $459m EBITDA... actual came in at $451m... bit like borrowing to fund dividends, not sure how the market would view this as good news, but maybe.

guess they could have paid a smaller dividend if they wanted to save lots of money , but whats the point it would be detrimental to the company when they dont need too. in fact all the power companies dont need to save lots of money at this point in time as ther is no need for very large capital investments .

[iceman]

https://www.nzx.com/announcements/357656

Today's results confirm the dividend is simply not sustainable... they are paying out 97% of free cash flow... How the dividend will increase in the near future is beyond me, and the dividend is one of the few things supporting the current fairly high share price.

I topped up a little recently on the assumption we will have 30c annual dividend in the next few years, which I think will be sustainable. That is still a pretty good return in today's world

[see weed]

It is still going on, end of day shenanigans. Have been buying in bits and pieces on close the last couple of days to get av. price down and hopping they don't drop the div too much. The yld is looking good at 6% plus. Best time to buy is on close lately, but will probably do the opposite tomorrow. Anyone on here topping up at these lower levels?

From post 1700--14/7/20. Closing price that day $5.60c. Am happy with that little gamble and looking forward to nice big divy soon.