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Originally Posted by Dean2
There are a lot of levers they can pull to maintain the dividend. Expense cuts, sales of non-core assets, reduced capital expenditures, increaded debt, cancelltion od the drip program and many more. They can even materially reduce the rate they have been increasing the dividend payot which they just did again a couple of months ago. For one of the big three to eliminate or even cut the dividend would be self inflicted suicide. The board and management would be removed en mass. Their shares would be shunned by all buyers.
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Ah, Ma Bell. The telco everyone loves to hate. They sold Nortel at the high. They bought Bell Atlantic when capex was falling and cashflows rising. They then bought Manitoba Tel when capex was falling and cashflow rising.
Off topic here. Remember TC Energy? TransCanada Pipelines said in an annual report they would never cut their dividend. Then they cut their dividend massively right away. I know, a topic derail. I'm still annoyed at the company though.
Quote:
Originally Posted by Dean2
A little historical perspective and a good article on home ownership.
I like to think of my house as more of a home than a financial asset but it does provide a nice hedge against inflation and the ability to borrow against it if need be.
For most people, it’s a form of forced savings, which is even more important than the actual return.
Either way, I don’t think it makes sense to compare your house to stocks, bonds, gold, crypto, or any other asset class.
Housing is the most emotional asset you can own.
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I like it! Something for everyone! First he says a home is a financial asset and then he says it's forced savings and then he says you can't compare it to other financial assets, which by default then makes a house
not a financial asset.
I've always treated home ownership as a lifestyle decision and not a financial decision. And yes housing is very emotional because people mush the lifestyle factors in.
Unfortunately the vast majority of Canadians probably have no equity for retirement except for their home, and people are living longer. So home ownership will have to be considered a financial asset by them. If they want to live in the same neighborhood sadly the cost of living post-house sale is going up as rapidly as house price appreciation. YMMV.