Dividend at risk?...a legitimate question!
I always look at the Value Line Survey to get an opinion. It's at almost every library and I'd recommend it when you want basic info and an opinion from an expert.
In their April 5, 2002 report Value Line said this about CMS' dividend:
"For the time being the generous divdend yield is the main attraction of this stock....CMS has stated that it is committed to maintaining the dividend at the current level. The stock could return a worthwhile 3 to 5 year total return as CMS most likely will have completed its asset-divestiture program and improved its balance sheet by then."
also...Value Line is forecasting 2002 earnings per share of $2.00 and 2003 earnings of $2.35 for the company...enough to cover the $1.46 dividend.
There are NO guarantees in the stock market. So don't put all your eggs ($$$) in one basket (stock)....and don't invest more than you can afford to lose.
Value line used to be a very respected source of information for me, but is no longer so. I still use it's survey for past result information - however thier results with their stock and bond funds have been worse than weak.
Simply check the result of thier funds, good when the market soars and bad (I mean bad - check VAGIX) when it doesn't.
I still consider it good basic information, I just disagree with your "opinion from an expert"!
I think they are more EX than PERT.
Cut that down & that would be the last
straw. Many people go for utilities for
The result would be the stock price would
go right to HELL.
They still have stock options going strong.
Oh that don't count with Uncle Sam. (IRS)
Usually this board is very helpfull and willing to help,but sometimes children with little education choose to show their ignorance and post replies.
CMS may choose to lower dividends in the future.I am taking a chance that they won't.I doubled my shares today.I beleive they are getting on track and will turn things around soon.Use the IGNORE on those who have nothing to offer.Good Luck!
I've been concerned about the very same thing, so I emailed the address listed in the Yahoo Profile, and the same day received this reply, word for word...:
"The CMS Energy Board of Directors has publically stated that they
hold the CMS quarterly dividend at $0.365 ($1.46 per year). While it
always possible that the dividend of ANY company could be changed, our
Board has no plans to change the CMS dividend in the foreseeable
They have declared the May 22 dividend at the $0.365 rate, and will
declare the August 22 dividend at that same rate. I expect the same to
done later this year for the November 22 dividend and into next year
the 2003 dividends.
Thank you for being a CMS Energy shareholder"
Sounds like at least another year, and perhaps
CMS can get some earnings back on track. The
email is better than message boards for sure.
So your idea is, you're going to ask a bunch of anonymous people on a Yahoo talk thread that you have no way of knowing what these people's backgrounds are.
And if one or two of them happen to say, with or without foundation, "No, the dividend is not in peril," you're going to buy?
Good God, where do you morons come from?
The moron is you. You have insulted not only me but everyone on this board. I have done my research. I have owned this stock before and was a good investment for me.
Many of the people on these message boards are intelligent and are excellent resources. I appreciate their input and believe the information they provide deserves serious consideration.
With you being the exception, I have received good input again.
You need to get help before it's too late.
I think that you have to consider the possibility that the dividend may not be paid in the future. Especially in light of the fact that management is currently "borrowing" the money to pay the dividend that has been declared this quarter. If the earnings measure up to management's projections than CMS is likely to continue dividends at the current level. I am sure that management won't reduce dividends unless they absolutely have to. A reduction or cut-off would likely cause this stock to plummet and that's the last thing management wants....
Side note to "You are ignorant". I suspect that the poster that asked this question was hoping to receive some intelligent comments to consider along with other sources. Too bad you decided to belittle the poster rather than offer any constructive comments.
They already said that they are paying the dividend this quarter.Who know if it is at risk in the future.What should be at risk are the jobs of the top management.Talk about not building shareholder value.