Joetong: You say "the 6.5% dividend ain't (sic) bad when compared to what you get at your bank (<1/2%)." What if your bank was paying out MORE money in interest that it was taking in and was NOT insured by the FDIC? Would you still feel it isn't bad? Same correlation when considering the fact that HE pays out more and/or issues more stock to help cover the divdend payments.
Focus on the operating cash flow and not the earnings per share - this covers the dividend.
Add back depreciation of the assets, amortization, etc. and all the other noncash items.
Another item you overlook: annual dividend of $1.24 has been paid for over 5+ years. Several of those years eps exceeded the dividend, building a surplus in retained earnings. That's why HE did not cut the dividend is my educated guess.
Maybe I still can't convince you this is not creative accounting. You can wait until HE hits 25 to buy the stock when you get a rosy earning picture. Too late...don't look in the rear view mirror, look ahead.
Get a CPA to verify if I'm giving you BS. The numbers are what you want to interpret it.
I'm in to make a 10% - 20% profit and move on. Never buying at the top, buy more shares when near its 52-week low.
Those are all good reasons to speculate why the roller-coaster price of HE, and add in the scare of a dividend cut - But following this board for the past several months, I believe there is but one word to explain this phenomenon..... Igurumo!
You're not guaranteed to make a profit on every stock purchase - depends on your timing. That includes buying blue chip stocks like MSFT or XOM.
HE price at <13 earlier this year, buying was a speculation it will bounce back, maybe not to 29. My target is 21 before the end of the year. It can go back to 13-15 on any bad news. However, maintaining the divy was key in this economic environment.
Very few alternatives to getting 6%+ dividend. Just don't bet your life savings on HE. If you can find another better stock, go buy it.