3 "hold" and 3 "underperform". This stock looks pretty safe to me, historically it is cheap and it pays a nice dividend. I"m thinking about puttting a chunk of this into my retirement fund. Should I?
I see cash per share most recent quarter $2.97 which covers the $1.24 dividend a year.Current ratio is 9.32 also covers dividend.But the payout rates is 110% which is high.As they say do you own homework.This stock has paid a dividend since 1905.
homework grade: D+ (the plus is for effort)
The question isn't whether they can meet an outstanding obligation once. The question is whether cash flow covers the dividend on an ongoing basis.
Homework: does free cash flow cover the dividend?
For extra credit: Where has the money come from to pay the dividend, if not cash flows?
Remember, these so called analysts told people to buy Enron when it was going down the tubes. It shows how much they know, do your own research and ignore the garbage analysts present to the public.
Well Buttfox -
This is a company refusing to recognize that they do not earn enough money to pay out a dividend they choose to pay.
To pay this un-justified dividend they either take out a loan or sell more stock.
Mostly HE just sells more new stock --- but that dilutes the value of existing stock.
And diluting the stock generally always causes the price to go down, so shareholders lose just in the pursuit of a rich dividend.
Worse yet - Connie's only approach to make things better is to petition to have the locals electric rates increased. No new efficiecies. No increased trash to energy burning.
Business 101 teaches that firms are not to take out loans to pay dividends.
The yahoos in charge of HE failed that class.
A lot of half-truths about the dividend. Fact is last quarter HE earned .31 and paid a dividend of .31 but you don't see that posted here. Sure earnings should be covering more of it, but cash flow has generally supported paying the dividend even when they didn't earn it.
There are a couple of people posting (probably the same person) who have an issue with the management - probably lost their job there - who should not be relied on for objective views on this company or the stock.