Any comments on how the can have a 121% payout ratio? I keep wanting to pull the trigger on this stock for it divy. But afraid as soon as I do they will cut the dividend. Also Schwaab rates it as a "D" stock, I assume because of the amount of debt.
I have my speculative money in other areas, just looking for a little coupon clipping and a chance for capital appreciation.
The $46.8 million (13.4%) rate hike (in September) will help, and more rate increases are planned for next year. Also, in the third quarter, the company called nearly $50 million of 7.05% senior notes due in 2022 and replaced them with $50 million of 5.2% first mortgage bonds due in 2040. This will save them a couple cents per share.
Value line has estimated EDE earning $1.45 in 2011 and $1.75 by 2013-15.