I'm new & mebbe this has been answered. 1. All things considered, which is the better buy--SGU or SGH? 2. Or is the elimination of the SGH divd a foreteller of a cut to SGU's divd? 3. Note---Could SGH go without a dividend for years??? Thats my largest worry.
You got a good response from dfsmshsm. I'll only add that SGU/ SGH has a higher risk for its category (true), but it also yields on of the highest rewards in its category. It's all about your personal risk tolerance. SGH's distribution WILL be reinstated. It's primarily owned by the people that go to work there every day. They will pay themselves once cashflow is to their satisfaction. SGH's dist. provides them with a buffer, which protects SGU. Do your own research and to see if SGU's dist. has been cut since reorganizing (it hasn't). Also, look at when SGH's dist. was reduced, and what happened to the unit price when they reinstated. The information is out there. Might not be this quarter, but SGH will be back...and where will you be when it does?......
Recent posts have been OK but no real detail on how this co does cash flow wise. They must have eliminated SGH div because they did not have the $. Do they make enough to pay SGU div or are they paying it out of working capital or borrowing it. Div is really super if it is reasonably expected to be earned in the future.
The human mind is made to anticipate possible consequences.
1. All things considered, which is the better buy--SGU or SGH?
Are you a speculator, looking for quick capital gains? Willing to take a goodly risk? Then consider SGH. Do you want a good dividend, at above normal risk? Then consider SGU. You say you can't afford to take a loss? Then avoid these issues.
2. Or is the elimination of the SGH divd a foreteller of a cut to SGU's divd?
Who knows? But it is said that the propane and heating oil business in the USA is declining at 4% a year. My guess is, yes, eventually. But some of us hope to milk this cow for a while longer, then sell to the greater fool, who will take the loss on SGU.
3. Note---Could SGH go without a dividend for years??? Thats my largest worry.
Of course it could. My own guess is that they might skip the SGH dividend next quarter, but the quarter after that they would pay it. What do I base this on - the idea that the cash should be available after the coldest quarter is over. But after that - anybody's guess.
Do I have any solid information? No, nada, nothing.
Thankyou to all who answered my questions-as a newcomer, this board seems to be pretty civil AND informative. While I havent bought yet, Ive decided initially to divide my investment between both stocks. Mebbe 70% into SGU and 30% into SGH- I'm still deciding and I am looking long term so waiting for SGH to resume dividends in a risk I'm willing. I appreciated all input, Negative and Positive.