The House of Representatives has just past a Puerto Rican debt relief bill. So now what? The $2 billion they owe on July 1st will now just appear by magic?
It looks like their president, Kevin Donlon, bought over 2 and a half million worth over the last few weeks.
I would actually feel more comfortable if the dividend DID drop to something sustainable. I would prefer a rock-steady 15% to a questionable 20%.
Yes it may, and probably will. So why don't all of today's buyers know that?
So if they earned $0.13 a share, and they have to distribute 90% of that, that's $0.117 a share.
$0.117 ( x 4 ) / $5.41 = 8.65 % sustainable yield ; slightly lower than we are getting now.