Since KMP pays out just about 100% of its DCF, how does it ever pay off debt? Eventually the pipelines wont be needed, obviously a long time away though. So in the end KMP will have the debt and no revenue. Seems like the business model is flawed.
It looks as though this fund sells bonds when maturity reaches 3 years left. I was wondering why they do this? Why would they not just wait until it matures? Does it have a positive, negative or neutral affect for the fund holder?
SNH currently has 1.9 billion in debt. Most of which they are just paying the interest on. Average maturity is 10 years. So if they can raise rents and/or occupancy enough over that time to afford higher rates then everything should be fine.
I hope your right... down lots of money right now. Do you have a link? .40 impact still leaves the dividend intact.
so do I... I'm trying to figure out if dividend is sustainable with $300 or even lower potash prices
If shares are undervalued it's a great thing to do. Increases EPS. Less shares also mean less shares they have to pay dividend on. Good use of capital at these levels imo.
Government spending has gone down and tax receipts have gone up. The can handle higher interest rates. Also, it doesn't matter if the fed loses money on its bond holdings. They will most likely hold them to maturity. Even if they did sell for a loss it has no affect.
40 billion a month from the fed does get tacked onto the national debt. The other 40 billion is buying mortgage backed securities so that doesn't.
A lot of the production shortfall is from dry nat gas North America. They are choosing to not produce as much as they could because of low prices. In the long run it should be the right decision. IMO, as long as they can keep up the big share buybacks, XOM stock should break out to all time highs. Gonna depend on capex and how the restructuring goes.
Sentiment: Strong Buy