Will somebody explain to me (really) why a company that misses its numbers feels compelled to raise its dividend, especially when it has to dilute and borrow to pay the dividend now?
Today Pembina was off 3.6% on its miss. That is about 75% of a yearly payout. Who cares that you go from..15 to .16 (most of that was lost by Canadian currency clobber anyway.) I would rather see Pembina retain the income and let shareholders get paid when they sell the stock.
First you make money, then you raise the dividend. OHI has fallen in love with this consecutive dividend increase thing but can't figure out how to pay for it, and so the stock languishes. You will make MUCH more money on a stock from its price increase rather than its (unjustified) dividend increase.