If you want to do acquisitions and your stock price is reduce you are going to need cash or debt. At this levels of dividend, cutting the dividend is not as crazy as you think. As for the the stock plummeting to 10-15 on a dividend cut, I don't think that would be the case. I argue that the low stock price might have already baked in the possibility of a divi cut.
I think that what he means is that the dividend is way above the 2-4% that most companies pay. He is right, when a dividend gets too high and starts paying more than the company bonds or way more than its historical trend, most companies tend to cut and save the money. As per yahoo POT has only around 70M in cash, so yes this could be a good time for the company to slash dividends by 50%, bulk up cash reserves and still have a reasonable 3.5% divi.
Long time since I checked on this joint. That puke debate was fun. Highlights...
1)Jeb happily hitting trump's low five like a recently initiated fraternity boy that finally was accepted by the ring leader, (imagine the feast Putin would have with him)
2) 'my mamma should be in the $10 '
3) Carli speaking like the victimized drama queen of a Mexican telenovela,
4) Trump's smirk of a boy that got caught peeking under a girls skirt after Carli delivered the zinger of the night, 5) Rand Paul getting pummeled AGAIN !
6) Kasich who sounded like he was running to be pope rather than president, I mean WHAT HAPPENED ?
7) Christie who looked like he swallowed the Micheline man TWICE.