Wednesday, April 3, 2019

Dividend Paying Companies That You Hate

Tuesday February 5th, we had our alarm clock set for 5:30 so that we could get the kids ready and bring them to the airport by 9:00 for a week vacation in Mexico. At 4:10, my son woke us up crying since he'd vomited. We quickly changed his bedding, put him in a different pair of pjs, and told him he'd fell better if he got some sleep. My shower was then interrupted by my son making a mad dash to throw up over the toilet. Again, we cleaned him up, gave him hugs and told him to take it easy. We hit the road a bit late, but five minutes from our house, my son was sick again, and we came to the realization that five hours on a plane with a sick four year-old wasn't a smart plan. We turned around, brought my daughter to daycare, my son threw up again, and by the time we got home, my wife and I were both feeling pretty awful.

Since we had checked into our Air Transat flight the night before, we thought we should give them a call and tell them we wouldn't be showing up. The agent on phone didn't seem to care that we weren't showing up and told my wife she should call back in three days to talk about a partial refund. Having dealt with airlines semi-frequently over the past 10+ years at my current job, I told my wife not to expect anything. Despite low expectations, Air Transat actually managed to disappoint her during the initial call to the point where she told them she needed a break. The agent tried to justify how the airline still had to charge us for pre-paid baggage fees, despite never hauling our luggage. When my wife asked if they managed to resell our seats, the agent evaded her. After "a supervisor" called back my wife later that day, providing a refund of about ~20% of our ticket costs, my wife promptly informed me that we would never fly Air Transat again. For context, after a similar experience a couple years ago with Videotron (a cable/telephone/Internet provider in Quebec), my wife canceled our cable and Internet subscription within days, and laughs every time she tares up a junkmail flyer from Videotron.

 The Air Transat episode got me thinking about a near-investment I made in WestJet (TSX: WJA). Their stock was priced reasonably (P/E around 15X if memory serves), yielding close to 3% at the time, they seemed to be growing their dividend regularly, and I thought investing in an airline would provide me with some industry diversification. While considering investing, I flew to Victoria on WestJet, had a horrible experience, and took the airline off my watchlist after checking into my hotel. I've a couple articles similar to this one indicating that investing in companies you hate can produce good returns. Although my gut reaction is that companies you hate probably aren't interested in long-term sustainable growth fueled by satisfied customers, after considering my own experience investing in dividend paying companies I hate, I'm not sure what to conclude. A couple examples of dividend payers that I hate, yet own, jump out in my mind.

The Bank of Nova Scotia (TSX: BNS):
If you follow me on Twitter, I apologize if you've noticed one of my many sarcastic, mean-spirited tweets calling out Scotia iTrade (my discount brokerage). Ever since BNS took over iTrade from E-trade, the client-focus and responsiveness fell off a cliff. For instance, iTrade still charges the same $10/trade as E-trade promoted when I joined in 2001. Scotia programmed a US-dollar RRSP, and then sat on it for four years before introducing it late last year. Why introduce a service your clients ask for when you can instead charge them $30/quarter for a fair USD/CAD exchange rate? I think iTrade is the only brokerage in Canada that holds dividends for an extra day (minimum) before depositing them into your account. Then there's the unpopular changes BNS has made transitioning ING bank's former Canada business into their "Tangerine" brand.

In terms of investment performance, BNS is up about 10% over the past five years (not including dividends). Safe to say that their operating performance and integration of acquired subsidiaries has caused a lag in their stock performance. Despite the bank being attractively priced ~10.5X trailing earnings and yielding 5%, I wouldn't consider adding to my position in BNS in the near-term.

BCE Inc. (TSE: BCE):
Like thousands of other Canadians, I have a couple stories about Bell Canada's horrific customer service. Before moving out of my condo, I called Bell to disconnect my little-used landline.. I was told that since I was moving on a Saturday, my line couldn't be disconnected officially, in their system until Monday at 9:00am, and I'd be responsible for any long-distance charges incurred over the 48 hours the new owner was in the condo. While holding back my laughter, I asked the Bell representative how they planned to bill me for charges after I had left, knowing I had prepaid my last bill and left them with no forwarding address. The agent seemed confident when she warned me that they would find me. That seemed like an appropriate end to my relationship with Bell Canada during which I threatened to take them to small claims court when they informed me they would be keeping a $20 prepayment I made against a Virgin mobile cell phone. Perhaps realizing that the cost/benefit relationship wasn't in their favor, the agent agreed to transfer back the $20 to me.

BCE is up over 20% over the past five years (not including dividends). The stock is a bit pricey at 19X trailing earnings, but I might consider adding to my position if it becomes a better value. Maybe it's the personal lack of recent bad interactions with Bell that has me feeling that way?

There are other dividend paying companies in my portfolio with which I have had less than spectacular interactions with over the years:

Enercare (now part of Brookfield Infrastructure (TSX: BIP.UN)) / Enbridge (TSX: ENB):
Since moving to Quebec seven years ago, I've rented my hot water tank from Enercare, with the payment flowing through Enbridge, my natural gas provider. I called Enbridge last year to see how much it would cost me to buy the 2009 hot water heater and they quoted me a price equal to that of a brand new, energy efficient heater. I've since been trying to figure out how to buy and get a natural gas heater installed so I can tell Enercare/Enbridge where they can pick up and stick their 10-year old heater.

Rogers Communcation (TSX: RCI.B):
During my condo living years, twice I was quoted better prices for Rogers packages that were not honored on my next bill. This was apparently a favorite sales tactic for the company, which they continue to do over the telephone and in their retail stores.

Canadian Imperial Bank o Commerce (TSX: CM):
CIBC eliminated my no-monthly fee plan, didn't inform me of the change, started to charge me $10 per month on an account with no activity, then decided not to reimburse me when I called them out on it. Of course, this resulted in my closing my account, changing my credit card from one issued by them, and never setting foot in a CIBC branch again.

Canadian Apartment REIT (TSX: CAR.UN):
I moved from a CAR apartment to my condo over a period of a month during which I still paid rent. When I went for my last boxes about a week before month end, I noticed my fridge had been emptied including a recently acquired bottle of Cuban rum. This pissed me off to the point where I kept a key to the building that I used to park underground and play squash for years after I moved out.

McDonalds Corporation (NYSE: MCD):
Having worked in fast foot for about five years during high school, I have conflicted feelings about McDs. I know not to expect too much from minimum wage earning high school kids, but I feel that if the workers got my orders right more than half the time, I'd feel less crappy about owning shares in the company. In contrast I've never had a bad experience during visits to A&W or the Keg (other holdings of mine).

Is it good to hold shares in dividend paying companies that you hate? Looking at the track record of some of the companies above, the investment performance results are mixed. It almost seems like a necessary evil in Canada to hold shares in a bank, telecommunications firm and utility provider if you're a diversified dividend growth investor.

Do you own any dividend paying companies that you hate doing business with? If so, how have they performed for you?

Sunday, March 24, 2019

17 Monthly Paying Canadian Dividend Growers for 2019

Last Sunday for lunch, we did something very Quebecois, feasting on a deliciously sweet meal, taking a horse drawn sleigh ride, and finishing of with maple taffy on the snow at a sugar shack. Even though it was a tad expensive at about $25 per adult, I definitely got my money's worth in bacon and maple syrup (which is a great sugar substitute in coffee). While my father-in-law was making small talk with a former student of his who works as a waitress, I overheard her explaining that March is a critical month for maple syrup producers in Quebec. With the maple sap running when the temperature climbs above freezing and this coinciding with the only four weeks most shacks are open for meals all year, it's make or break for producers. How stressful it must be to have so much of your financial well being dependent on weather during one single month that has notoriously unpredictable weather. 

The visit to the "cabane à sucre" got me thinking that it was time to post the list of Canadian companies that pay growing monthly dividends for 2019. This has traditionally been one of my most read posts in 20182017 and 2016. Using the Canadian Dividend All-Star list from February, 2019, I determined the monthly dividend growers for 2019.   To be included, companies had to pay a monthly dividend, increase their distribution at least once in the last 12 months, and have a minimum 5-year history of annually increasing their payouts.  The initial screen this year yielded 23 companies before I removed five organizations that had not raised their payout in the last 12-months.  I then removed Boyd Group Income Fund due to their unimpressive 0.4% dividend yield. The 17 monthly dividend growers for 2019 were consistent with the number in 2018, down from 20 in 2017, but higher than only 12 in 2016.

The resulting 17 companies included eight real estate investment trusts (REITs). As the payout ratios and valuations of REITs are usually calculated based on funds from operations (FFO) or adjusted funds from operations (AFFO), I decided to separate the resulting list in two so as not to confuse any casual readers. For your browsing pleasure, the resulting monthly dividend payers are included below.

Here are some quick comparisons between the monthly dividend payers and the complete list of Canadian Dividend All-Stars:

- 23 of the 104 Canadian Dividend All-Stars at February 28, 2019 pay dividends monthly.
- Although the average yield of all Canadian Dividend All-Stars of 3.71% is considerably less than the seventeen monthly payers listed above (5.14%), the 1-year average dividend growth rate of 9.13% is significantly greater than that of the monthly payers (5.77%). 
- The average 3, 5, and 10-year dividend growth rates of the Canadian Dividend All-Stars of 9.62%, 11.95% and 8.74% are much greater than the comparable growth rates of the monthly payers 6.23%, 9.04%, and 5.27%. 

As with any other screen, the above list is simply a starting point for further research.  Clearly, a deeper dive is required given the average EPS payout ratio of 77.26%, although the trailing average P/E of 15.5X looks downright reasonable. As indicated on my Investment Holdings tab, I currently own two monthly paying Canadian Dividend All-Stars (Granite REIT and Canadian Apartment Properties). Of the remaining fifteen companies, Savaria is jumping off the page for me to conduct further research, and I'd also consider a deeper dive into Global Water Resources based on their industry and the fact they pay their dividend in US dollars. 

If your retirement savings happen to be as concentrated or weather dependent as owning a sugar shack in Quebec, I think you could do worse than diversifying into some of the names above to smooth out your cashflows to have funds trickling in each month. The psychological boost I get from holding a couple monthly dividend payers in my portfolio helps me on the 15th and last day of each month to be a proud dividend growth investor!

Do you hold or are you interested in purchasing any of the 17 monthly payers?

Friday, March 15, 2019

The Calm Investor?

After almost three months without an entry, it seems overdue to post something. My lack of activity on this blog mirrors both my attitude and my inability to find compelling buys. After adding some shares of Johnson & Johnson on Christmas eve, I felt excited about growing my portfolio in 2019. Now, with the North American markets attaining new highs almost weekly, I find myself with more cash in my portfolio than ever before.
Instead of opening up cans of worms regarding market timing or anchoring on past prices, I thought I’d write about my pre-occupation of late: calmness. It seems like rather I’m reading about meditating, listening to a podcast about how to be a better parent, or learning some kernels of wisdom from Howard Marks about business cycles, the importance of remaining calm and avoiding unwarranted action keeps re-appearing.

There are a lot of conflicting pieces of advice about investing, but one of the few universal truths seems to be that the ability to control your emotions, keep fear and greed in check, and respond to opportunities in a calm and rational manner is a winning formula. Trying to develop a sense of calm, being perfectly happy to do nothing, not yearn for more (action, stocks in my portfolio, possessions, etc.) has been, and will continue to be, a huge struggle for me. For example, here’s one of the needy, anxious, greedy thought patterns that plays in my head: If you added a few more higher growth/lower yielding stocks to your portfolio at more frequent intervals, you’d have more to blog about, you’d achieve a higher dividend growth percentage, you’d add more income, you could follow more exciting holdings, you’d be a more interesting person, etc., etc., etc.. Crazy? Yes. Destructive? Definitely! Yet, it’s a story that plays far more than I wish it would.

I failed at developing a mediation habit last fall. Focusing on my breath, for a mere five minutes at a time, without my thoughts wondering in a hundred different directions, was too much of a mental challenge for me. Forcing my mind to be calm, instead of letting it run wild, proved nearly impossible. On the bright side, I did find that focusing on my breath was helpful in getting to sleep at night. That was a nice silver lining.

With my son and daughter approaching five and two respectively, calm is not a word I’d use to describe my home. Some nights, both kids run laps around the kitchen/dining room/living room screaming, laughing and crying. After she wakes up, my daughter finds it hard to keep calm in bed at 5:30am in the morning for less than minute before starting to cry. Then she likes to play with mom and dad in our bed as we’re floating in and out of consciousness. My moments of calm around the house tend to come when both kids are in bed, my wife’s out somewhere, and I find myself with an hour or two to spend as I will. Instead of enjoying the solitude and embracing the calm, I tend to read, watch a show or contemplate a work problem. Although I think I’m decent at remaining calm when the kids are riled up, I need to improve my ability to be comfortable doing nothing on my own.

I’m not sure if I’ve become calmer as an investor, or that I’ve deprioritized it as an activity. I still think about possible transactions, spend time researching companies, read some filings to monitor my holdings. It’s the pulling the trigger to buy shares with a feeling of conviction that I have lost. I’ll likely not achieve my portfolio goals of adding forward dividend income this year. It’s part of where I perceive the market to be (frothy, eighth inning, few obvious opportunities), it’s a bit because of some of my holdings provided pathetic dividend increases (i.e. Coca-Cola, Tanger, etc.), and it’s also due to a calmer attitude. Ultimately, I’m happy at my job, fulfilled with my family, so meeting a stretch forward income goal doesn’t seem to matter much anymore.  

Two and a half months into 2019, this entry sums up my attitude and progress pretty well. I feel like an odd combination of the turtle and the hare in the famous fable, had the turtle pulled off to the side of the road and took a nap in the middle of a race against the hare. I’ll enjoy my slumber, let the hare sprint ahead, appreciate the calm, and we’ll see how long it lasts. 

Sunday, December 30, 2018

Goals, Metrics and Mistakes in 2018

In December 2017, when I set my aggressive goal to increase my forward dividend income by $3000 while achieving a dollar-weighted average organic dividend growth rate of at least 5%, I knew obtaining both facets would be a challenge. With plans to travel on December 31st, and no will to conduct another trade (19 this year is far more than I had planned on), I'm proud to share my final results: forward dividend income added was $3076 and dollar-weighted average organic dividend growth rate was 6.16%. As I approach a milestone amount of forward dividend income, I decided to slightly alter my goal  for 2019:

Increase forward dividend income by $3300 while achieving a dollar-weighted average organic dividend growth rate of at least 5.5%.

Since I've met my goals for the past couple years, I decided to make things harder in 2019. A 10% increase to both the forward income and growth rate seemed like enough to up the ante for the coming year.

Although I haven't been consistent with posting in 2018, I still spend a fair amount of time thinking about my investment process, searching for attractively priced stocks, trying to find ways to limit my negative behavioural biases,  assessing my results, and contemplating why I feel the need to generate ever increasing amounts of dividend income. Regarding the latter issue, sadly, I can't report any decent answers, which bothers me. As much as I'd like to say that posts will be more consistent and frequent next year, that probably won't be the case. Blogging has definitely fallen down my priority list as my two kids warrant much of my focus and attention when I'm home. That said, I was successful at writing about all 19 transactions in 2018 in my Transaction Journal, a small accomplishment in which I take some pride. 

Since I had a little down time today while the kids and wife were napping, I calculated some portfolio metrics which I thought would be fun to share. If you're not quite as nerdy as I am, feel free to skip over the below bullet points.
- My internal rate of return on my portfolio in 2018 was 3.6%, which beats my weighted benchmark return of -6.9% (36% US S&P Dividend ETF SDY + 64% Canadian Dividend Aristrocrat ETF CDZ). Most of the out-performance on the Canadian side can be attributed to Enercare and Enbridge Income Fund being acquired. Microsoft and McDonalds were very strong performers for my US holdings.
- My portfolio went up by 10.1% in 2018, about half my 2017 increase of 20.0%. Granted the last couple months of 2018 were a much more volatile and difficult period for the North American markets.
- The average dividend yield on my portfolio was 4.2% in 2018, slightly higher than 4.0% in 2017, and 4.1% in 2016. 
- The amount of cash I have in my portfolio at year end sits at 2.7%, identical to the 2017 figure, and much higher than the 0.9% figure from year end 2016. 
- The 38 stocks in my portfolio (a total unchanged since year end 2017) raised dividends 47 times in 2018. Realty income raised their dividend 5 times during 2018, while H&R REIT, Aecon, Rogers Communication, Keg Revenue Royalty, RioCan, and Life Storage didn't raise their dividend at all. 
- The Keg Revenue Royalty and Granite REIT both had special distributions during 2018. This is my first year ever receiving two special distributions. 

Two of the three mistakes I high-lighted in last year's entry, letting performance metrics drive behaviour and committing numerous behavioural investing errors, continued to be sore spots for me in 2018. Instead of boring you with the details, I'll give one example to show how I recently made those two mistakes simultaneously.
- In early December, when I knew how much I needed to reach my forward revenue goal for the year, I pre-calculated the impact of adding  small position in Alaris (a high yield, low dividend growth) on my dollar-weighted average organic dividend growth rate before pulling the trigger. After assuring myself that I'd still reach both goals, I went ahead and added back my position in Alaris for the umpteenth time. I shouldn't be as comfortable as I am with Alaris, but I'm in love with the management team whose goal to create a steadily growing, business cycle independent, income stream mirrors my own. Feeling some emotional connection to a stock is completely irrational and likely won't end well for me.

The other investment mistake I'd add to a long list I've committed is sticking to a plan when the environment is changing. I've long had an idea of which stocks I wanted to hold in my three accounts and continue to make changes to my portfolio to achieve the desired results. That said, when the market slumped the last couple months, I ignored some very attractively priced stocks and just kept making moves that were part of my long-term plan. There's probably a bigger issue at play here regarding my lack of flexibility and not trying to maximize my total portfolio return, which would put me in a better position regarding financial independence. That said, my results in 2018 were better than my benchmark, achieved my goals, and put me a couple steps closer to financial independence.

Now that I've over-analyzed my 2018 goals, performance metrics and mistakes, I look forward to reading about how everyone else did last year. Here's wishing you a happy, healthy and prosperous 2019!

Friday, November 9, 2018

C-Suite Executives from Five Canadian Companies Comment on their Dividend Policies

Part of my monitoring process for investment holdings is reading the transcripts of quarterly earnings calls. It's interesting to hear how a company's management views their dividend and what factors they consider prior to raising the distribution. Hot off the presses, here are how three CEOs and one CFO were thinking about their dividends, along with my peanut gallery quips.

Alaris Royalty Corp. Q3 2018 Earnings Call
Jaeme Gloyn
National Bank Financial, Inc., Research Division
"Okay, okay. Shifting to a different sort of question line. Obviously, a big question mark is around the
dividend. How are you looking at the dividend as it stands today? And what are the metrics or financial performance levels that you're looking to achieve before considering a potential increase?"

Stephen Walter King
CEO, President & Director
"Yes, we're in a very good situation with our dividend in that, as Darren mentioned, we've got the resets coming in January, and so that will get us down kind of at or below that 90% range. And then it will depend on new deployment after that in terms of a dividend increase. So if there is -- I would suggest if there's significant deployment, that, that would be something that we would look at. So it will be driven by that, but we're in a very good position. The payout ratio doesn't include anything from Kimco. We've got the new resets coming, so yes, it's a -- I think we're, for the first time in a little while, in a position to consider an increase if there's some good deployment here."

DiH Comment - Stephen's answer is thoughtful, logical, and shows how much he cares about getting Alaris's dividend growth back on track.

RioCan REIT, Q3 2018 Earnings Call
Sam Damiani
TD Securities Equity Research
"Just to follow on on the topic of the budget. It was about 11 months ago, we had the anniversary of your last distribution increase. Is that something we should expect to see again going forward?"

Edward Sonshine
CEO & Trustee
"I would think not. You know what, since we've gone out of the equity raising business a few years ago, we've learned that our capital is very precious. And whether we use that capital for NCIB, which has really been a significant return of funds. By the end of this year, I think we'll be looking in the neighborhood of $0.5 billion of money returned to our unit holders through that NCIB. We really don't feel the need to do that to increase our distribution. We're yielding I think -- it makes me ill to say this, but we're yielding about 6% right now, and I think we can put better use of those funds with the value creation we have undergoing here at RioCan."

DiH Comment - Oh the horror of being  a mall REIT that yields 6%! For context, the ~$0.5B of shares they've repurchased through the NCIB represent ~6% of their $7.5B market capitalization.  Here's hoping none of RioCan's investors are counting on Ed to give them a raise anytime soon.

Rogers Communications, Q3 2018 Earnings Call
Yong Choe
JP Morgan Chase & Co, Research Division
"Great. Just wanted to follow-up. Given the nice margin improvement and the guidance raise, how should we think about the dividend potential increase and maybe CapEx going forward? What should we be considering in terms of the margin increase versus the dividend?"

Joseph M. Natale
President, CEO & Director
"Sure. In terms of the dividend, kind of reaffirm what we said in the past. We're playing the long game. And Tony referred to it. We're playing the long game. This is all about sustainable, long-term dividend growth, and there's nothing new to report on that front overall."

DiH Comment - Rogers has de-leveraged past their initial target, improved margins, and is growing EBITDA at an impressive rate, but please don't ask Joseph Natale, best known for instituting Telus's long-term capital allocation policy, to give any details on what it will take to re-start Rogers' dividend growth. The truly sad part about Joe's response is that it's the same one that's been coming out of Rogers for over two years.

Christopher Allan Murray
AltaCorp Capital Inc., Research Division
Okay. And then I think that briefly on my question, which is around capital location; now that you've done the refinancing on the debentures and with the -- well, let's just assume of the sale of the Mining business gets closed by the end of the year or shortly thereafter. You look at your balance sheet, your -- you've talked about wanting financial capacity to participate in P3s, but it's not really been a capital-intensive business, really. So when you think about capital allocation, how should we be thinking about how you use your free cash flow? Do start thinking about M&A as a way of shaping the portfolio, and how does that thinking go into your divestitures? And to -- Or should we think about perhaps dividends, or do you even start looking at a share buyback?

David Smales
Executive VP & CFO
"...I think in terms of dividends and other methods of allocating capital, that's something we discuss with the board usually around the time we release our year-end results. And obviously, at that point, we'll know whether the Mining sale has happened or not. And that'll all be factored into our regular discussions around dividend policy and other things. So way too early to talk about that at this stage. And I think you asked about M&A, and Jean-Louis can comment as well, but I think he's already laid out, kind of, 2 immediate near-term focus areas, and we're at that right now."

DiH Comment - Being the CFO of a billion dollar company, I would think David has quite a bit of input regarding dividend policy. If Aecon's management let the Board set their dividend policy, that worries me.

AltaGas Ltd, Q3 2018 Earnings Call

Timothy William Watson
Executive VP & CFO
"Turning to our dividend, this has been an area of focus by the capital markets lately, given where the stock is yielding. We have determined, not surprisingly, that growing the dividend at this time is not appropriate. What we need to assess now in the mix of other factors is what constitutes a sustainable and ultimately growing dividend for the reshaped AltaGas."

Robert Michael Kwan
RBC Capital Markets, LLC, Research Division
"Got it. I guess turning to the dividend and on an appropriate payout ratio, I'm just wondering what are the different payout ratio metrics you're looking at. You did mention EPS earlier as well as cash flow. I'm just wondering, are you still looking at FFO, or would you also be looking at deductions from that number around your preferred dividend financing, minority interest distributions, maintenance CapEx, as well as rate-based investment into the units?"

David Wallace Cornhill
Founder, Chairman & Interim Co-CEO
"I think I'm going to jump into this one because I think you've got to look at everything. I think you can -- I prefer FFO because I find it a purer number than doing all the adjustments and normalizations. And I think earnings, whatever -- if they are true earnings and not adjusted with current -- some of the current GAAP normalized, are probably the best two.
I think it depends what you think is the appropriate range on those two metrics, but A FFO, U/A FFO are all factors that should be coming into your calculation on range at FFO. So we're quite aware of all those and what happens with changing mix and changing ability to fund dividend."

Benjamin Pham
BMO Capital Markets Equity Research
"I wanted to go over a bit about your comments around the transformation of your business the last 18 months and just some commentary on the dividend and where you thought it was going to go before and where it could go going forward. And so when you think about that business plan 18 months ago going into WGL, I know, David, you mentioned the financing -- or capital markets have effectively closed for AltaGas. But is there something else there that you may have misjudged along the way? Because it's -- the impact on your stock's been quite significant that -- is it really the financing market that's changed for you the last 18 months?"

David Wallace Cornhill
Founder, Chairman & Interim Co-CEO
"I think clearly if you look at where the financing market was almost two years ago now, when we were contemplating this transaction, to today it's quite different, primarily in terms of models and expectations on the market and access to equity. And we've been unable to really adapt over that period of time if we weren't locked up in a large regulatory process. And part of that was in bridge financing. It prevented us from doing some things we should have done -- from my perspective would have done earlier if we were free to do those things.
So we're playing catch up, quite frankly. If you look at -- go back to years ago, from a investment
thesis, people were looking for growth. People were supportive of growth. Today people want -- from a shareholder's perspective, are looking for totally self-funding and growth within that self-funding model, and which I think is prudent, quite frankly.
But that changed the dynamic dramatically. And if we look at our cost of capital, we see the cheapest cost of capital right now is asset sales."

DiH Comment -  Brief summary "Our stock is down, so our yield is too high, therefore we'll have to cut the dividend, in order to grow it back to the same level in the future. Of course, this is NOT our fault, it's the fault of the market."