07-26-2021, 05:24 AM
(07-26-2021, 03:12 AM)crimsonghost747 Wrote: Thanks, I appreciate you looking into it. Indeed what draw me to this is the combination of low p/e, high div, high div growth and the majority of generating assets being in renewables already. Looking at EPS to dividend the payout ratio is fine. Not great, but fine. Indeed if we look at cash flow then it's a bit of a different story.They actually remind me of ALE. About the same breakdown % of regulated vs expansion into solar/wind projects which often aren't regulated. I see nothing sinister going on at ARQ, they are just asking for a problem at some point. I always tell myself if it were easy to grow fast and pass out free candy for decades, then the FANG stocks would probably be doing that.
I will probably end up buying a bit of this. It'll never be a large position due to the risk with share dilution and balance sheet but I think that the risk/reward is worth it at this time when it's damn near impossible to find anything truly cheap. High starting yield and high div growth are a great combination as long as the company doesn't go bankrupt
ARQ either pulls it off, or they get forced to cut the dividend when the dilution gets out of hand. They are just too small to pull 9B cash out of thin air. BTW I think some of their planned expansion includes nat gas distribution infrastructure.