02-21-2017, 09:03 PM
Good article, R2R. Despite the fluctuating exchange rate, I'm quite please with how all the CA banks in our portfolio have performed.
The only concern at this point is that the payout ratio is close to 50% for all of them. IIRC, all the banks have said, at one point or another, that their goal is to maintain the payout ratio in the 40%-50% range. I'm expecting the dividend growth to moderate for the near term unless the rising interest rate environment drops to their bottom line.
The only concern at this point is that the payout ratio is close to 50% for all of them. IIRC, all the banks have said, at one point or another, that their goal is to maintain the payout ratio in the 40%-50% range. I'm expecting the dividend growth to moderate for the near term unless the rising interest rate environment drops to their bottom line.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan