Good morning everyone, I hope you all had a good weekend. I am good and healthy, I hope all of you are as well. I hadn’t planned on writing a post today however my portfolio received some bad news that I thought I would share with you. This morning Inter Pipeline (ticker: IPL) announced they were going to be cutting the dividend by 72%. This news wasn’t a shock, I expected it to happen.
Here is some measures Inter Pipeline is taking to response to the pandemic.
- Dividend reduction of 72%
- Suspension of the Premium Dividend and Dividend Reinvestment Plan
- Suspension of the European Bulk Liquid Storage sales process
- Expense reductions including compensation adjustments for management and the board of directors
- Exploring partnership opportunities on the Heartland Petrochemical Complex
The company pays a monthly dividend of $0.1425 and beginning on May 15th to shareholders on record as of April 22nd the new dividend will still be paid monthly at a reduced rate of $0.04.
I currently hold 309 shares of Inter and with this reduction I am going to be losing $380.07 in income. Normally when a company cuts their dividend I sell, however in these uncertain times I am willing to be a little for forgiving as I believe this was the right thing to do for them, going into the pandemic the payout ratio was quite high.
Do you own shares of IPL if so do you plan on selling your shares, hold or buy more?