Hi everyone, I hope you all had a happy and safe Easter weekend. I originally didn’t have a post to share with you as I was going to take a couple days off from writing, however I received news this morning of another dividend cut to my portfolio.
This morning The Keg Royalties Income Fund (ticker: KEG.UN) announced a 69% cut to its monthly distribution. I was say I was expected it to be cut or suspended indefinitely, so this is an interesting move. Why did I think it would be cut or suspended? Back in March the company closed all 107 of its restaurants so with no income coming it I knew this news was a given.
The Keg was paying a monthly distribution of $0.0946 per unit, now beginning with April 30th’s payment the new distribution will be $0.035 per unit. The company in its news release said they are planning on paying the new rate for the next six months.
I currently have 307 shares and with this announcement my income is going to drop by $18.30 per month, if the new distribution is paid for the entire year than my income will decrease by $219.60.
My plan is to continue hanging onto the stock, I believe over time the stock should bounce back. Before the pandemic the restaurants were always packed it will be interesting to see if people come back once COVID-19 is defeated.
Thanks for reading!