Hi everyone, sad news to share with you today, my portfolio received its first dividend cut of the year. The Keg Royalties Income Fund (ticker: KEG.UN) has cut the dividend by 30%, I’m not sure when this was announced as I only found out about it when I received the distribution last week. Being a dine in restaurant chain this news isn’t really shocking considering we are in a pandemic and all of the lockdowns throughout Canada. Going into 2020 The Keg had an annual distribution of $1.135 per share that was paid quarterly at $0.0946 per share monthly. When the pandemic hit and the lockdowns began last March & April the company cut its distribution to $0.035 per share monthly or $0.42 annually. In late summer of 2020 with some customers allowed to dine in at locations the company was about to increase the distribution to $0.05 per share monthly and that began with the September distribution that was paid in October.
So now the distribution is back down to $0.035 per share monthly. I currently own 307 shares and with this news I will be losing $4.60 per month.
I’m plan on continuing to hold the stock for now. Last year during the pandemic when they could allow a certain number of customers in their restaurants they raised the dividend. Later this year I would like to see what happens with the Canadian vaccination program and maybe some more restrictions will be lifted.