PGF - Pengrowth Energy
Who has an educated opinion on PGF - Pengrowth Energy - this thing yields 11% monthly...just aquired NAL energy last couple weeks. Is the dividend safe i wonder. seems like 50é50 gas and oil...who/s got the lowdown!!!
i been buying this since 08/09, added more ... i seriously don't care what will happen with divi they will always pay something
The trouble with Pengrowth is that their payout is well over 100% on an earnings basis and is around 400% based on a free cash flow basis. They seem to be paying out their dividend through debt issues and issuing new stock. I see one alarming thing on their balance sheet which is progressive loss of BV per share over the last few years which always gives me pause.
I think a dividend cut and probably a substantial one is required to maintain the business. Their only hope of avoiding this is a massive increase in oil and natural gas prices.
I'd rather own other companies on more solid footing like PBN, COS, PEY and SU at the present time. Three of those also pay a large dividend.
If you want something more risky take a look at MQL or BIR.