Recent Sell WHG
12 Dec 2019 23:32
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Brokerage Sell: Westwood Holding Group (WHG)
Sell Price: $30/share
Decrease in Forward Annual Div: -$97
Payout Ratio: 275.66%
Westwood is the latest victim of declining active managed finance companies and I now question if they can still cover their dividend payment going forward. Since the 4th quarter of 2018 WHG has had declining Net Operating Cash Flow every single quarter and last month announced a lower rate structure to be be more competitive.
With dividends already under pressure from declining Net Operating Cash Flow I cannot see how the dividend can be funded going forward with reduced rates. While I believe lowering rates was the right business decision it will have to come at the cost of shareholder dividends.
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page revision: 2, last edited: 12 Dec 2019 23:35
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