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Capital Power Corporation (CPX.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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45.01-0.09 (-0.20%)
At close: 04:00PM EDT
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  • j
    jim-bag
    Payout ratio is actually well under 50%. It's not that tough to calculate using Adjusted Funds From Operations instead of EPS. That's what matters and gives an accurate picture of the ability to pay the dividend. Month after month after month after month....year after year after year....they just keep doing it like clockwork.
    Know what you own.
  • S
    Sam
    I'll be honest here: I have no idea why this stock is so dang stable.
  • I
    Ian
    Payout Ratio 414.42%

    Sweet
  • R
    Richard Carter
    Anyone know if any of that 3.5 billion for carbon capture is heading our way? Is this what we were waiting for to start building? Sounds about right on the timeline horizon.
  • V
    Vlad Impala
    Q1 EPS estimate: 0.73. Actual: 0.93. Verdict: Beat by 0.20.
  • p
    prabhat
    Excellent results
  • P
    Pete
    4 months ago, I predicted it'd be $45 in June, we're $1 away from that.
  • G
    Gerry
    It's one of those days when I wish CPX was the only stock I held. Lol
  • G
    G
    great quarter
  • R
    Richard Carter
    Well done gentlemen! Printing…..
  • j
    jim-bag
    From Globe and Mail, April 15, 2022 (fresh off the press). John Heinzl is a very respected and knowledgeable analyst. Bottom line is don't trust #$%$ sites like Yahoo, accuracy is NOT their forte, but they are very good at being sloppy and inaccurate!---------------------------------------- Question and Answer ----------------------------------------------Question:I have held Capital Power Corp. CPX-T +0.81%increasefor several years. With a current dividend yield of more than 5 per cent and steady capital growth, it has so far been a good choice for my dividend portfolio. But it has an extraordinarily high payout ratio of 543 per cent. Does it make sense to hold it expecting the dividend to be sustainable?Answer from John Heinzl:I?ve said it before and I?ll say it again: If you?re trying to determine the sustainability of a company?s dividend, don?t rely on the payout ratios published on financial websites. These are typically computer-generated numbers that provide no context or information as to how they were calculated. As a result, they often paint a misleading picture of a company?s ability to maintain its dividend.Capital Power is a case in point. I?ve seen the same bloated payout ratio figure on several different websites; it appears to have been calculated by dividing the company?s total dividends of $2.12 over the past 12 months by its 2021 earnings per share of 39 cents.There are a couple of problems with calculating Capital Power?s payout ratio this way. First, because of one-time factors, earnings often vary a great deal from one year to the next. Adjusted for such unusual items as impairment charges, foreign exchange gains or losses and changes in the fair value of assets, Capital Power?s ?normalized earnings per share? were $1.97 in 2021. Using this higher earnings figure, the payout ratio was a less egregious 108 per cent.That?s still uncomfortably high, which leads to the second problem with the way some websites calculate payout ratios: They often use inappropriate measures. With independent power producers such as Capital Power, earnings are often depressed by accounting charges such as depreciation that don?t affect the company?s cash flow or its ability to pay dividends. For that reason, analysts sometimes base the payout ratio on a company?s available cash flow instead of its accounting earnings.In 2021, Capital Power?s adjusted funds from operations or AFFO ? a cash flow measure included on its earnings statements ? came to $5.40 a share. Dividing the company?s annual dividend per share by its AFFO per share produces a payout ratio of just under 40 per cent. That?s a heck of lot better than 543 per cent. It?s also comfortably below Capital Power?s own target payout ratio of between 45 per cent and 55 per cent.So, the company?s dividend appears to be very sustainable indeed. What?s more, Capital Power has been raising its dividend for many years and is projecting annual increases of about 5 per cent through 2025. The company discussed this at its investor day in December; you can find a copy of the presentation in the investor relations section of its website.Bottom line: With payout ratios, the numbers published on financial websites can sometimes lead you astray. In many cases, you need to go to the company?s financial statements and earnings presentations ? and consult analysts? reports if you have access to them ? to determine if a company?s dividend is secure.
  • M
    Mike
    that's how it's done ✔️ 👏
    this company is rocking it 🙌
  • A
    Anita
    @jim-bag Pay out ratios are so confusing. Yahoo gives CPX 543.59%. Then Motley Fool author, in Apr 27 article, ?TFSA Retirees? states ?sustainable 45#$%$?. Then Journalist John Heinzl says less than 40%. Hard to know who to believe. Are we supposed to go back to baking our own bread? Who?s loaf can we accept?
  • I
    Ian
    I guess, it's time to hold. it will drop a little back in the next few weeks. this company is known to either miss or exceed the estimates by a large margin. I'm glad didn't sell it in 2021 with all the misses.
  • d
    dave
    Divy day
  • M
    Mike
    at the old resistance.. I think we could push on through. could see fresh ATH'S this week. 👌 🤔 🙌
  • J
    Jason
    Why I can't see this news anywhere else?

    https://www.stockwatch.com/News/Item?C:CPX&bid=Z-C:CPX-3036177

    The Toronto Stock Exchange has approved Capital Power Corp.'s normal course issuer bid (NCIB) to purchase and cancel up to 10,661,112 of its outstanding common shares during the one-year period from Feb. 26, 2021, to Feb. 25, 2022.
  • T
    Tony
    Very disappointed with DRIP suspension although I'm guessing most shareholders prefer the cash payout. Was expecting better Q3 results considering high AB power prices.
  • B
    Brent
    Latest earnings great considering the macro environment. Normally they would increase the dividend at the next earnings report by about 7%. But I think they’ll dial that back to a token increase. That said I still think this is a great place to park your money and get 7% plus return.
  • A
    Adam
    Started a small position today. Will add if it keeps falling. Dividend yield is attractive and seems safe relative to cashflow.