Just Three Days Till Tourmaline Oil Corp. (TSE:TOU) Will Be Trading Ex-Dividend
Tourmaline Oil Corp. is approaching its ex-dividend date, requiring potential investors to purchase shares before March 13 to qualify for the upcoming dividend payout of CA$0.35 per share. Despite a commendable trailing yield of 6.0%, concerns arise as the company has paid out 100% of its free cash flow in dividends, signaling potential sustainability issues. Although earnings have grown impressively by 23% annually over the past five years, the heavy reliance on cash flow for dividend payments raises red flags for investors.
- The juxtaposition of strong earnings growth and high cash flow payouts underscores the delicate balance companies must maintain to ensure dividends remain sustainable without jeopardizing financial health.
- What strategies might Tourmaline Oil implement to manage cash flow more effectively while still rewarding shareholders with dividends?