Many readers have asked me about this relatively high yielding dividend stock on my Dividend Stock Tracker called Cityspring, whether it is a good buy since its yielding 7.1%
My advice is look at the sustainability of the cash flow. Still the cash flow isn’t Cityspring’s problem.
This stock was trading at $1.50 when it IPO and its got its good name because its firstly a Utility and affiliated with Temasek.
Therefore a lot of people got invested in it.
Utilities tend to be high gearing ( 40-60% debt to asset) so its not very surprising. If you look at well run utility overseas, they tend to provide a good yield despite high capex.
Warren Buffett owns utilities as well and think of them as good business if their managers manage it well, since if you can manage the capex and the cash flow is government regulated ......
Many readers have asked me about this relatively high yielding dividend stock on my Dividend Stock Tracker called Cityspring, whether it is a good buy since its yielding 7.1%
My advice is look at the sustainability of the cash flow. Still the cash flow isn’t Cityspring’s problem.
This stock was trading at $1.50 when it IPO and its got its good name because its firstly a Utility and affiliated with Temasek.
Therefore a lot of people got invested in it.
Utilities tend to be high gearing ( 40-60% debt to asset) so its not very surprising. If you look at well run utility overseas, they tend to provide a good yield despite high capex.
Warren Buffett owns utilities as well and think of them as good business if their managers manage it well, since if you can manage the capex and the cash flow is government regulated ......
