Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: TMFCogitarius Big gold star, 5000 posts Old School Fool Home Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 220  
Subject: Re: New Texas reactor plans ditched Date: 11/27/2012 5:20 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 6
rookiex: 'believe management should figure out an alternative to a dividend cut.'

Ordinary share dividends are merely one of the many options available to management for capital allocation. In fact, such dividends should be the last option, for when management has no better way to increase shareholder equity.

The starting premise for investing in any such shares has to be that dividends are not a given. If reliable dividend income is a major requirement, then you should be thinking instead of fixed income/ preference share options much higher up on the capital structure.

'I came away with the distinct impression these folks aren't particularly competent. '

This is arguably the most subjective element of any investment. Nevertheless, one of the important reasons why Exelon is highly rated is its management quality. Crane, for instance, had a solid track record as COO, and his predecessor, Rowe, was an industry institution. I admired his straight-shooting style of leadership!

I sincerely appreciate your predicament in having EXC in a retirement account. However, such plans are, by definition, long term investments. Are you so sure EXC is a long term writeoff?
MDP Home Fool
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.