Hold Your "F.I.R.E" , Your Dividend Has Just Been Cut By 81.5% !!
Yes, not by -8 % or -38% but -81.5% !! This is what happened when APPT (Asian Pay TV Trust) announced their result and dividend payout for next quarter this morning.
I think most of the so-called " income investors " (including me) were stunned by this sudden news and of course, the share price dropped by -49.2% and closed at $0.16 today. I still have a small position of this stock in my portfolio ( 0.4% ) and expected it (dividend) to be cut by 50% to around 3 cts which is a more sustainable level and close it's FCF and may still give us an approx 10% yield at the price of 30+ cts . Although it just a small position, but sitting with such huge "paper loss "now is no joke and a really painful lesson learned, I am sure those vested will have the same feeling.
Imagine if you have a huge position on this stock and with much-concentrated portfolio, you will really need to hold your F.I.R.E.
My friends, Kyith (from InvestmentsMoat.com) and Royston (from The Motley Fool.sg) both have a good write up about these issues of APPT and its story.