
TSE:VET
If it cuts the dividend, the stock will likely fall. Sadly, there's no interest in Canadian oil stocks. VET has a lot of debt--keep that in mind. Can they maintain their cash flow and the dividend? Is it prudent to pay so much dividend when the price of oil is struggling? If you want oil, look at Cenovus.
Oil prices are down and who knows for how long? He's underweight oil, though he's always held, and he's minimal in Canadian oil. He'd buy VET in dips to average down. Has a $40 target. Buy a safer investment in this space is the ETF, HPF-T, so you're paid an 8% dividend to wait. It holds the world's 15 biggest oil companies. VET's dividend is a little rich at 13%, though he's okay with a cut and wait for this sector to come back. Expect a dividend cut in the oil sector.