Cardinal Energy: 12% Dividend Yield And A 8.5% YTM On New Debentures
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Cardinal Energy has introduced a new debenture with an 8.25% coupon and a yield to maturity of 8.55%, significantly higher than Canadian government bonds. The completion of its heavy oil project is expected to boost free cash flow, aiding in debt repayment and financial stability.
March 06, 2025 | 3:45 pm
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Cardinal Energy's new debenture offers an 8.25% coupon and 8.55% YTM, with strong free cash flow expected from its heavy oil project. This positions the company well for debt repayment and dividend sustainability.
The introduction of a high-yield debenture and the expected increase in free cash flow from the heavy oil project completion are positive indicators for Cardinal Energy's financial health. This should support debt repayment and maintain dividend payouts, likely boosting investor confidence and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100