What you say could absolutely be true, but these guys have a long operating history, and have paid a fairly consistent, on balance rising, dividend for many, many years.
Not saying things can't fall apart, witness Meditrust, which had a policy of increasing the dividend half a penny each quarter. It doesn't exist as Meditrust, rather exists in a much smaller way, as La Quinta. Also, it does not pay a dividend at all.
Do you have any reason to doubt ALD's management? Some might argue they are in the unassailable class. I listened to the CC, and have done some research on them, and seem to be very up front, and capable in implementing their business plan, and managing it.
Just because the div. is 10% doesn't mean that it won't hold - it was just raised! |
