- After Husky shares had fallen from a high of around $52 in 2008 and the company's cut their dividend, they haven't bounced back as much as I expected given the rebound in oil prices. I now don't see a lot of downside for the shares as they price of oil feels firm now that the economy is out of the hole it was in.
- The stock has also underperformed many other oil and gas stocks and the valuation seems reasonable at just $4 above it's multi-year low
- I think Husky will be quick to raise their dividend back up once their earnings catch up to the price of oil. Husky is now paying $1.20/share in dividends, while their EPS in strong-oil years past has been in the $4-$5.50 range. I think we have some high-oil price years ahead of us...
- The current yield of 4% offers some in pocket return with little risk of downside to the share price as the great recession moves further into history
Husky now makes up 7.4% of our non-registered portfolio.