BCRH - Blue Capital: The 13% Juicy But Risky Dividend Stock
Executive Summary
On Jan. 30, 2018, Blue Capital Reinsurance Holding (BCRH) reported its fourth quarter results. As announced, the company suffered from an increase in catastrophe losses leading to a drop-in book value. No special dividend was declared, and the regular dividend remained uncovered on a full-year basis.
Even if the management executive team argued that the situation should improve in 2019, I remain skeptical about the ability of the company to maintain the current dividend without further deterioration in the company’s book value.
2018, Annus Horribilis, Part II
In 2017, the company