VET - Vermilion Energy: Don't Trust Their Insane Dividend Yield
Introduction
Following their disappointing third quarter 2019 results, Vermilion Energy (VET) cemented another chapter in a year that their shareholders would rather forget, with their share price almost halving during the last twelve months alone. This plunging share price has subsequently seen their dividend yield surge to an insane level and is now approaching 14%. Whilst this may sound really attractive, especially in this low interest rate world, investors should be very cautious as their ability to sustain their current dividend payments is questionable.
Dividend Coverage
When assessing dividend coverage, I prefer to