CorEnergy Infrastructure Trust, Inc. (CORR) issued a press release this morning announcing the suspension of their dividend for the time being. This means income investors like me have to scramble to get out of the stock before the price drops too much from other investors jumping ship. As of today it’s down 12% which is not much considering the stock was trading around $2/share since July 2022.
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) announced today that its Board of Directors has determined the Company will suspend dividend payments on its 7.375% Series A Cumulative Redeemable Preferred Stock and the Company’s common stock.
“After careful consideration, the Board agreed with management’s recommendation to suspend dividends due to a combination of declining volumes and increased costs in our California systems. As a result, we filed for a 36% rate increase on our SPB line in California based on the regulated cost-of-service tariff structure,” said Dave Schulte, Chairman and Chief Executive Officer.
“Additionally, near-term debt maturities provide a transitory challenge, which will be addressed with a focus on monetizing assets and reducing total leverage. Pending the resumption of dividends, we believe that retained capital best benefits stockholders through the reduction of debt. The Board will continue to evaluate future dividend payments on a quarterly basis,” Schulte concluded.CorEnergy
I’m taking the proceeds from selling my position in CORR and buying additional shares of Medical Properties Trust (MPW). They have a dividend yield of 9.43% and their prospects are solid to maintain that yield for some time. Last October they reported their top tenant addressed some of their cash drains and positive revenue trends, reduction in contract labor, and other cost saving actions.