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TSE:VET

Vermilion Energy Inc (VET.TO)

14.03
+0.19 (1.37%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
472 watching
0
DON'T BUY
Buy for Yield? He would not buy here. Although the dividend is juicy, he thinks oil producers will fair better. VET still commands a higher multiple than other plays, so he sees better choices out there.
HOLD
The company says it won’t cut dividends. The cash flow is sufficient to do this. Operations are more significant in Europe which is a safer region and they’ve been able to operate in difficult political environments without any problems.
DON'T BUY
High dividends scare him. VET's is 14%. Maybe energy ticks up so you can own this. But maybe don't buy this because the dividend is so high. There are so many moving parts to energy stocks--Saudi Aramco will suck up a lot of capital. Also, institutional investors don't want to own fossil fuels.
HOLD
For some of his income focused accounts he holds VET. He thinks the dividend is safe. He still believes in management. There have been some operational issues, but overall they seem to be doing well. He was concerned about their acquisition of Saskatchewan assets a year ago -- increasing in Canada was going away from their foreign asset strategy. Yield 14%
DON'T BUY
One of the better operators, but they missed earnings recently. It is cheap on almost all measures, but its cash flow is marginal, so it does meet his criteria. A huge yield, but an equally high payout ratio (141%). He thinks they should cut the dividend and buy back shares until the ship is righted again. Yield 13.7%
PAST TOP PICK

(A Top Pick Oct 19/18, Down 40%) They garnered a higher multiple than the rest of the sector because of their European assets. They have transitioned more capital to North American assets. He sold because of its relative valuation and he switched to ARX-T. It has a 13.6% yield.

BUY
An internationally diversified company with operations in Europe. Pays a high 14% dividend. Well-managed. Likes it very much. Higher risk/reward. We need a better global energy environment that would certainly help VET.
DON'T BUY
Hold and collect the 14% dividend? First, look at the dividend ($2.76) and the earnings (66 cents)--which don't fit. Then, look at the balance sheet trend of the equity which has been steadily falling. Third, the earnings have been falling too. Technically, it's getting cheap. It should bounce at its $17 book value. The dividend is outlandish at 14%.
DON'T BUY
The yield is 14.2%. It is a 43% cash payout. Earnings are expected to decline this year. Return on equity is nothing good.
SELL
Eight or so months ago he recommended selling VET. $12.90 is his model price, far lower than current prices. Pays over a 13% yield. There's more bottom to mid/small-cap oil stocks.
DON'T BUY
He's been following this. He's surprised the stock is so low, but the sector is struggling. The 14% dividend tells you something. Tax-loss selling could pressure this further. He doesn't own energy stocks.
COMMENT
Tax loss selling coming? This late year event may occur again. He cautions that taking money out of the space may lock in losses that can not possibly be made up in other sectors. Maybe sell the odd name and re-balance into another, he suggests.
PAST TOP PICK
(A Top Pick Nov 19/18, Down 36%) Almost 14% dividend. He like it. It got beat up last year and is a buy this year during tax loss selling season.
HOLD
Doesn't own it in their core portfolio, but does own it in the income-seeking one. Juicy yield. Risk of dividend cut is moderate, but not immiment. Payout ratio is manageable. Has never cut a dividend. Stock is cheap. Yield is 14.2%.
WEAK BUY
Pays a 14.1% dividend, but the street expects this to be cut. He has started to look at it. VET has international operations in Europe and Australia. Worth buying if you stomach a dividend cut.
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