DIVIDEND CUSHION RATIO

FAQ: What Is the Difference Between the Raw Unadjusted Dividend Cushion Ratio and the Adjusted Dividend Cushion Ratio?  A number of quarters ago, we rolled out additional transparency with respect to the Dividend Cushion ratio methodology for master limited partnership (MLP) and real estate investment trusts (REIT) we cover in order to help readers understand how much of the adjusted Dividend Cushion ratio is supported by external capital-market assistance.  Both the adjusted and unadjusted ratios are worth keeping a close eye on. For example, should an MLP and/or a REIT have ongoing access to the capital markets, its highly probable that its dividend/distribution will be supported, as revealed by an adjusted Dividend Cushion ratio that would be comfortably north of … Read more