At Risk
At Risk is the third tier in Prospyr’s Coverage Ratio System, assigned when a holding’s ratio is below 1.10. At Risk means the DRIP Buffer has narrowed to a point where the holding is approaching its break point. Reinvestment is still occurring, but a moderate share price increase or dividend cut could break the DRIP entirely. At Risk holdings require attention — not panic, but a clear plan.
How Prospyr uses it
At Risk is a status within the Coverage Ratio System, coming in Phase 2. In Phase 2, At Risk holdings will appear in yellow on the portfolio dashboard and trigger a Price Creep Alert — specifying the exact number of shares needed to restore coverage to Defended or Fortress. The alert does not tell you to sell. It tells you what to buy, and by when, to keep the DRIP intact. Until Phase 2 launches, you can check whether a holding is approaching At Risk territory using the DRIP Engine Simulator, which models your buffer and break point trajectory.
Why this matters for Canadian investors
At Risk is where most long-held Canadian DRIP positions quietly end up after years of share price appreciation. A pipeline or utility stock purchased a decade ago at $20 per share, now trading at $40, may be generating the same dividend per share it always has — which means the coverage ratio has effectively halved. Canadian investors who set up a DRIP and never revisited it are the most likely to discover their position has been At Risk for years without a single alert.