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re: I'm getting bored with day trading. So, I'm going to create...

Posted on 2/22/12 at 11:28 am to
Posted by aaronb023
TeamBunt CEO
Member since Feb 2005
11774 posts
Posted on 2/22/12 at 11:28 am to
the yahoo stock screener was saying they both had a yield above 4. but yeah, i see what you mean
Posted by Clay1582
Shreveport
Member since Oct 2007
78 posts
Posted on 2/22/12 at 11:34 am to
What would you consider an acceptable payout ratio and why? I've never kept it long term, just for a few months here and there, but I would like to add one or two to my portfolio.
This post was edited on 2/22/12 at 11:36 am
Posted by ynlvr
Rocket City
Member since Feb 2009
4583 posts
Posted on 2/22/12 at 11:35 am to
DLR is a REIT play that could add some desired dimension to a current portfolio. EPS and Dividends are on the rise. Positive earnings surprise last quarter and Yield >4%
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/22/12 at 11:37 am to
quote:

What would you consider an acceptable payout ratio and why?
It depends on the industry but no more than 100% regardless of the industry. Any company paying 100%+ is paying dividends out of capital and that's a no-no for me.

ETA: I just bought 1K shares of ETR (Entergy) at $67.26 for a yield of 4.94%.
This post was edited on 2/22/12 at 11:42 am
Posted by aaronb023
TeamBunt CEO
Member since Feb 2005
11774 posts
Posted on 2/22/12 at 11:43 am to
how about BIP
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/22/12 at 11:48 am to
quote:

how about BIP

With an almost 90% drop in quarterly earnings year over year I think I'll watch them a while.

I am not familiar with this company. Did they buy another company in 2010? They more than doubled their assets in 2010. Hard to imagine they grew that much organically in one year.
Posted by datdude3384
Member since Sep 2007
249 posts
Posted on 2/22/12 at 12:17 pm to
CTL
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/22/12 at 12:21 pm to
quote:

CTL

Payout ratio over 250%.
Posted by tirebiter
7K R&G chile land aka SF
Member since Oct 2006
9188 posts
Posted on 2/22/12 at 12:28 pm to
quote:

What's your take?


My take is the T CEO should have been fired for the failed T-Mobile acquisition and resulting multi-billion break up fee, not that it failed but him agreeing to such a ridiculous fee knowing there was a significant chance of rejection/denial by the Feds. I can't understand how the guy kept his job and the board slapped his wrist and cut his bonus 25%. Still was paid > $18M + stock options, not the guy I would put my money on.

I haven't bought any individual stocks since Sep/Oct, the utility sector appears highly valued due to its run-up, even with a slight pullback. EXC is out there for analysis, but I can't get comfortable with it. Bought TOT and STO last fall, TOT dividend is ~ 4.5% now, but you have to pay foreign tax on the dividends.

I made some changes in one IRA, sold some appreciated securities and bought a toe hold in PQIIX for 25k. Pimco hired the equity mgt team from Thornburg/TIBIX that has performed very well the last 10-years. It may not be your cup of tea, and the institutional shares are the only class worth buying due to expenses. It also holds some foreign bonds, which may not fit your criteria.

LINK



Posted by LazloHollyfeld
Steam Tunnel at UNC-G
Member since Apr 2009
1588 posts
Posted on 2/22/12 at 12:30 pm to
Ares Capital - ARCC
Posted by Zilla
Member since Jul 2005
10599 posts
Posted on 2/22/12 at 12:41 pm to
why the change of style ?
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/22/12 at 12:43 pm to
quote:

why the change of style ?

quote:

I'm getting bored with day trading.
Posted by tirebiter
7K R&G chile land aka SF
Member since Oct 2006
9188 posts
Posted on 2/22/12 at 12:44 pm to
PS - that is a stressful way to be bored.
Posted by Zilla
Member since Jul 2005
10599 posts
Posted on 2/22/12 at 12:46 pm to

how about MO ? or CAG (although it's a little under 4%)
This post was edited on 2/22/12 at 1:01 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/22/12 at 12:47 pm to
quote:

Ares Capital - ARCC


Payout ratio over 150%. Almost a negative net cash flow for 2011. Dividend is likely unsustainable.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 2/22/12 at 1:00 pm to
UAN, WSR, RIG, CTL
Posted by PlanoPrivateer
Frisco, TX
Member since Jan 2004
2788 posts
Posted on 2/22/12 at 1:10 pm to
Interesting thread. Question, the dividend payout % you are using is it the trailing twelve months? Is it current dividend divided by earnings? I have some Ely Lilly and have Entergy on my watch list and one that hasn’t been mentioned yet is GE. GE cut their dividend in 2009 but it looks like they are trying to periodically raise it. Stock price is still about ½ of its all time high.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/22/12 at 1:12 pm to
quote:

so is it safe to assume you haven't done as well with day trading lately ? just curious

Not a safe assumption at all. I've made 29 trades in 2012 and lost money on only one trade.

Realized gains for the seven and half weeks of 2012 = $8,158.94 for an average of 33 basis points per trade.

I did a pro forma dividend portfolio spreadsheet of 17 companies which gives a yield of about 4.5% using about 1/3 of my total stocks portfolio.

I'm not going all in at one time, especially with the market where it's at today, but I'm gradually buying into some companies when they have a price pull back.
Posted by aaronb023
TeamBunt CEO
Member since Feb 2005
11774 posts
Posted on 2/22/12 at 1:15 pm to
i think you named most of the ones worth having already
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/22/12 at 1:16 pm to
quote:

Question, the dividend payout % you are using is it the trailing twelve months?
I'm using the Yahoo financial website rather than coming up with the numbers myself. After you enter the stock symbol look down the left hand side with all the related links to "Key Statistics." If you click on that it will give you on the lower right hand side the payout ratio. It appears to be a trailing 12 month ratio but I'm not 100% sure of that. Whatever it is, it's good enough for me to decide if I want to add a company to my watch list.

quote:

one that hasn’t been mentioned yet is GE. GE cut their dividend in 2009 but it looks like they are trying to periodically raise it.


I can't stand their CEO. He's incompetent, IMO.
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