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I just bought a bunch of DOW stock. If you see me shaking a cup at Christmas, be kind.
Posted on 9/23/22 at 2:06 pm
Posted on 9/23/22 at 2:06 pm
967 shares. God help me.
Posted on 9/23/22 at 2:07 pm to DiamondDog
Divy is higher than the P/E ratio
Posted on 9/23/22 at 3:04 pm to bayoubengals88
Break that down for me like I have no idea what I'm doing.
Because I do not.
Because I do not.
Posted on 9/23/22 at 3:12 pm to DiamondDog
Dow pays 6.39% annual dividend so $6.39 per every $100 you own.
PE is price/annual earnings per share. So current price is $43.55/$8.93 (estimated earnings per share) = PE of 4.87 which is quite low. The market PE is roughly 18.
Dow is a low growth company so it's not that unusual to be well below the market multiple but 5 is really low.
PE is price/annual earnings per share. So current price is $43.55/$8.93 (estimated earnings per share) = PE of 4.87 which is quite low. The market PE is roughly 18.
Dow is a low growth company so it's not that unusual to be well below the market multiple but 5 is really low.
Posted on 9/23/22 at 3:33 pm to fallguy_1978
Be careful. Sometimes when you see a P/E (trailing) below 5, the future PE ends up negative.
Posted on 9/23/22 at 6:59 pm to DiamondDog
May have jumped in too early, you don’t want to fight the Fed. Until the Fed signals they are done raising rates, all asset prices will fall. Interest rates are like gravity, when they go up asset prices come down and the inverse is true. The yield is great but you could get a 1yr treasury paying 4.25 and That’s the risk free rate of return. So your dividend is 2% higher with the possibility of losing another 10% on the share price. Long term you will be fine ????
Posted on 9/24/22 at 12:13 am to LSUtoOmaha
quote:
Be careful. Sometimes when you see a P/E (trailing) below 5, the future PE ends up negative.
You think Dow is going to go from making 6.5 billion to losing money over night? That seems unlikely. Particularly when much of their business is at least semi recession resistant at least.
This post was edited on 9/24/22 at 10:09 am
Posted on 9/25/22 at 10:14 am to MarineVet
quote:
The yield is great but you could get a 1yr treasury paying 4.25 and That’s the risk free rate of return. So your dividend is 2% higher with the possibility of losing another 10% on the share price.
I'm so glad I figured this out MONTHS after it was too late Dividend stocks didn't have much allocative competition with interest rates being so low, forever. Now they do...but when you're months late figuring that out, what do ya do? Is there anyone left behind me who was this slow?
Posted on 9/25/22 at 6:09 pm to DiamondDog
This is called catching a falling knife. Good luck.
Posted on 9/25/22 at 6:31 pm to AUViclic
Downvote away but dividends are just an accounting trick, not like interest. The share price gets adjusted down by the dividend amount before open on the ex-dividend date and paying dividends to those who DRIP in stock is dilutive.
Posted on 9/25/22 at 9:55 pm to DiamondDog
As someone who works for Dow, and is a share holder…
I would not have bought it lol
I would not have bought it lol
This post was edited on 9/25/22 at 10:07 pm
Posted on 9/26/22 at 11:31 am to Brobocop
no faith in the company you work for? What are you not telling us?
Posted on 9/26/22 at 12:00 pm to DiamondDog
Probably would purchased a few hundred shares every other month with the way the market is going. The good thing is you didnt buy at the top
Posted on 9/26/22 at 3:14 pm to b-rab2
He's trying to tell you the honest truth...
Posted on 9/26/22 at 7:06 pm to Brobocop
quote:
As someone who works for Dow, and is a share holder… I would not have bought it lol
Same. It will fall as long as the rest of the economy falls. I have a ESPP plan maturing in October, I’m selling as soon as I get it. But will try and buy back next year.
I think long term you are good as the company is solid. But it rides the wave big time, like every thing else.
Posted on 9/26/22 at 8:50 pm to Elusiveporpi
quote:
I think long term you are good as the company is solid. But it rides the wave big time, like every thing else.
My time horizon is 30 years. I just want to collect massive dividends with good upside.
I think DOW sees 70 again eventually. It's not that farfetched.
Posted on 9/26/22 at 9:50 pm to fallguy_1978
The only issue is the forward looking earnings represent a significant decrease to earnings. Assuming the dividend is proportionate to earnings you will see that cut as well leading to a stock price decrease. Like it in concept and maybe one to enter in a staggered approach with 25% investment now and if it falls add more.
Posted on 9/28/22 at 2:57 pm to DiamondDog
quote:
My time horizon is 30 years. I just want to collect massive dividends with good upside.
I think DOW sees 70 again eventually. It's not that farfetched.
Dow looking pretty good today. Looks like OP got in at the right time for a quick profit if he wants it.Just kidding.My two Chemical companys are LYB and EMN . I have been buying them up at these low prices. The Divs are great to.
I think in a few years we will be like i cant believe they were this cheap. I'm still buying in intervals though.Still expect more pain by end of year and start of next year. So will be buying more later. good luck.
This post was edited on 9/28/22 at 3:09 pm
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