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Started By
Message
re: Dividend Stocks
Posted on 12/23/18 at 1:56 pm to EveryoneGetsATrophy
Posted on 12/23/18 at 1:56 pm to EveryoneGetsATrophy
quote:
With the stock market going crazy right now are dividend stocks the way to go?
I like dividend stocks, but I'll play devil's advocate here to provide some discussion / things to think about
- A core part of the capital gains growth for good dividend stocks has been the low interest rate environment forcing people to look for quality alternatives to fixed income securities. If interest rates continue to climb, dividend stocks will face increase competition for investment $s which would hurt the capital value growth of the stock
- Dividend stocks that are "Dividend Aristocrats" have unusual incentive structure to protect the dividend possibly at the expense of long term business/profit/shareholder interests.
- If a company is paying a 7-10+% dividend it is implied that Wall Street believes it is either A) Unsustainable or B) The business is extremely high risk. There isno company offering a low risk 7-10+% return on investment
This post was edited on 12/23/18 at 1:57 pm
1
Posted on 12/24/18 at 6:45 pm to deeprig9
quote:
Looking at doubling down on F again too, but waiting for another true recession.
F down another 5.22% today to $7.63, how much lower are you gonna wait
I keep waiting to jump in this last few weeks cause I don't see any rationale for much of this sell-off and people are selling everything so I figure I'm gonna try to get it as low as possible. I know, novel concept.
Posted on 12/24/18 at 6:51 pm to Sho Nuff
T seems much safer than CTL but I have no data.
Look for payout ratio and dividend history.
Look for payout ratio and dividend history.
Posted on 12/24/18 at 6:53 pm to GenesChin
The only exception is REITs, which MUST payout 90% of profits to dividends.
Many are 7-12%
Many are 7-12%
Posted on 12/24/18 at 7:06 pm to EveryoneGetsATrophy
There are some out there that are starting to look really interesting. Cisco has a dividend yield over 3%. Apple is approaching 2% with a PE ration under 13. And I understand that they will evaluate their capital return strategy next year. The dividend could increase. Broadcom is at around $4.5% with a PE ratio of about 8. I am wondering how much downside there is to these for someone in it for the long term.
Posted on 12/24/18 at 7:33 pm to SloaneRanger
Apple has been berry berry good to me. The dividends have been icing on the cake over the years as I’ve increased my position.
Posted on 12/24/18 at 8:36 pm to Sho Nuff
quote:
Apple has been berry berry good to me. The dividends have been icing on the cake over the years as I’ve increased my position.
We have a very different philosophy, in my book the dividends are the cake as I am not a "trader".
The icing only comes if I actually sell, everything else is just fantasy if I am holding.
Posted on 12/24/18 at 9:47 pm to SloaneRanger
**Dividend ALERT**
BTI, British American Tobacco's ex dividend date is on Thursday 12/27
Stock price - $31.50
PE ratio - 1.42
Div yield - 8.48%
You read that correctly...BTI's earnings per share is $22.16 and the stock price is barely higher at $31. Insane.
If you buy the stock on Wednesday you'll collect the dividend on February 12th.
67.4 cents per share.
BTI, British American Tobacco's ex dividend date is on Thursday 12/27
Stock price - $31.50
PE ratio - 1.42
Div yield - 8.48%
You read that correctly...BTI's earnings per share is $22.16 and the stock price is barely higher at $31. Insane.
If you buy the stock on Wednesday you'll collect the dividend on February 12th.
67.4 cents per share.
Posted on 12/24/18 at 9:50 pm to bayoubengals88
quote:
If you buy the stock on Wednesday you'll collect the dividend on February 12th.
67.4 cents per share.
Noted and thanks
Posted on 12/24/18 at 10:19 pm to cave canem
Tobacco dividends have been notorious.
Posted on 12/24/18 at 10:21 pm to athenslife101
Yeah PM is up to 6.60% as well but their ex div just passed.
MO is currently 6.34% and their ex div was today
MO is currently 6.34% and their ex div was today
This post was edited on 12/24/18 at 10:22 pm
Posted on 12/26/18 at 10:15 am to bayoubengals88
D, Dominion is my favorite utility right now and I’ve been buying it for years.
There are some REIT’s I like in the data storage and long term healthcare spaces.
CONE
LTC
WELL
QTS
There are some REIT’s I like in the data storage and long term healthcare spaces.
CONE
LTC
WELL
QTS
Posted on 12/26/18 at 12:09 pm to bayoubengals88
quote:
You read that correctly...BTI's earnings per share is $22.16 and the stock price is barely higher at $31. Insane.
There is a good chance that FDA bans menthols. 25% of BTI's profits are from US Menthol sales
For a market cap of $72bil with some $50bil in debt from buying Reynolds American and it's Newport Menthols, that's a pretty significant risk
Posted on 12/26/18 at 12:39 pm to GenesChin
quote:ohhhh thanks. I knew that PE was too low.
There is a good chance that FDA bans menthols. 25% of BTI's profits are from US Menthol sales
Posted on 12/28/18 at 10:01 am to Mr.Perfect
quote:
Dividend stocks are ALWAYS the way to go.
^^^
What that guy said.
The past month, I've been loading up on the following:
EPD (Energy Midstream) Currently over 7% yield
ENB (Energy Diversified) Currently over 7% yield
ITW (Industrials) Current yield at 3.18%
ABBV (Pharm) Current yield at 4.7%
BPR (REIT) Yielding 8%
This post was edited on 12/28/18 at 10:02 am
Posted on 12/28/18 at 10:42 am to SouthMSReb
quote:
Dividend stocks are ALWAYS the way to go.
Where does everyone keep dividend payers? Roth?
I’m too worried about the tax implications of dividends to keep any in my brokerage acct.
Posted on 12/28/18 at 10:48 am to Oenophile Brah
quote:The maximum marginal federal income tax rate for dividends is 15%.
I’m too worried about the tax implications of dividends to keep any in my brokerage acct.
Posted on 12/28/18 at 11:27 am to LSURussian
Hey there fellas...Russian
I read this board daily and read additional info when I’m prompted by what is being discussed on this board.
I have a question that I can’t find an answer to.
If I have X amount of money to invest in any dividend stock, is it better to invest in F vs O since a share of F is $7xx and O is $63xx?
I’ll have more total shares, so does that equate to a higher total dividend payout?
Am I not looking at this correctly?
I read this board daily and read additional info when I’m prompted by what is being discussed on this board.
I have a question that I can’t find an answer to.
If I have X amount of money to invest in any dividend stock, is it better to invest in F vs O since a share of F is $7xx and O is $63xx?
I’ll have more total shares, so does that equate to a higher total dividend payout?
Am I not looking at this correctly?
Posted on 12/28/18 at 11:52 am to LSURussian
quote:
LSURussian
So, you don't think it's a bad idea to use dividend stocks in a taxable account?
Posted on 12/28/18 at 11:59 am to Volt
I'm not entirely sure what you're asking. 
So let me just tell you my philosophy when buying a stock for its dividend.
First of all, and this tenet has veto power on all the other reasons, I want to be comfortable that the current dividend is safe. If there is any doubt about the safety of the dividend, I don't buy the stock. I look at dividend payout ratio (how much of the company's EPS is it paying out in dividends) and the company's amount of cash on hand.
Second, what is the company's dividend history? I prefer regular, as in annual, smaller increases in dividend rather than less often but larger increases.
Third, only then do I consider the dollar amount of the dividend and the dividend yield (which I believe is your question).
Of course all things being equal (which they never are) more shares will equate to more dividends received. And lower priced shares will allow you to buy more shares than an expensive stock.
If this doesn't cover what you're asking, please use a real-life example of two companies and ask again. Thanks.
So let me just tell you my philosophy when buying a stock for its dividend.
First of all, and this tenet has veto power on all the other reasons, I want to be comfortable that the current dividend is safe. If there is any doubt about the safety of the dividend, I don't buy the stock. I look at dividend payout ratio (how much of the company's EPS is it paying out in dividends) and the company's amount of cash on hand.
Second, what is the company's dividend history? I prefer regular, as in annual, smaller increases in dividend rather than less often but larger increases.
Third, only then do I consider the dollar amount of the dividend and the dividend yield (which I believe is your question).
Of course all things being equal (which they never are) more shares will equate to more dividends received. And lower priced shares will allow you to buy more shares than an expensive stock.
If this doesn't cover what you're asking, please use a real-life example of two companies and ask again. Thanks.
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