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Message
re: Dividend Stocks
Posted on 12/28/18 at 12:11 pm to GoCrazyAuburn
Posted on 12/28/18 at 12:11 pm to GoCrazyAuburn
quote:
So, you don't think it's a bad idea to use dividend stocks in a taxable account?
frick no. you can only put so much in non taxable accounts. why not use taxable? I sure as hell do. the tax rate on them is not bad. i cannot just dump 60k into dividend payers in a retirement account like i can in a taxable.
2
Posted on 12/28/18 at 12:14 pm to LSURussian
Thanks for the response Russian.
I need to research more and I will, but I think I’ll go with what the majority of those here have been suggesting.
Or maybe I should just keep to mutual funds. I’ve done good on those so far.
I need to research more and I will, but I think I’ll go with what the majority of those here have been suggesting.
Or maybe I should just keep to mutual funds. I’ve done good on those so far.
Posted on 12/28/18 at 12:23 pm to Fat Bastard
Fair point
Posted on 12/28/18 at 1:26 pm to Volt
quote:
Thanks for the response Russian.
I need to research more and I will, but I think I’ll go with what the majority of those here have been suggesting.
Or maybe I should just keep to mutual funds. I’ve done good on those so far.
The answer to your original question would be the following:
You'll get more dividend income from Ford. Solely because they have a higher yield. For every dollar you put into ford, you'll receive ~7% back in the form of dividend.
That being said, it's never safe to buy a stock SOLELY because of the dividend yield. You also need to factor in the following: Ford does not regularly increase their dividend, O does. Eventually, if all else stays the same (which it doesn't), O will have a higher yield ON COST than your ford purchase because each quarter, O is increasing their dividend while F does not.
Posted on 12/28/18 at 1:52 pm to SouthMSReb
quote:But O's current dividend payout is over 200% of their earnings per share. And they only have $6.7 million of cash on hand.
Ford does not regularly increase their dividend, O does.
Maybe that's attributable to the industry they're in (huge amount of depreciation?
) but that jumps out at me. Is their dividend sustainable?? This post was edited on 12/28/18 at 1:56 pm
Posted on 12/28/18 at 1:57 pm to LSURussian
quote:
But O's current dividend payout is over 200% of their earnings per share. And they only have $6.7 million of cash on hand.
Maybe that's attributable to the industry they're in (huge amount of depreciation? ) but that jumps out at me. Is their dividend sustainable??
I'm not sure if you're looking at the payout ratio from the correct measures?
With REITs, you have to calculate the payout ratio as: dividend/FFO. EPS is not the correct denominator.
EDIT: just checked. Their 2018 FFO guidance is 3.13-3.20 and their annualized dividend is 2.64.
This post was edited on 12/28/18 at 2:02 pm
Posted on 12/28/18 at 2:03 pm to Volt
When thinking of dividend comparisons I like to think about what I'll make on $1,000.
No matter how much or little the stock costs it's all about the yield percentage.
If you buy 1k worth of stock yielding 10% then you'll get $100 that year
7% - $70
3.5% - $35
But yes, payout percentage and yearly increases is are two of the greatest factors when trying to build a dividend portfolio. Some have argued that V will be a great dividend player in 10-20 years so go ahead and start accumulating now even though the dividend is less than 2%.
No matter how much or little the stock costs it's all about the yield percentage.
If you buy 1k worth of stock yielding 10% then you'll get $100 that year
7% - $70
3.5% - $35
But yes, payout percentage and yearly increases is are two of the greatest factors when trying to build a dividend portfolio. Some have argued that V will be a great dividend player in 10-20 years so go ahead and start accumulating now even though the dividend is less than 2%.
Posted on 12/28/18 at 2:05 pm to SouthMSReb
I going by what's on Yahoo Finance page. It shows O's dividend payout ratio is 221.48%.
But I suspect you're correct that because O is a REIT adjustments have to be made to accurately reflect the payout ratio for O.
LINK
But I suspect you're correct that because O is a REIT adjustments have to be made to accurately reflect the payout ratio for O.
LINK
Posted on 12/28/18 at 2:08 pm to LSURussian
quote:O website
But I suspect you're correct that because O is a REIT adjustments have to be made to accurately reflect the payout ratio for O.
Maybe you see something here that can help us?
Don't reit's have to payout 90% of their revenue? Maybe the number on Yahoo isn't adjusted?
Posted on 12/28/18 at 2:09 pm to LSURussian
Yeah I think yahoo just defaults to EPS as denominator.
Posted on 12/28/18 at 2:16 pm to bayoubengals88
quote:I thought it was 90% of their profits, not revenue, to avoid paying federal income taxes on their earnings.
Don't reit's have to payout 90% of their revenue?
I remember when LAMAR Corporation (the billboard advertising company) changed their charter several years ago to become a REIT (I used to own shares in LAMAR) that the selling point to shareholders was the company wouldn't have to pay corporate federal income taxes if the company paid out 90% of its profits to shareholders.
Of course the shareholders would still have to pay fed income taxes on their dividends received but changing to a REIT would avoid the "double taxation" issue.
Posted on 12/28/18 at 2:19 pm to LSURussian
I'm sure you're right. I'm not good with terminology, though that's a major difference
Funny you mentioned LAMR. I added it to my watchlist a couple of weeks ago after I found it on a stock screener for healthy dividends.
Funny you mentioned LAMR. I added it to my watchlist a couple of weeks ago after I found it on a stock screener for healthy dividends.
Posted on 12/28/18 at 3:00 pm to LSURussian
For REITS you look at the AFFO payout ratio, or operating earnings. Any normal payout ratio will be over 100% for REITS.
Edit, just saw it was already posted. I have some graphics I can post later so I’m actually adding something to this conversation.
Edit, just saw it was already posted. I have some graphics I can post later so I’m actually adding something to this conversation.
This post was edited on 12/28/18 at 3:01 pm
Posted on 12/28/18 at 5:15 pm to Fat Bastard
quote:
you can only put so much in non taxable accounts.
After tax Roth Conversions out if a 401k or traditional do away with those limits.
Posted on 12/31/18 at 4:48 pm to leoj
quote:Please do
I have some graphics I can post later
Posted on 1/2/19 at 2:39 am to bayoubengals88
VZ and T have their ex dividend date coming up Jan 9.
Posted on 1/2/19 at 9:03 am to EveryoneGetsATrophy
Anyone loading up on F right now? Hovering around $7.70 with a dividend yield of 7.64%
Posted on 1/2/19 at 10:27 am to ThatsAFactJack
I bought some of it the other day. No telling how much lower it might go, but it looks like a great value right now.
Posted on 1/2/19 at 4:15 pm to EveryoneGetsATrophy
Liking these two
IRM
BX
IRM
BX
Posted on 1/3/19 at 11:05 pm to ThatsAFactJack
I bought T and F today, didn’t want to wait anymore.
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