dividend stocks

[Jarrod32]

agree about management - impressive ability to screw up as part of an oligopoly

assuming the share price will be cut too - if they spin off the newco as a special dividend of sorts

hoping the stripped down T and newco will still be yielding 4 or 5 percent combined. if not, i'm dumping both of them

Yeah, it looks like T shareholders will own somewhere around 70% of the new company. So T shareholders will get some spinoff shares of the new company. But some of the discussion I was hearing today is that the differences in the two businesses are a big part of the reason the combination didn't work. Same with Verizon and the Yahoo/AOL combination. T and VZ tend to be value/dividend stocks, while the media divisions fit more into the growth sector more akin to Netflix; something with a higher valuation and minimal dividend. Big reason the mergers didn't work for either. So I wouldn't expect much in dividends from the new company. The Time Warner division did generate a lot of cash flow, though, and because that is now lost it does sound like the T dividend is going to be cut significantly.

 

[MrLucky]

If the spinoff is classified as a distribution, the tax implication is different than if it was a dividend. And the reduced dividend may be a blessing in disguise.

 

[Uglytruth]

Berkshire Dumps Wells, Exits Synchrony, Sells Half Of Chevron, Adds New Stake In Aon: Full 13F Summary



While Berkshire's portfolio made headline news a few weeks ago when the company held its annual report, moments ago Berkshire Hathaway filed its Q1 13-F which provided a more detailed glimpse into its holdings as of March 31, 2021.



It showed two exits (Synchrony Financial and Suncor), one new position, a 4.1 million stake worth just under $1 billion in British insurer Aon Plc that is working now to close a deal with rival Willis Towers Watson, and perhaps most notably the nearly complete liquidation of Berkshire's remaining position in Wells Fargo.



As a reminder, in addition to dumping its entire stake in JPMorgan and M&T Bank, last quarter Berkshire also continued its gradual selling of its formerly favorite US bank, Wells Fargo, selling 59% of its holdings in Q4. Fast forward three months when there was no more Mr nice guy and as of March 31, Berkshire's position in Wells had collapsed by 99%, leaving Buffett with a tiny stub of just 675,054 WFC shares worth $26.4 million.



Elsewhere, Berkshire - whose long portfolio as of March 31 had a value of just over $270 billion - added to its holdings of Kroger, boosting that stake up 52%, and also bought more Verizon (+8%), RH (+1%) and also Marsh McLennan, adding 24% to its stake.



At the same time, Berkshire also cut quite a few holdings - 11 in total shown in orange below - and in addition to the near liquidation of its Wells holdings, what we found more interesting is that after revealing a 48.5 million stake in Chevron last quarter, worth just over $4 billion, Berkshire has trimmed this in half, and as of March 31 it held just 23.7 million shares, worth $2.5 billion. Is Buffett's infatuation with E&P over, or is the massive fund preparing to reallocate to the company which many had said it would buy all along, Exxon.



The full 13F summary is below (SEC link here).



https://www.zerohedge.com/markets/berkshire-dumps-wells-exits-synchrony-sells-half-chevron-adds-new-stake-aon-full-13f

 

[EO 11110]

read that the new T dividend will be around 1.18 per year. at today's stock price that's about 4 percent yield.

if newco results in a special dividend of newco shares, wonder how much that will shave off of T share price? yield could be significantly higher than 4 percent after that cut in T share price

 

[MrLucky]

Just because Berkshire is buying something doesn't make it a good investment for you. I remember when Buffet bought GE. GE needed money and yeah he bought millions of shares. But he got them at a special price! He paid $22/sh when the current price was $28/sh. So beware if Buffet is buying something. And watch out when he sells something. In the case of GE he dumped 10.5 million shares in 1 quarter.

 

[Mujahideen]

They were just saying the T dividend was safe and that they were moving forward with HBO. Trollol

I hope someone sues them. They really did mislead their investors.

but I will take a good look at the stock after the split.

 

[Mujahideen]

trollol

 

[EO 11110]

bought a starter position in AVGO, broadcom, this morning. yield is about 3.3 percent. forward earning are ridiculous with the chip mania

will be adding on drops of 10, 20, 30 percent from here. here = 434.xx

 

[MrLucky]

Have to take a minute to thank @EO for mentioning ABBV last year. As usual, I wish I had more.....

 

[EO 11110]

Have to take a minute to thank @EO for mentioning ABBV last year. As usual, I wish I had more.....

lol. you pulled the trigger. well done.

had to dump my avgo - thing popped up so fast

had to dump my ohi -- ceo said some stupid stuff on earnings call - worrying about rent collections next year

still holding abbv

 

[specsaregood]

well it appears those crazy redditors screwing around with shorted stocks has targeted one of my div holdings:

https://seekingalpha.com/symbol/BGS

 

[MrLucky]

They were also messing with BBBY, AMC and BB. So I figured, if you can't beat them, join them, and took a position. Wish me luck.

 

[Jarrod32]

A few months back, when they were doing the squeeze on GameStop, it resulted in a broader market decline that revealed a few buying opportunities for me. Doesn't look like we're going to get that this time...

 

[MrLucky]

My niece has started day trading. She was doing AMC and txted me. For the next 2 hours we exchanged strategies. One thing led to another and boom, I took a position. She laughed that she should have hopped on when I did. She had to leave AMC on a margin call but was happy anyway. I'm still in the money. We'll see what tmrw brings.

 

[MrLucky]

Oh my position is not in AMC and I'm still in the plus column.

She on the other hand had a tough day today but still made money. It's been a great bonding experience.

 

[edsl48]

Vale is yielding about 5 1/2% and is IBDs stock of the day
(I own stock in Vale and my stocks have a history of going down FYI)




Vale (VALE) is the IBD Stock Of The Day as the Brazilian miner is looking to exit the coal business. Vale stock is working on a new buy point.

The shift away from coal comes amid a global shift to cleaner-burning fuels. On Wednesday, Vale announced a settlement tied to the divestment of its Moatize coal operation in Mozambique.







Vale is also a major iron ore, nickel and copper producer. With the coal exit, Vale hopes to become a leader in low carbon mining and to be carbon neutral by 2050.

Meanwhile, the economic recovery is broadly lifting mining stocks. Plus, President Joe Biden's proposed nearly $2 trillion infrastructure bill lifted the mining sector.

Iron ore is a key ingredient in steel. Copper and nickel are key commodities used in electric vehicles. Therefore, Vale stock and its peers stand to benefit from higher infrastructure spending and the global shift to electric cars.

In a market with sectors showing strength in flux, investors should keep an eye on those that are still showing decent action as they set up again.

Several other miners besides Vale are trying to consolidate. But mining stocks tend to be volatile, driven by commodity prices. Rio Tinto (RIO) made IBD Stock Of The Day May 5 as it broke out on rising metal prices.

---

Vale Stock Technical Analysis
Shares rose 1.2% to close at 22.15 on the stock market today, after finding support just above the 10-week line two weeks ago. Vale stock is poised to form a flat base with a 23.12 buy point by Friday, according to MarketSmith chart analysis. It's roughly 4% below the entry.

The relative strength line for Vale stock has rallied close to highs. A rising RS line means that a stock is outperforming the S&P 500 index. It is the blue line in the chart shown. Vale's RS line has been uneven in the longer term.

Among other mining stocks, Rio Tinto fell 2% Wednesday, BHP (BHP) lost 2.1%, and Teck Resources (TECK) eased 1.35%.

Vale stock is No. 1 in its industry group, according to IBD Stock Checkup.

Its IBD Composite Rating, which combines key fundamental and technical metrics in a single easy-to-use score, is an unbeatable 99.

Vale holds a solid Relative Strength Rating of 90 out of a possible 99. That means it has outperformed 90% of all stocks in the past year.

And Vale looks good on other technical metrics as well. It shows five quarters of rising fund ownership and a superior A- Accumulation/Distribution Rating, a sign of institutional buying of shares over the past 13 weeks. As of March, 545 funds owned shares, up 2% from the prior quarter.

Vale Earnings and Fundamentals​

In 2021, Wall Street sees Vale earnings vaulting 389% to $4.65 per share as sales jump nearly 42%, according to FactSet. The Brazilian miner sports a mediocre EPS Rating of 69 out of 99, reflecting in part 2019's losses. Its SMR Rating is an A, on a scale of A to a worst E.

Vale went through a tough 2019, marked by a disaster that killed almost 300 people at its iron ore mine in Brumadinho, Brazil. In February, the miner reached a global settlement tied to the tragedy, helping to de-risk Vale stock.

On April 27, Vale reported record first-quarter earnings of $8.5 billion, despite a seasonally weak period and the pandemic's acceleration in Brazil. The coronavirus outbreak had forced Vale to restrict operations to essential workers at its sites. Now only a quarter of its workforce is still working remotely, Vale said.

In Q1, iron ore output rose 14% and nickel production rose 7%.

"Our beginning of the year was stronger than 2020," CEO Eduardo Bartolomeo said on an earnings call. "We produced in this first quarter, which is seasonally weaker, the same as we produced in the second quarter of 2020. This gives us a lot of confidence in reaching our production guidance for this year."

For 2021, Vale issued production guidance of 315 million-335 million tons.

Fourteen analysts rate Vale stock a buy and one has a sell, FactSet says.

Vale, IBD Stock Of The Day, Eyes New Buy Point Amid Exit From Coal

Vale is the IBD Stock Of The Day as the Brazilian miner is looking to exit the coal business. Vale stock is working on a new buy point.

www.investors.com

 

[EO 11110]

picked up a little mrk at 73. quarterly div is .65. think they are going to raise it late this year to .70
expect pharma scrips to rise - so many dr appointments canceled during covid mania. looking for some snap back on that
much of big pharma has been dead money for a good while. they are overdue for a run

 

[Jarrod32]

I added some Merck a while back, at a little higher cost (around $75 or maybe $77). They just did a spinoff to a company called Organon (similar to the Pfizer/Viatris spinoff) so I am not as convinced on the dividend increase...they lost a lot of revenue with the spinoff. But I do keep looking at MRK and PFE thinking that they are about the only stocks in my portfolio and watch list that are anywhere near buyable right now.

 

[EO 11110]

I added some Merck a while back, at a little higher cost (around $75 or maybe $77). They just did a spinoff to a company called Organon (similar to the Pfizer/Viatris spinoff) so I am not as convinced on the dividend increase...they lost a lot of revenue with the spinoff. But I do keep looking at MRK and PFE thinking that they are about the only stocks in my portfolio and watch list that are anywhere near buyable right now.

read that organon is expected to pay a good divy too. writer speculated 3% or so (at the higher spinoff price)

thanks for the heads up on mrk possibly not raising to .70

 

[EO 11110]

anybody nibbling on this dip?

picking up small amounts of MO and OHI - both high risk/high div -- over 7 percent

 

[specsaregood]

anybody nibbling on this dip?

not yet, I exited almost all my positions. waiting for a BIG pullback at this point.

 

[LarsonLarsen]

Good looking out. Picked up some OHI myself at 36.11

 

[Jarrod32]

anybody nibbling on this dip?

Looking around, but haven't found anything that really tickles my pickle yet. Trying to figure out if I want to get into some energy/oil or other commodity investments. That sector has taken a bit of a dive, but I'm trying to figure out if it is just a dip/buying opportunity or if the trend has turned back downward.

 

[EO 11110]

Looking around, but haven't found anything that really tickles my pickle yet. Trying to figure out if I want to get into some energy/oil or other commodity investments. That sector has taken a bit of a dive, but I'm trying to figure out if it is just a dip/buying opportunity or if the trend has turned back downward.

i own a passel of energy stocks. imo you can get better prices if you wait a bit. the energy stocks are due for bigger pullback

 

[Tbonz]

not yet, I exited almost all my positions. waiting for a BIG pullback at this point.

I'm looking at where things are at, what time frame are you thinking for the big dump in the market?

My guess 6-12 months from the looks of things.

 

[edsl48]

South African Miners have high risks but as many of us know Gold in and of itself is risky. Current price 16.97 with a 5.86% dividend yield.

Among leading growth stocks, our IBD 50 Stocks To Watch pick today is Sibanye Stillwater (SBSW), a gold miner that is now forming a base.


Sibanye Stillwater has been trading near its buy point of 20.78, which is 10 cents above the highest point in the cup base. Shares remain 5% away from the buy area. Last Tuesday, the stock reclaimed its 50-day line with a price gap-up. It's been trading above this area of support since then, although the stock slowed its momentum.

The stock's relative strength line is still close to new highs. Ideally, the RS line will be at new highs as the stock breaks out.

MarketSmith pattern recognition identifies the base as a fourth-stage pattern. But the stock's deep correction in the coronavirus bear market makes this an unconventional chart. It can be argued that the bear market reset the base count, and the current pattern is not yet late stage.

As is the case with natural resources stocks, commodity prices have a big influence.

Growth Stock Near Buy Zone​

The South African company's 84 Relative Strength Rating is above the minimum of 80 we like to see for growth stocks breaking out.


The gold miner currently ranks No. 4 among companies in its industry group in terms of Composite Rating, according to the IBD Stock Checkup tool.

Sibanye Stillwater works in the exploration and extraction of gold in South Africa. The firm owns and operates four underground and surface gold operations in the Witwatersrand region and in the southern Free State province in South Africa.

Sibanye Stillwater Earnings​

The South African firm reports financial results only on a six-month basis, rather than once per quarter. However, it does offer an operating update once per quarter.

In the most recent operating update, on May 6, the firm noted record quarterly financial performance with a 78% increase in adjusted EBITDA to $1.3 billion. The company also showed solid operational results from all segments.

The firm posted a sales increase of 40% to $2.46 billion in the six-month period ending in December 2020.

Since the company reports earnings on a semiannual basis, rather than on a quarterly-basis, it's best for investors in this case to focus on annual numbers. Sibanye's 2020 full-year EPS was $285.54 a share, according to MarketSmith. That was a huge improvement from losses recorded in the three previous years. For its 2021 EPS, analysts expect a much lower $5.03 a share and $4 a share the year after.

 

[EO 11110]

I'm looking at where things are at, what time frame are you thinking for the big dump in the market?

My guess 6-12 months from the looks of things.

best indicator that i have is the actions of frbny. when they start cutting back on the deluge of free 'money' - the fuse is lit

seems that right now they are intent on inflating prices of everything

 

[MrLucky]

one of my favorite companies recently had an IPO -- Academy Sports

it does not pay a dividend

i'm building a position in it for a long term hold. they were private forever, then bought out by some wall street vipers (kkr).

numbers look good (compared to dick's) and management says they intend to continue opening new stores and in new areas

they have been the go-to sporting goods store in many cities for decades, including my hood, houston

EO looks like you did good with this one. They seem to be doing just fine.

 

[EO 11110]

EO looks like you did good with this one. They seem to be doing just fine.

indeed. the company is doing well. the whole group of sporting goods stores have been blowing out earnings. academy, dicks, big 5, hibbett, etc

i've spent the weekend deep diving in medical sector. trying to find the right companies that fit my thesis. i have a couple of themes that i see playing out. fubar that the stocks i'm finding have already surged upward with everything else

i could really use a market correction about now

 

[Uglytruth]

 

[MrLucky]

I've been freeing up powder; selling dogs as this may be the best time to recoup what I can & taking profit on others. Now looking for new places. But good dividends are tough without that correction you speak of. May have to consider some growth stocks.

 

[chris_is_here]

Holding GLV, pays $0.10 dividend each month, 11% annual yield. X dividend date for July dividend should be announced next week.
Also, OCCI, 15% annual yield, recently increased the quarterly dividend to $0.54.

 

[MrLucky]

Thinking of dumping my KO and taking profits. Anyone think it has more to go? 52wk high was $56.48 at time of post it's $55.26.

 

[Jarrod32]

Thinking of dumping my KO and taking profits. Anyone think it has more to go? 52wk high was $56.48 at time of post it's $55.26.

I'm holding. It could well get to $60, but probably not anytime soon. It may very well see $50 again before it gets to $60, but should eventually get there. My yield on cost is just short of 4%, and while the dividend might not be increasing at a high rate...might just be a few pennies each year...the dividend appears to be pretty safe. So I'm gonna hold and keep collecting the divs. And this stock should hold up (particularly the dividend) well through any bear market.

I do have a fair amount of money in growth focused mutual funds...they have had a big runup in the past year plus. I am pondering taking some of those gains off the table and increasing my cash position.

 

[MrLucky]

I'm disappointed with KO. I expected better by now. I know their market got creamed with the lockdown, still...... I think there are better places to put the $ to work. If it goes down to $50 maybe I'll return.

 

[Jarrod32]

My buy price is mid-40s. I'm not seeing very many places more compelling to invest the money if I were to sell.
Yeah, KO is kind of boring but the dividend is solid and in the current market boring might just be all right...

 

[MrLucky]

See? All I had to do was threaten to sell my KO and it goes up.

 

[edsl48]

A marijuana stock that pays a dividend.
(DYOD and as a warning I hold shares in this company and my stock picks generally do not do to well)




Marijuana stocks come in many shapes and sizes, including medical marijuana stocks. Today's IBD 50 Stock To Watch, Innovative Industrial Properties (IIPR), is essentially a landlord for growers of medical marijuana, and one of the most targeted ways to play the space.

Dividends per share have been 2017 0.55
2018 1.20
2019 2.83
2020 4.47


Innovative, a four and a half year-old stock, is forming its first valid base since the long, deep pattern shaped during the pandemic bear market in 2020. The stock took its licks amid the market's heavy selling on Monday. But it remains about 10% below the next buy point at 222.18. It may be forming a handle that could potentially produce a lower entry point.

Innovative is a real estate investment trust. That is a type of business model frees a company from paying corporate income tax. In return, the company must distribute the bulk of its unused free-cash flow in the form of a dividend-like payout.

https://shop.investors.com/Products...rgt|PRSNL|2020|03|ibdd|na||573935&src=A00492A

Dividend-Paying Medical Marijuana Stock​

So, unlike most marijuana stocks, Innovative stock has an annualized dividend yield of 2.8%.

Innovative is incorporated in Maryland, with headquarters in Park City, Utah. It is a tight operation, reporting only 15 full-time employees as of Dec. 31.

IIPR keeps it focus tight, concentrating on buying properties used only to grow product for the regulated medical-use cannabis industry. Growers sell their properties to Innovative Industries, then lease back the property.

This allows them to move the assets off their books and redeploy capital elsewhere in the business.


California was the first state to legalize medical marijuana, in 1996. Since then, almost half of the U.S. state have followed suit. Those states are home to more than 200 million persons.

Company filings site ArcView Group projects sales of state-regulated cannabis in the U.S. will rise to nearly $34 billion by 2025, up from $12.4 billion in 2019.

Innovative acquired 20 properties in 2020, increasing its total to 66. It owned and managed about 5.4 million square feet in 17 states at the start of the year, 99.3% of which was leased.

Breakout Ready Ahead Of Earnings​

The medical marijuana stock rallied 144% in 2020. It has climbed less than 10% this year, spending five of the past six months in a 28%-deep consolidation.


The pattern bottomed out with a test of the 200-day moving average in mid-May. It climbed 29% to a July 14 high, about 8% below the 222.18 buy point. Shares have since cooled, pulling back to test support at the stock's 21-day exponential moving average. It is one day away from completing a valid handle.

If that occurs, it would lower the operable buy point to 210.67 — about 4% above where shares traded on Monday.

Innovative pared losses after an initial 4.8% drop on Monday. The bounce off the low showed support at the stock's 21-day line. That's a healthy sign for the budding handle.

Innovative bears a best-possible 99 Composite Rating from IBD. That places it as the top-ranked stock in the Finance-Property REIT industry group.

The medical marijuana stock's Relative Strength Rating is a solid 89. And it's relative strength line has swung back around to just below highs chalked up early this year. That is a good place to be as the company prepares to report its second-quarter earnings on Aug. 4.

IBD 50 Stocks To Watch: This Medical Marijuana Stock Is Not Really A Medical Marijuana Stock, It's A REIT

Medical Marijuana stock Innovative Industrial Properties is just below a buy point in a six month base, with earnings due.

www.investors.com

 

[MrLucky]

How most REIT dividends are taxed In the vast majority of cases. REIT distributions are mostly made up of ordinary income and are therefore taxable at the investor's marginal tax rate, or tax bracket.

Not a bad thing, just making a note of it.

 

[EO 11110]

Looking around, but haven't found anything that really tickles my pickle yet. Trying to figure out if I want to get into some energy/oil or other commodity investments. That sector has taken a bit of a dive, but I'm trying to figure out if it is just a dip/buying opportunity or if the trend has turned back downward.

jarrod - are you nibbling on any energy on this dip? i added to CVX and MPLX on this pullback