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dividend stocks
- Thread starter EO 11110
- Start date
Ummm what? Yikes. They couldn't have botched DirectTV any worse. I did own some ATT and a couple call options when it went from $30 to $40 but it just has terrible management and a gigantic pile of debt.
If your going to own ATT then consider selling covered calls for extra income. Pretty good strategy with lots of the bigger value plays IMO at this time.
If your going to own ATT then consider selling covered calls for extra income. Pretty good strategy with lots of the bigger value plays IMO at this time.
I’ve been a T hopium addict for years brother ....I wouldn’t do that.
I’m almost at the point now where it’s just a dog that has to pay idiots like me 7%+ just to own it .....I just don’t think the debt can be overcome and I’m not trusting the guys in the accounting department that say otherwise. Only a matter of time before divi goes bye bye or gets a huge haircut in my opinion.
All in on T is an interesting play. Actually, all in on anything is interesting.
The 7% dividend is nice as long as they don't cut it. Not to say that they will, but I've had numerous stocks cut dividends or even eliminate them. I had a stock cut their dividend from $1.55/sh/yr to $0.08/sh/yr. Yes, that is a whopping 8 cents a year! They made that cut in 2009 and never raised it again, even though the stock has regained much of it's price (from the time of the cut).
So just keep an eye on T.
The 7% dividend is nice as long as they don't cut it. Not to say that they will, but I've had numerous stocks cut dividends or even eliminate them. I had a stock cut their dividend from $1.55/sh/yr to $0.08/sh/yr. Yes, that is a whopping 8 cents a year! They made that cut in 2009 and never raised it again, even though the stock has regained much of it's price (from the time of the cut).
So just keep an eye on T.
i was conveying the strategy that they are professing. i'm skeptical of the 'green' mania beating traditional oil/gas. they tried this before - at one time they were the largest solar company in the world. then sold it off. now back at it again
they've also sold practically ALL of their chemical plants over last several years......and oil refineries too
they poured that money into upstream. so they went from a diversified supermajor to one concentrated on upstream.
now they are adding the green stuff to their concentrated bet on upstream.
they also have a HUGE trading desk operation that speculates in commodity markets
they've also sold practically ALL of their chemical plants over last several years......and oil refineries too
they poured that money into upstream. so they went from a diversified supermajor to one concentrated on upstream.
now they are adding the green stuff to their concentrated bet on upstream.
they also have a HUGE trading desk operation that speculates in commodity markets
They put a whole lot of sugar in this $T Kool-Aid
https://seekingalpha.com/article/4376063-t-hurts-understand-your-pain
And I’m drinking it.
https://seekingalpha.com/article/4376063-t-hurts-understand-your-pain
And I’m drinking it.
Is a screwing coming my way?
“Shares of Duke Energy gained on Wednesday after reports said the power giant rebuffed a potential takeover bid from NextEra Energy, the world's largest utility owner by market value, paving the way for another bid.”
The situation. Duke Energy (DUK) is an acquisition target of Next Era Energy (NEE). Duke just rebuffed Next Era’s offer. So what does this mean. Well for starters, a rebuff does not necessarily kill the attempt by NEE. If DUK is interested, they may just be playing “hard to get” and really want a better offer. I think I’m going to be screwed dividend wise if the merger actually does happen.
Company / Current Price / Dividend
DUK / $87.45 / $ 3.86 / 4.68%
NEE / $272.81 / $5.60 / 1.98%
Assuming I have 1000 shares of DUK. 1000 x 3.86 = $3860 dividend/yr
Now usually a premium is offered in a buyout, but since we have no idea if this is true, I’m assuming a direct exchange of 87.45/272.81 = approx. 0.3205 shares of NEE for every 1 share of DUK.
After the buyout, I’ll have 1000 x 0.3205 = 320.5 shares of NEE
Remember NEE dividend is $5.60/sh/yr, so 320.5 x $5.60 = $1794.80 dividend/yr.
Yearly dividend loss: $3860 - $1794.80 = $2065.20
If I sell my new NEE share to perhaps buy something with a better dividend, I will get crushed with capital gains.
Yep, getting screwed.
“Shares of Duke Energy gained on Wednesday after reports said the power giant rebuffed a potential takeover bid from NextEra Energy, the world's largest utility owner by market value, paving the way for another bid.”
The situation. Duke Energy (DUK) is an acquisition target of Next Era Energy (NEE). Duke just rebuffed Next Era’s offer. So what does this mean. Well for starters, a rebuff does not necessarily kill the attempt by NEE. If DUK is interested, they may just be playing “hard to get” and really want a better offer. I think I’m going to be screwed dividend wise if the merger actually does happen.
Company / Current Price / Dividend
DUK / $87.45 / $ 3.86 / 4.68%
NEE / $272.81 / $5.60 / 1.98%
Assuming I have 1000 shares of DUK. 1000 x 3.86 = $3860 dividend/yr
Now usually a premium is offered in a buyout, but since we have no idea if this is true, I’m assuming a direct exchange of 87.45/272.81 = approx. 0.3205 shares of NEE for every 1 share of DUK.
After the buyout, I’ll have 1000 x 0.3205 = 320.5 shares of NEE
Remember NEE dividend is $5.60/sh/yr, so 320.5 x $5.60 = $1794.80 dividend/yr.
Yearly dividend loss: $3860 - $1794.80 = $2065.20
If I sell my new NEE share to perhaps buy something with a better dividend, I will get crushed with capital gains.
Yep, getting screwed.
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A lot of you should look at writing covered calls instead of just large dividends. It supplements your income significantly and can even lower your risk. A little bit of education could go a long way.
https://www.investopedia.com/articles/optioninvestor/09/write-covered-calls-increase-income.asp
For instance, lets just say I own 100 shares of AT&T right now. I've owned it for 1 year+ for long term cap gains (say I bought at $25). It looks like it pays or goes Ex-Div on Oct 08. So you wouldn't want to sell the shares before that date. This isn't a stock that will be prone to huge surges so I'd look farther out. It looks like the next payout day would be Jan. So look at possibly selling the December Call option. Now, not a lot of premium here but you could look at selling the $30 call option for $0.50. You would pocket another $50 and get the ~$52 October dividend. Worst case scenario is the stock plummets (but you would lose less than just owning the stock, hence slightly less risk) or it goes above the strike price and someone buys your 100 shares for $30 in December.
https://www.investopedia.com/articles/optioninvestor/09/write-covered-calls-increase-income.asp
For instance, lets just say I own 100 shares of AT&T right now. I've owned it for 1 year+ for long term cap gains (say I bought at $25). It looks like it pays or goes Ex-Div on Oct 08. So you wouldn't want to sell the shares before that date. This isn't a stock that will be prone to huge surges so I'd look farther out. It looks like the next payout day would be Jan. So look at possibly selling the December Call option. Now, not a lot of premium here but you could look at selling the $30 call option for $0.50. You would pocket another $50 and get the ~$52 October dividend. Worst case scenario is the stock plummets (but you would lose less than just owning the stock, hence slightly less risk) or it goes above the strike price and someone buys your 100 shares for $30 in December.
I originally had another power company that I was quite happy with. Then Duke comes along and buys them. Duke sold for more than my company and I took a haircut with the number of shares I had. I wasn't particularly happy with that. But dividend for dividend they were pretty close. So that made me somewhat happier. Duk had since shown to be a good dividend payer. They just increased their dividend this quarter too.
I did that post as a warning to all dividend investors. Watch your holdings. Just because your dividend is rosy today, doesn't mean it will be forever.
@Voodoo - if I understood options better (then I do) I would be trading them. Maybe when I retire, I'll have time to figure it out.
I did that post as a warning to all dividend investors. Watch your holdings. Just because your dividend is rosy today, doesn't mean it will be forever.
@Voodoo - if I understood options better (then I do) I would be trading them. Maybe when I retire, I'll have time to figure it out.
It's really not that bad. Just start small (ie do the opposite of the idiots on Robinhood). Covered calls aren't that risky and most brokers will allow it with say Level 1 options trading. Sometimes you have to apply to add that ability. And just know that 1 option contract covers 100 shares. So you'd have to own at least 100 shares of a stock to write 1 call option. And there's really only two outcomes on expiration day, it expires and you keep the cash or you have to be willing to let the shares go at that price.
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
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
this guy says academy valuation is cheap, doubts growth going forward. i'm taking the other side - new stores and territories to grow the eps
https://seekingalpha.com/article/4377961-academy-sports-and-outdoors-cheap-probably-for-reason
https://seekingalpha.com/article/4377961-academy-sports-and-outdoors-cheap-probably-for-reason
Up in da north we have Dicks and Dunham’s and I don’t know how either keeps their lights on with the small amount of foot traffic they get. I’m not too familiar with Academy but going all in on retail (sporting goods) has got to be more than a little risky. If Covid shutdown part 2 gets implemented this thing could be a single digit stock overnight and you won’t have a dividend to collect while you ride out the storm.
academy houston stores stay busy -- annoyingly so
they are probably the largest gun/ammo dealers in the cities they operate in. they benefit from their competitors' anti-gun b.s.
they also dominate fishing gear sales, team sport equip, more. a real juggernaut....although i hear dicks has begun trying to take them on in this market
if i want a gun -- academy
if i want a rod/reel -- academy
if i want lures -- academy
if i want a basketball -- academy
if i want athletic clothing -- academy
this is typical for all of houston area -- which may be warping my investment thesis. i anticipate they'll do well in new markets. we'll see
they are probably the largest gun/ammo dealers in the cities they operate in. they benefit from their competitors' anti-gun b.s.
they also dominate fishing gear sales, team sport equip, more. a real juggernaut....although i hear dicks has begun trying to take them on in this market
if i want a gun -- academy
if i want a rod/reel -- academy
if i want lures -- academy
if i want a basketball -- academy
if i want athletic clothing -- academy
this is typical for all of houston area -- which may be warping my investment thesis. i anticipate they'll do well in new markets. we'll see
i was getting ready to add to T. it was getting too low.
can you sprinkle some of your magic on exxon? i'm taking a beating on that thing
i'm seriously thinking about taking a small position in kinder morgan - one of he bluest chips of the pipeline/terminal biz. they raised their dividend in this horrific oil market. div is over 8 percent
academy sports is up double digit percentage since i recommended on here - not bad in a flat market
can you sprinkle some of your magic on exxon? i'm taking a beating on that thing
i'm seriously thinking about taking a small position in kinder morgan - one of he bluest chips of the pipeline/terminal biz. they raised their dividend in this horrific oil market. div is over 8 percent
academy sports is up double digit percentage since i recommended on here - not bad in a flat market
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Haven't read the whole thread, so I may be repeating something already shared. Beware XOM. They have suspended 401k matching contributions and are currently billions of dollars in the red for the year. They are not too big to fail and, actually, the gargantuan size of the company may, in fact, be their doom. DYODD.
has your corp started layoffs yet? it's no time to be in mid/low management in the oil biz
i retired from supermajor oil corp last year. they pissed me off one too many times.
they operated under the opposite of your statement. felt like we were no longer a profit seeking venture -- more of a leftist government propaganda organization. profits were secondary (at best)
i retired from supermajor oil corp last year. they pissed me off one too many times.
they operated under the opposite of your statement. felt like we were no longer a profit seeking venture -- more of a leftist government propaganda organization. profits were secondary (at best)
No, sir, no layoffs. I am hourly. Been there 28 years and have watched the refinery morph from a Mom and Pop operation feel to a pawn in the corporate portfolio. We are the cash cow that finances all of the projects going on in the Gulf area, and have been told that is, in fact, our purpose. It's been a good ride, and I am thankful for, and blessed because of, my job- but I miss the water fights that we used to have on shift with the fire monitors. The company has no humor for that sort of nonsense these days.
So in light of the recent punishing of the stock market, is it time to consider averaging down?
EO, I share your pain on XOM although I'm not in perhaps as deep, the pain is still felt.
To -agcoacres- it's possible a dividend cut is what XOM needs. Investors often respond favorably to a dividend cut and boost share price. Not the best scenario as lower dividend is not what you invested for, but it may give you the chance to cut and run (sell) with less loss. Then be able to use your powder elsewhere more wisely.
EO, I share your pain on XOM although I'm not in perhaps as deep, the pain is still felt.
To -agcoacres- it's possible a dividend cut is what XOM needs. Investors often respond favorably to a dividend cut and boost share price. Not the best scenario as lower dividend is not what you invested for, but it may give you the chance to cut and run (sell) with less loss. Then be able to use your powder elsewhere more wisely.
