• "Spreading the ideas of freedom loving people on matters regarding metals, finance, politics, government and many other topics"

dividend stocks

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,930
Reaction score
27,805
Location
OTR
Their profit seems to be improving, but stock price in a long term down trend. Hmmm...

...seems like a good time to buy then if holding for long term. The dividend is over 7%.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
...seems like a good time to buy then if holding for long term. The dividend is over 7%.

i'm in ATT at a higher price than it's trading at now. everything i read assures me that the div is safe. seeking alpha has a lot of articles with financial analysis on it
 

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,930
Reaction score
27,805
Location
OTR
i'm in ATT at a higher price than it's trading at now. everything i read assures me that the div is safe. seeking alpha has a lot of articles with financial analysis on it

I’m converting my entire portfolio to T today. Crazy I know, but no nuts no glory.
 

Voodoo

Midas Member
Midas Member
Platinum Bling
Site Supporter ++
Joined
Mar 31, 2010
Messages
5,699
Reaction score
9,120
Location
Deep Underground Bunker
I’m converting my entire portfolio to T today. Crazy I know, but no nuts no glory.

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.
 

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,930
Reaction score
27,805
Location
OTR
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.

Someone made a point that it would actually be beneficial for them to do a stock buyback considering the dividend they pay vs the interest on borrowed money.

I’m in at 28.48 a share.
 

Voodoo

Midas Member
Midas Member
Platinum Bling
Site Supporter ++
Joined
Mar 31, 2010
Messages
5,699
Reaction score
9,120
Location
Deep Underground Bunker
XOM with a $35 handle. That's kinda amazing considering how long that was the largest stock in the US. Hadn't noticed that they were acting so poorly as crude prices were holding on.

It's clearly been virus back on the past week or two.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
I keep glancing over at BP with an 18-handle, and I am trying hard not to be tempted by it. But I keep looking at it...

they are the woke leftist oil major. carbon neutral, solar, wind, etc. also big on preferring gays, women, etc
 

Mr Paradise

Midas Member
Midas Member
Joined
Dec 3, 2011
Messages
9,804
Reaction score
11,054
Location
Lake Superior
I’m converting my entire portfolio to T today. Crazy I know, but no nuts no glory.


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.
 

MrLucky

Gold Member
Gold Chaser
Sr Site Supporter
Survivor
Joined
Apr 27, 2011
Messages
2,349
Reaction score
3,210
Location
Rock <me> Hard-Place
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.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
I don't care about any of that as long as the dividend keeps coming, and it gives me a good yield.

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
 

Uglytruth

Super Moderator
Mother Lode
Midas Supporter ++
Joined
Apr 6, 2011
Messages
16,817
Reaction score
38,020
Green is all about .gov subsidies. They treat it like a hot potato and dump it as soon as they are paid to get rid of liabilities. Wash, rinse, repeat.
 

MrLucky

Gold Member
Gold Chaser
Sr Site Supporter
Survivor
Joined
Apr 27, 2011
Messages
2,349
Reaction score
3,210
Location
Rock <me> Hard-Place
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.
 
Last edited:

Voodoo

Midas Member
Midas Member
Platinum Bling
Site Supporter ++
Joined
Mar 31, 2010
Messages
5,699
Reaction score
9,120
Location
Deep Underground Bunker
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.
 

Voodoo

Midas Member
Midas Member
Platinum Bling
Site Supporter ++
Joined
Mar 31, 2010
Messages
5,699
Reaction score
9,120
Location
Deep Underground Bunker
A little bit lower, perhaps in October I'd look at a stock like 3M. They've got a nice yield 3.68% (possibly get around 4 or more if it drops) plus a decent volatility for options.
 

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,930
Reaction score
27,805
Location
OTR
Soon I’ll have all the $T that I’ll ever be comfortable holding. I won’t add any more after that and I’ll reinvest the dividend elsewhere.

To diversify I’m going to remake a pie that’s 75% DGRO, 12% STAG and 13% $O.

I think this is a pretty solid position. DGRO doesn’t have reits.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
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.

that's brutal. i would hold to see how it shakes out. another bidder could come in and jack up the price even more - or NEE raises their offer
 

Jarrod32

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Aug 7, 2012
Messages
424
Reaction score
966
Location
South Central Nebraska
A little bit lower, perhaps in October I'd look at a stock like 3M. They've got a nice yield 3.68% (possibly get around 4 or more if it drops) plus a decent volatility for options.

I love 3M...I would love to own some. It has just been a bit rich for me. But if we get a big market pullback, I am in a position where I can add some. Must....be....patient....
 

MrLucky

Gold Member
Gold Chaser
Sr Site Supporter
Survivor
Joined
Apr 27, 2011
Messages
2,349
Reaction score
3,210
Location
Rock <me> Hard-Place
that's brutal. i would hold to see how it shakes out.

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.
 

Voodoo

Midas Member
Midas Member
Platinum Bling
Site Supporter ++
Joined
Mar 31, 2010
Messages
5,699
Reaction score
9,120
Location
Deep Underground Bunker
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.

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.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
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 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world

Mr Paradise

Midas Member
Midas Member
Joined
Dec 3, 2011
Messages
9,804
Reaction score
11,054
Location
Lake Superior
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

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.
 

keef

Пальто Crude
Midas Member
Joined
Nov 11, 2011
Messages
8,617
Reaction score
8,758
Location
House of Barbaric Relics tour guide
Hows ''Da Yooper Tourist Trap" doing? Haven't been through Ishpeming in 20 years.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
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
 

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,930
Reaction score
27,805
Location
OTR
Energy Transfer In-Depth Analysis Update | 20% Dividend Yield?


That guy gives a very detailed analysis. Yikes.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
i have a tiny position in ET and a couple other high risk/reward MLPs. kind of like buying distressed junk bonds. waiting for somebody to start bombing something in the mideast :)

havent watched the full vid yet...but will
 

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,930
Reaction score
27,805
Location
OTR
7FAFDF58-2989-4E47-98C9-B7163870E76A.jpeg


T up 6.4% for the day. I averaged my share costs down to 28.36 on the recent weakness. I’m looking kinda smart right now.

Checking out PRU right now.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
View attachment 185437

T up 6.4% for the day. I averaged my share costs down to 28.36 on the recent weakness. I’m looking kinda smart right now.

Checking out PRU right now.

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
 
Last edited:

agcoacres

Silver Member
Silver Miner
Site Supporter
Joined
Mar 31, 2010
Messages
114
Reaction score
334
Location
Montana
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.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
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.

i was shocked when they chose the dividend over the 401 match. imo a div cut is coming if the flu shutdowns continue into 2021
 

agcoacres

Silver Member
Silver Miner
Site Supporter
Joined
Mar 31, 2010
Messages
114
Reaction score
334
Location
Montana
i was shocked when they chose the dividend over the 401 match. imo a div cut is coming if the flu shutdowns continue into 2021
I work for a major US oil company. Share price and shareholder return drive all decision making, period. XOM is in big financial trouble. They are 10s of billions in the red.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
I work for a major US oil company. Share price and shareholder return drive all decision making, period. XOM is in big financial trouble. They are 10s of billions in the red.

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)
 

agcoacres

Silver Member
Silver Miner
Site Supporter
Joined
Mar 31, 2010
Messages
114
Reaction score
334
Location
Montana
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)
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.
 

EO 11110

UNBANNED
Mother Lode
Site Supporter ++
Survivor
Joined
Jul 31, 2010
Messages
19,687
Reaction score
20,138
Location
clown world
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.

are you a member of any of their 'affinity' groups? my lame ass company had affinity groups for everybody except me and people like me

you guys at max rates? jet is in the shitter -- so cranking out more diesel? shipping it overseas?

have a sulfur unit/system so can run the sour?
 

MrLucky

Gold Member
Gold Chaser
Sr Site Supporter
Survivor
Joined
Apr 27, 2011
Messages
2,349
Reaction score
3,210
Location
Rock <me> Hard-Place
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.
 

OverOver

Gold Member
Gold Chaser
Midas Supporter
Joined
Apr 1, 2010
Messages
794
Reaction score
696
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

I had never been into an Academy until a few months ago. Around Houston and BCS and Bastrop they have always had a good crowd. I've bought mostly clothing. I like the layouts. Prices aren't too bad and some of the sales are terrific.. Got a 15% off coupon for getting their store credit card!!!