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Active Since 01/05/08
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microcaps
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Tell me what you think (pros and cons) of these high dividend paying stocks (and if any of these you like) : - ACAS - HTE - CNE - ERF - PGH - PWE - PWI - PVX None of these above are Subprime Lending, Home building or Mortgage related that we know most likely will remove/reduce their dividend. Also what do you think about: - BAC - C - WB - WM - MO - AXP
Posted January 10, 2008 (10:59PM)
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victork
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MOs Dividend is safe, Cs dividend will get cut 40-50% (my opinion). I like GSK at around 4.5%. Bought some at 48 and wanted to buy more but it has run up. I am waiting for a pull back. I also like MO in this environment.
Posted January 10, 2008 (11:29PM)
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Moose
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MO's going to also spin off their Euro cigs biz. Should be a VERY interesting deal. VGR's also got a very high dividend plus a 5% stock dividend (I own VGR)... and is getting a bit of bashing for being a consumer stock... but cigarettes are something that are very hard to give up... and something that people who smoke cannot go without. I realize that Vice is not for everyone, but I see those stocks as being a good investment... and always will. Just review my blogs. :) I like ACAS and similar types of CEFs... I believe many are below their NAV and still producing. Mine (AINV) still produced a 52 cent dividend... something that shows a good discipline in getting good debt. Canadian Trusts like HTE, PGH, and AAV were messed up due to the tax situation that the government up in the Great White North didn't like. They has a lot of people who wanted a decent stock with a high current yield. I believe that they were favoured by the seniors... I'm reminded of NZT and their situation a while back with their government a year ago (or so). BAC... I wish they would just go away. I can't stand them. Absorbing CFC's not a good move. There's going to be LOSSES... and their dividend is in jeopardy due to that, IMHO. Not a good move to me... but still, it will keep CFC out of receivership and will at least ensure that no government intervention is needed. Though I wonder how many people will switch out if they can from CFC, since BAC's customer service is notariously garbage (that's a nice way of putting it) C... I've commented on them before... Prince Al-Waleed will save them before they go down. WB I won't touch either for personal reasons. WM's going to be bought by JPM... I'm moving the couple of bucks that I have from them then. I don't want JPM having my money. AXP's an interesting story... Today's bleeding might be a buying opportunity if you like them. AXP's still got that elite status though.. there's still something to having one of their cards, even if it's through BMO's Harris (like I have). They still have way too many higher class cards that give those people a lot of benefits and aren't as affected by these economic swings... If you like financial, look Canadian... I'll say it until I'm blue in the face. Yes, I own BNS... note that Canada isn't affected by this subprime as the US is... do your own due dilligence though.
Posted January 11, 2008 (09:45PM)
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victork
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VGR looks interesting with an 8.2% dividend. Only thing I worry about is that the dividend/share ($1.60) is more than their earnings/share (1.15). That tells me that their dividends could be in jeopardy if earnings starts to fall. Most company has at least 1/2 d/e ratio.
Posted January 12, 2008 (12:20AM)
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k-man
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Do your due diligence, but I believe any BDC such as ACAS, AINV, and MCGC should be safe. I mention MCGC because they announced on 10/31 that they will continue to see 1.76/share in dividends for 2008. Their divy yield is around 15-16%, depending on where the stock winds up at the close of trading.
Posted January 13, 2008 (07:29PM)
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microcaps
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Thanks for all the input Moose, Kman, Victork. I will look at them all. In general I'm very skeptical with stocks that give (or current yield) more than 10% to me it just doesn't makes sense (cause I thought people will bid the stock and make te yield lower or the dividend expected to be cut).. .. I just started buying dividend paying stock not too long time ago just to provide some diversification to my portfolio.. and I choose BAC and HTE as a start.. I was planning to buy MO but never really get to buy them (even before they spun off Kraft).. I wasn't sure if I want to encourage people to smoke.. that is tough becuase thinking that (socially responsible investing, also afraid that MO will continue to get troubled by lawsuit from state governement etc) way eliminates a lot of good candidates.. I missed a ten-bagger in RICK (regret a bit but if I go back I probably would have done the same thing.. i.e. not to buy it due to the nature of their business).. K-man, I've never heard AINV and MCGC but I briefly checkd them and they look very interesting. Victork.. that's a good advise.. to see if the d/e ratio is above 1, or too close to 1... I'll check out VGR.. maybe if it dropped more I'll get some (when the yield is 10%+) Moose, I'll review my HTE investment again.. I already bought it and so far they have been paying the dividend every month and I was lucky not to buy them at the peak... and I still can't believe the price dropped again to below (for some time) my purchase price after seeing the dividend yield goes above 15%.. I'll stay away from C and WB.. i the mean time I will continue to research AXP.. maybe I can get some of their shares durin the dip.. it seems that they have their own niche that might be hard for teir competitors to take (the market share) away from them.. I don't know them much until last year when I get my first American Express card and I started to understand why they standout compare to other cards.. Again, Thanks folks. Sidarta Tanu
Posted January 13, 2008 (11:24PM)
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victork
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I got a very good one for you. NLY! They have a 7.3% dividend that they just raised by 30%. They are at a 52 week high so there must be something to this stock that is attractive. From what I read so far, they are levered to the feds lowering interest rates and have capital to buy high quality mortgages as the banks are forced to sell them off. What do you guys think? I just started a new position today.
Posted January 15, 2008 (03:53PM)
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EnglishTeach
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Check out SBR. Owned it a couple years back. Monthly dividends. Stock tends to cycle between $40 and $50. Pays somewhere around 6% to 9%. I wouldn't pay more than 42.50 for it though. Wait long enough and it will drop back down. The most recent announced dividend is the highest of the last 12 months: $0.48 ...thinking of getting back into it considering the recent problems in the overall market.
Posted February 07, 2008 (07:12PM)
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snowman
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ERF, PGH, PWE would be a yes for me. BAC is the only other one I like, but wait two months. It will hit new lows. WM will be BK, so it does not pay a dividend as far as I am concerned, you could short it but there is the risk of a buy out in this crazy market, a phony one I mean. So keep an eye on WM and if a buyout is announced step in and buy all the 11 month puts you can that first day. Stay away from WB too. The banks are the ones I did reasearch on. The oil, gas ones I only glanced at SEC filings.
Posted February 10, 2008 (10:06PM)
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EnglishTeach
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Re: VictorK. I like the NLY idea. Especially if you think there will be a couple more 0.25% cuts from the Fed.
Posted February 13, 2008 (01:05PM)
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victork
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Thanks English! I watch Mad Money and listened to the CEO talk and it appears that there exposure to the subprime mess is minimal. Plus they have cash to buy loans on the cheap. I believe we will get more rates cuts in the future and who can beat a dividend of around 7% and keeps hitting a 52 week high in a lousy market. I have cash on hand and waiting for it to get back into the 19s and hopefully into the 18s. HCBK is also a well run bank since the average down on mortgage was 40%. Only 2% div and P/E of 27 which is high, but they are a well run bank.
Posted February 13, 2008 (02:20PM)
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victork
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FRO has a 19% dividend.
Posted February 13, 2008 (02:21PM)
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spshapiro
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these I own: FAX 6.94%; CLM 18.88%; NRT 6.91%; NYT 4.92%; PEI 8.85%; PDS 7.55%; PFE 5.73%; DRH 7.2%; SSW 6.33% most I have held for years
Posted February 19, 2008 (08:06AM)
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Will Profit
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spshapiro, You don't care for dividends to much. (ha ha!!)
Posted February 19, 2008 (08:24AM)
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optionstrategy
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Anyone mention KMP and KMR, Kinder Morgan. A great company that owns gas pipelines. Has raised dividends every year for many years and over 6%.
Posted February 19, 2008 (12:49PM)
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spshapiro
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Concerning the high dividend stocks cited above. They constitute just under 15% of my holdings; yet they yield 1.3% on the total portfolio. The portfolio as a whole yields just over 3% in dividends. Over the last ten years I have averaged another 4-7% in selling options (covered calls and puts). Generally less than 15% of them ever get exercised. So I start the year knowing that I have anywhere from 7-10% in the bank. With any moderate luck in stock selection, I should be able to do at least 12-15% per year. Which in fact has been the case for more than half the time since the mid 80's, when I first started investing in high dividend stocks. Yeah, I see some merit in them.
Posted February 19, 2008 (07:54PM)
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optionstrategy
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Do you sell puts and calls against your high yield stocks? Are they sold OTM so the stock doesnt get called on the calls?
Posted February 23, 2008 (09:31AM)
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Will Profit
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spshapiro, please don't get me wrong. I like dividend payers.
Posted February 23, 2008 (11:40AM)
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spshapiro
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in response: To Will, I assume you like dividend payers, otherwise you wouldn't read this board. In general, I evaluate performance over the long term. ROI's under a year, have no interest to me. 3-5 years has some meaning; after 10 years you will know if you are on the right track. If a portfolio returns better than 3% a year, after 5 years there should be almost 20% more, since I reinvest my dividends. That provides a certain ballast, which allows me to easier say "yeah, maybe I could do better by dropping this clinker". It is easier to weed out chaff when you see that on the whole you are moving ahead. To opt.str, some of the stocks cited are not optionable. I don't select on that basis, but if the stock is optionable, I generally enter the position by selling puts. If I am good/lucky I can generally sell 2-4 month puts 3 or 4 times before the stock is put to me. I generally will cover a put that I get a large gain in the short run, and then do it over again. Once I own the stock I sell OTM calls, which I don't cover unless I can buy back for next to nothing. I abide by the principle that one never goes broke by taking a profit.
Posted February 23, 2008 (12:56PM)
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djk
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USMO started dividends a couple years ago and despite the recent drop in the stock price management decided to continue. At $0.65 per, the current yield is 24%. 95% institutional owned, this currently less than $11 a share stock is one of those that I really do not care much how it moves, although I wish it was at least 2 bucks higher, as long as the suits keep signing off on the quarterly payout. In these times it seems to good to be true and most likely will fade with the coming changes. Anywho, it qualifies as the best dividend stock I know of right now.
Posted February 23, 2008 (06:43PM)
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