gig em 02 said:
Aggiesincebirth said:
59 South said:
oldarmy1 said:
XOM also showing a reversal bottom early on.
That dividend well over 5% right now is enticing especially in retirement accounts.
I've mentioned that to my parents before. If you can live off the 4% rule (in this case 5% rule) then I would definitely take a look at XOM or Shell for a retirement account. Shell is 6.5%.
I know there is "no such thing as too big to fail" but I would be very tempted if I was older to not dump a huge chunk into these stocks knowing you are living off dividend income with little appreciation opportunities and the biggest risk is that they cut their dividend.
At a UBS meeting last night I heard it pretty perfectly I thought. The head investor (not a UBS guy) stated that oil stocks are like bonds and people should start investing as such. Be happy with the dividend but don't expect much appreciation.
What do y'all think about amlp?
Late reply here. I wouldn't mess with it unless you believe that natural gas is near its bottom.
With this and many other high-dividend ETFs, equity preservation and dividend sustainability are concerns.
The midstream darlings like AMLP, MLPA, ZMLP have very negative total market returns for the 1 year, 3 year and 5 year windows. They might pay out 8-10% dividend, but if you're losing 15-30% of your equity each year - what good is it? So again, if you think the gas market as a whole is gonna rebound, these might be a good idea, but I wouldn't put my money into anything related to NG right now.
If you're looking for an ultra-high-dividend ETF (over 6%), I would recommend real estate ones like REM or MORT which would obviously be subject to a real estate crash, but over the next year, Real Estate looks like a much safer option than NG.
