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Best dividend stocks?

10,295 Views | 60 Replies | Last: 3 yr ago by richardag
Grown Pear
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tam2002 said:

Appreciate the input. Got 100k in a CD I'm wanting to spread around on some of these to cash in for a long time
Not a bad strategy, especially if you have a long horizon.

Just be very careful chasing dividend. Keep in mind dividends are not guaranteed and can easily be slashed. Particularly in a market like we're in. Even with attractive entry values, if dividends get cut not only do you lose out on the income you were chasing but in all likelihood the market value of the stock drops as well.

I say this not to scare you out of the strategy, it just bit me hard years ago.
tam2002
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For sure appreciate the input. So far I've put a little more than half into RDS-B, JNJ, O, and VZ. Holding the rest for a bit to see if we retest the bottom to consider some others
cisgenderedAggie
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Grown Pear said:

tam2002 said:

Appreciate the input. Got 100k in a CD I'm wanting to spread around on some of these to cash in for a long time
Not a bad strategy, especially if you have a long horizon.

Just be very careful chasing dividend. Keep in mind dividends are not guaranteed and can easily be slashed. Particularly in a market like we're in. Even with attractive entry values, if dividends get cut not only do you lose out on the income you were chasing but in all likelihood the market value of the stock drops as well.

I say this not to scare you out of the strategy, it just bit me hard years ago.


Like APA that I bought for $18 in December and didn't sell for $30+ in Jan.
FrontPorchAg
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tam2002 said:

For sure appreciate the input. So far I've put a little more than half into RDS-B, JNJ, O, and VZ. Holding the rest for a bit to see if we retest the bottom to consider some others


That's a good basket.
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FrontPorchAg
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WFC just now hitting it's low for the year.
  • Off 50% from it's Jan 1st price
  • Dividend at ~8%, no cuts as of yet
  • The largest holder of mortgages in the country
  • They have asset caps for now from the Fed
  • UBS lowered the forecasted earning more than comparable banks
It might be a good long term hold if you think we will have a decent recovery but enter at your own risk.
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permabull
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ToddyHill
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EPD, presently paying a 10% dividend.
GE
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Slight detour - best dividend Vanguard fund?
cisgenderedAggie
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DVY has done well for me over the years
jamey
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Mtn_Guide said:

I wouldn't buy now but some of the REITs are going to be looking really good in a couple of months. I like O because their number 1 lease is Walgreens who will be looking good through this mess. Still too early to buy.


Why too early?
jamey
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hypeiv said:

Most of you guys probably know this but you should look into the tax situations that can happen with different ETFs before jumping in. If you don't want to worry about it invest in ETFs on your IRA or HSA accounts.

Some ETFs will make you part of a partnership which generates more tax paperwork, some like reits are taxed as ordinary income and the gold ETFs are taxed as collectables.


If its inside the 401K (self managed) it doesnt matter though right, no tax stuff to mess with?
oscar9
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VDIGX
FrontPorchAg
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jamey said:

Mtn_Guide said:

I wouldn't buy now but some of the REITs are going to be looking really good in a couple of months. I like O because their number 1 lease is Walgreens who will be looking good through this mess. Still too early to buy.


Why too early?
I wrote that five weeks ago, and at the time we were 7 days off the S&P lows for the year. There were still better companies at a better discount, and until we start to see a majority of businesses open up we don't know how some of these REITs are going to fair. For instance, I'm pretty confident that Castle will do well but I have little confidence in Simon Property Group or other mall REITs
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Hendrix
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I would focus on industrial reits. not the biggest yields, but industrial will come out of this first and strongest. They're still seeing leasing demand with supply shut down. Maybe multi-family. I'd stay away from office and retail.
Spaceship
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RSP715 said:

I would focus on industrial reits. not the biggest yields, but industrial will come out of this first and strongest. They're still seeing leasing demand with supply shut down. Maybe multi-family. I'd stay away from office and retail.

Great point. I work in commercial RE and our industrial brokers are by far the most optimistic group in the short term.
FrontPorchAg
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RSP715 said:

I would focus on industrial reits. not the biggest yields, but industrial will come out of this first and strongest. They're still seeing leasing demand with supply shut down. Maybe multi-family. I'd stay away from office and retail.
I agree with that for the most part. Which industrials are you looking at?

BTW, since I mentioned it before O reported this week and said that for the month of April, 83% of leases paid the rent. Almost all leases who couldn't pay asked for deferment rather than abatement.

Granted we were only two weeks into the lockdowns at that point. The June report will be the real tell since leasees will have been out for a month.
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Hendrix
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I like DRE. Read their last earnings transcript. They've barely been affected and well positioned for continued e-commerce boom primarily in gateway industrial markets. Strong bts activity. Best in class modern product. Major tenant exposure is amazon target Walmart Clorox et al.
FrontPorchAg
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WFC is cratering down 26% in the last 2 weeks.
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IrishTxAggie
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Mtn_Guide said:

WFC is cratering down 26% in the last 2 weeks.
All the banks are taking it on the chin.
Hendrix
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DRE is at a great entry price right now for what it's worth. 2-3 year money.
FrontPorchAg
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IrishTxAggie said:

Mtn_Guide said:

WFC is cratering down 26% in the last 2 weeks.
All the banks are taking it on the chin.
Yeah, I know this isn't a good environment for them but at some point you have to ask when are they oversold? The Fed isn't going to let Chase and WFC go out of business.
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TriAg2010
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Mtn_Guide said:

IrishTxAggie said:

Mtn_Guide said:

WFC is cratering down 26% in the last 2 weeks.
All the banks are taking it on the chin.
Yeah, I know this isn't a good environment for them but at some point you have to ask when are they oversold? The Fed isn't going to let Chase and WFC go out of business.


If that comes to pass, I don't think common shareholders would be spared (see: GM):
FrontPorchAg
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TriAg2010 said:

Mtn_Guide said:

IrishTxAggie said:

Mtn_Guide said:

WFC is cratering down 26% in the last 2 weeks.
All the banks are taking it on the chin.
Yeah, I know this isn't a good environment for them but at some point you have to ask when are they oversold? The Fed isn't going to let Chase and WFC go out of business.


If that comes to pass, I don't think common shareholders would be spared (see: GM):
You are absolutely right, but there are other things that the Fed could do before a GM style intervention. For instance, they would remove WFC's asset caps.
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BigJim49 AustinNowDallas
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tam2002 said:

Appreciate the input. Got 100k in a CD I'm wanting to spread around on some of these to cash in for a long time
check out preferreds - 6% on most - several prf funds pay 8-10 % ! But keep it secret !
BigJim49AustinnowDallas
JSKolache
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I got AHC divs at appx 21% for q1. Price has rebounded, so that yield is lower now. It is low volume and low cap. so price is volatile, but divs seem to be holding up.
ShotOver
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bmy
richardag
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I use a site called Simply Safe Dividends. Their information on stocks is very good and rating system has been accurate. They have very good filters for keying in on the goals you may have. My annual cost is only ~$400.

Based on their information I will
  • Buy the stock at attractive prices
  • Sell a put at an attractive strike and if it is a border line safe stock buy 2 puts at a lower strike maybe further out( generally this generates some profit. If considered very safe I forego buying the lower strike puts.
  • If the puts I sold are exercised, I wait and sell the stock above the strike price lowering my effective purchase price.

My goal is primarily dividends and lowering my cost per share. I will tolerate paper losses as long as the dividends are considered safe.

This is not a way to make a fortune but an experiment investing in safe dividends.

I have had success with HFC, MAIN, EPD, GIS, D, PPL, and a few others.

The big fail is SKT, will wait to see how the dividend fares or I should cut before exiting.

I am a rank amateur so do your own diligence.
-We understand why children are afraid of darkness ... but why are men afraid of light?
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