OT: Economic Recovery
- Thread starter Jtung230
- Start date
Other than some sort of reverse split, something similar, or an insurance product return of your own capital, I can’t imagine what this is. Maybe the poster can chime in and tell us what the the stock/product is? Also, dividends are not some sort of magical gift; total return is what should be considered. Depending on your personal circumstances and situation, you may or may not want a dividend for tax efficiency purposes.
One of the considerations I hadn't heard before but makes total sense...How is a mother or father of children forced to be home from school going to be able to physically leave to go to work? That's a tough one.
some of these instances, people are asked to take a no show job. The way PPP program works is that employers gets a 25% bonus to pay mortgage, utilities or debt service if they hire back their staff back. That’s why they can offer no show jobs. For these employees it’s 8 weeks vs 26 weeks (ue in NY) and the hassle of refilling. Very tough situation for both sides.
Well that's really the point of the extra money for the next few months, so that people don't go back out into the world looking for work which could spread the disease. We can debate how long this extra payment should go on for, but the idea is to keep people home until we have the testing and hospital capacity to more properly deal with this.
Oh and this is definitively going to be a U shaped recession with a chance of this having exposed enough weaknesses to make it an L shape.
Well it was 50%, and cut to 26% for this quarter.
You have to ask why it is so high? Well the value of the stock is down 81% on the year. And that value, as someone noted above, is not necessarily reflective of their economic performance.
The stock is up about 40% since I bought it, so no matter how it plays out, if they continue to cut dividends going fwd, I'm making money on this one.
Many people dropping hints and you still don't see it . Can you just post the ticker of the ******* stock???
Go buy a some John Deere and some weather tech floor mats. You can also help the farmers out and buy some soy beans.
I'm not a vodka guy, but it's American.
I think I'm going to place some orders for delivery from local NJ craft breweries tonight
DCP.
But I saw people pissing on a stock with that level of yield. If they wanted to know all they had to was ask.
That whole sector is pretty good and while DCP did not report a profit last year, a company like EPD which has less dramatic %'s across the board does have a sound financial foundation.
Beer is certainly an area where it is easy to buy American.
Not sure about the packaging though.
I 'pissed' on the high dividend yield because too many people fall in love with a stock because of its dividend yield. A dividend should be the cherry on top, not the sundae.
DCP is in the natural gas business. Do you know how much Covid has disrupted their business? I don't, but I assume it has. Their revenue declined in 2019. Why? Also, per Yahoo Finance, they have zero cash and $6bn in debt (roughly equal to 10 months of 2019 revenue). That's a lot of debt going into a probable recession.
It could be good for a trade, but you better have a stop-out.
1)I do have a stop in place, and with that there is no way this is not a very good trade for me.
2)When the yield is 26%, that is a pretty big cherry.
(The "pissed on" comment was only a quick refute to the idea that people were hinting about what stock I was talking, don't take it as a dig.)
1)The Quote at the end of my post is missing the ], that's the format issue you are having above.
2)Truthfully I'm very new to this, I did read a little something on mlp's, knew this was an mlp, but really don'tknow much else about them, so your post is helpful, not only for the info you provide, but more importantly to alert me to do more research on them.
3)What I did know was the prices for these MLP's were super low, and they offered very good, to ridiculously good dividend yields, I did spread the money around within the sector, so I put some money with DCP which does look pretty flimsy, but also with some more sound options like EDP, amongst others. Do I expect the 26% to hold up over time? No. In fact, as noted, I've already seen the yield cut from 50% to 26%. But 26% is still crazy high, and even if they were to cut it to 13%, or even 8%, I'm still doing well. Should I be concerned that they just go out of business and I lose my total investment? I'm thinking, probably.:Shocked
2)Truthfully I'm very new to this, I did read a little something on mlp's, knew this was an mlp, but really don'tknow much else about them, so your post is helpful, not only for the info you provide, but more importantly to alert me to do more research on them.
3)What I did know was the prices for these MLP's were super low, and they offered very good, to ridiculously good dividend yields, I did spread the money around within the sector, so I put some money with DCP which does look pretty flimsy, but also with some more sound options like EDP, amongst others. Do I expect the 26% to hold up over time? No. In fact, as noted, I've already seen the yield cut from 50% to 26%. But 26% is still crazy high, and even if they were to cut it to 13%, or even 8%, I'm still doing well. Should I be concerned that they just go out of business and I lose my total investment? I'm thinking, probably.:Shocked
sorry I must have backspaced the bracket causing the run on.
MLPs can be high risk but also high reward so good luck! You did pick this up at a severely depressed price and have had a nice bump so far. I would suggest—for what it’s worth— to broadly diversify so if you want to be in this space fine but don’t have too many eggs in one basket. I would definitely spend some more time researching MLPs in general. Best of luck!!!
Congrats on the good trade. I just want to bring it back to my original comment about separation of equity and fixed income investments. The reason I don’t like to chase dividends is because they are subject to change.
As I've been an investor for all of about 5 weeks, this has been at the core of my investing strategy. Find companies which had previously traded at a much higher price, but because of Covid, have crashed mightily.
So far I've done pretty well, though I have invested in some industries like the airlines which have meandered more then they have increased(I was a little late in getting in so I didn't get the early rebound jump).
The yield consideration came a bit later, but one thing I think about it is, given the scenario, you can't look at yields like you would in normal situations. Typically a 26% yield doesn't even occur, and if it did, if this thread is any indication, it would scare investors off more then it would attract them. In the time of Covid though, it may actually be a great oppurtunity for investors. I guess the thing to do would be to see how these types of stocks or mlp's have performed in past drastic down turns in the market.
Thanks for the info as well as your best of luck wishes. I am doing some research, and I am keeping an eye on it, so hopefully I can help keep the luck on my side.
I look at my stocks which don't provide dividends(or small %) as a bunch of lazy bums. Unless they are jumping in price, they are on thin ice.
And look those yields will come down as the stock price goes up. That's how it works, but getting that money in now, means I will continue to get that high % dividend yield on my initial investment.
Growth stocks don’t pay dividends. What made you decide on buying Amazon? Your stock portfolio should include both. I encourage you to read more on why companies pay dividends. The most important thing is that you are saving and putting your money to work.
https://www.berkshirehathaway.com/letters/2012ltr.pdf
Regarding dividends, some people love them, some people don’t. There are many situations and circumstances that could support either stance. Personally, I look for total return. Above is a shareholder letter from Warren Buffett. It is from back in 2012 but the principles hold. Please see pages 19-21 for his views on dividends. Not everything he says or writes is gospel but there are many who have similar philosophies from both management and shareholder perspectives. You can also google “total return vs dividend” and the pros and cons of dividends, and similar topics. That type of research helps investors know whether seeking dividends or yield is best for them at a particular time and with a particular asset allocation.
Regarding dividends, some people love them, some people don’t. There are many situations and circumstances that could support either stance. Personally, I look for total return. Above is a shareholder letter from Warren Buffett. It is from back in 2012 but the principles hold. Please see pages 19-21 for his views on dividends. Not everything he says or writes is gospel but there are many who have similar philosophies from both management and shareholder perspectives. You can also google “total return vs dividend” and the pros and cons of dividends, and similar topics. That type of research helps investors know whether seeking dividends or yield is best for them at a particular time and with a particular asset allocation.
I saw Amazon as a company doing well in the modern economy, but even moreso in a Covid economy.
As per the growth stocks don't pay dividends. If dividend stocks lost a ton of value for a reason like Covid, they will, at least in the short term, be a growth stock as well as a dividend stock.
I may have a narrow view of this because of the current situation, but this narrow view might be better suited to this particular point in time then a broader long range view. I expect my view will change as the times change.
Side note, and overly contrarian which is not really what I am trying to be here, but I did pick up some Berkshire Hathaway class B, and it has been a dog. Up .9 % in a month. Never mind Delta.
But I will read through as I have tried to learn from Buffet's investing philosophies.
JTUNG is right about saving and putting your money to work. There is a saying: “time in the market is more important than timing the market.” Investing is a life-long learning opportunity. Invest early, often, be well diversified, continue to learn, and watch fees/costs to keep them low. Good for you 05 for taking the initiative.
I’ve held BRKB for more than a decade. Don’t look at performance over a short period of time. That goes for stocks, funds, bonds, commodities, etc. In all probability you will be well served if you take a longer term view. Chasing recent performance works sometimes, other times not at all.
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Again though, is the long term view best suited for the very odd situation we are now in? This is not normal.
I also think we could consider a long term view as a series of shorter term time frames. Is this not why there are mutual fun managers? Mutual funds are clearly long term assets, yet, do they not have managers which work the day to day?
Likewise I could have just rolled with a Berkshire over this past month, and made .9%, or I could have looked through an ocean of opportunities in which stocks, because of a massive sell off, were trading well below value. This latter method has seen my overall portfolio grow 10% this month. As a new investor was I just lucky, or did I jump into a very ripe situation? I have to believe it's the latter. Though I am a little unsure why BRK has been such a laggard. Too invested in airlines perhaps?
As per the letter from Buffet, I might need a bit of clarification, he talks about selling stocks at 125% of value on the open market. Given I bought these stocks on the open market, I don't think the math works in my favor when it is time to sell. Am I right on this?
There is a large and growing school of thought that passive investment is superior to active management. Own the market, so to speak, at very low basis point fees, which make a huge difference over time. Passive generally gives you good diversification within the specific index. Having said that, I do own both active and passive Vanguard funds. Most active fund managers don’t beat their benchmark—and they are pros. I also own some individual equities but I’m not a trader so to speak. Your timing may be good starting to invest for the long term in a down market. It’s probably best not to give or get financial advise on a message board. Good luck to you.
So is NJ.com a trustful opinion? Or someone this board seems to hold a unanimous hatred of?
+1
Mulshine just crushed Murphy's chicken little "leadership". Well done! Once NJ.com goes under, I will check out Mulshine's other venues for his columns.
Mulshine is the only conservative that NJ.com employees, he also calls it down the middle, he's always been a breath of fresh air.
From the article, exemplifying the lack of thoughtfulness put into the close the parks decision. How does someone biking alone violate the social distancing requirements? Getting killed by a car is a better outcome than the possibility of catching Covid-19 while biking in park? Murphy's Law!
a guy from Middlesex County who emailed me to say, “While cutting thru Johnson Park in Piscataway Monday, I was chased out by a park ranger who told me I had to bike on River Road, which is a busy road with no bike lane. I took a couple of pictures to make my point….”
The pictures made the point in graphic detail. River Road is a four-lane speedway with no shoulder. It is often used by drivers seeking a short cut to and from Interstate 287.
Murphy’s stated reason for shutting down state and county parks is, the Middlesex County website tells us, to “help us limit the spread of covid-19.” The website doesn’t say how forcing bicyclists to play bumper cars with SUVs serves that goal, however.
“My local parks are closed but the streets are crowded with people, bikes, cars and dogs. In the park, only people would be allowed. Much safer than the street.”
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