Buying opportunity?
dividend stocks
- Thread starter EO 11110
- Start date
picked up a few shares of STAG in the wife's ira today
It’s now officially in the dividend aristocrat club (25 years of dividend increase) currently yielding 5.5%.
I may add some but I’d like to get in below $115.
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I believe it is going to split into two companies later this year. It would be interesting to see if there was a way to value its quantum computing assets as well as trying to evaluate the two pieces after the breakup.
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added to VTRS today (again). if it pops up i'll sell the extra shares. unless they finally announce the 5 percent dividend that the 'experts' are predicting
from what i read it is expected to be high dividend slow grower with a low valuation. that fits in well with my dividend income holdings - safe and boring
that's a good price. i bought some at 113 months ago. it's doing the job - not much cap appreciation, but forking out the fat dividends
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Don't remember where I read it but the article said Mush would leave Tesla. Writes said to follow Musk to his new venture.
I found that interesting.
Buffet just bribes presidents who sign EO's that give him a monopoly old school..
I found that interesting.
Buffet just bribes presidents who sign EO's that give him a monopoly old school..
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I bought a bit of SKT (Tangers Outlet) Reit earlier this year because the price just got so low due to the pandemic and it paid a nice dividend.
Well I'll be damned if I didn't login EOD and see the SOB shot up. It looks like the hoodlum day traders saw how short it was and decided to create a run on it. Now to question of whether to hold it til after the ex-div date on thursday or sell it now as a 3xbagger.
Well I'll be damned if I didn't login EOD and see the SOB shot up. It looks like the hoodlum day traders saw how short it was and decided to create a run on it. Now to question of whether to hold it til after the ex-div date on thursday or sell it now as a 3xbagger.
i own it too. after seeing the gamestop lunacy, i'm holding tight
if it breaks 25 i may start scaling out of it
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thats what I was thinking, around 25. It could be a fun ride; but its not like its my favorite holding and I havent been a "let it ride" guy in a long ass time.
the upside seems a lot bigger than the downside in the near term. the thing started getting spunky a couple of weeks ago
i read that 50 percent of shares are short. gamestop was something like 100 percent. some hedge funds are getting crushed
SEC is going to have to do something - the wrong people are losing money
i find it strange - the gme story is some redditt robin hood fags got together and pulled it off. i have my doubts about that yarn. they have that kind of firepower? lol
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Guys article stinks but read the comments. These guys make some great points. Many like this and some even better.
"did some redditt research:
mellenials are pissed. they cant buy a house, because the boomers drove the prices up and wages didnt follow. they wont ever retire, ss and medicare are bankrupt. saving 10-20K is nothing--its a paltry sum in these days--not enuf for down payment on a condo. so.....they will buy they whole float (69 mil) of any stock with more shorts than longs (or a very high short %) and force the shorts to buy from them at their price (with their paltry $1-20K collective savings--chump change in this world until collectively used---genius, actually.). In march...when the market crashed....the redditt crowd mocked the boomers for having the fed save their asses. "boomers cant handle a bear market' --stocks never go down? "we'll teach you stocks never go down". the stock the millenials target will never go down (gamestop) until they get hedge funds to pay their price to unwind their shorts. its a war---millenials versus the establishment/boomers. $1000/share price target for starters. The millenials feel (correctly) they have nothing to lose, because the boomers have fooked valuations and rigged this market for decades at the millenials expense. Next stock on the queue for short crushing--->BB???"
correct me where im wrong---this is the way i understand it. you need 5-10x cash reserves to short this potato and wait it out until capitulation.
https://www.zerohedge.com/markets/g...-dips-after-report-melvin-citron-cover-shorts
"did some redditt research:
mellenials are pissed. they cant buy a house, because the boomers drove the prices up and wages didnt follow. they wont ever retire, ss and medicare are bankrupt. saving 10-20K is nothing--its a paltry sum in these days--not enuf for down payment on a condo. so.....they will buy they whole float (69 mil) of any stock with more shorts than longs (or a very high short %) and force the shorts to buy from them at their price (with their paltry $1-20K collective savings--chump change in this world until collectively used---genius, actually.). In march...when the market crashed....the redditt crowd mocked the boomers for having the fed save their asses. "boomers cant handle a bear market' --stocks never go down? "we'll teach you stocks never go down". the stock the millenials target will never go down (gamestop) until they get hedge funds to pay their price to unwind their shorts. its a war---millenials versus the establishment/boomers. $1000/share price target for starters. The millenials feel (correctly) they have nothing to lose, because the boomers have fooked valuations and rigged this market for decades at the millenials expense. Next stock on the queue for short crushing--->BB???"
correct me where im wrong---this is the way i understand it. you need 5-10x cash reserves to short this potato and wait it out until capitulation.
https://www.zerohedge.com/markets/g...-dips-after-report-melvin-citron-cover-shorts
crazy day for my new trading game -- got longer VTRS and STAG early
took beating
averaged down, buying more of both
bought SH (short etf) to stop the bleeding
went long ASO academy sports on a nice dip
sold out of VTRS, SH, ASO in last half hour -- made up the losses on VTRS. closed with a tiny gain on those three blended together.
still have to deal with STAG tomorrow - and it's ex-div date is this week
fun times
took beating
averaged down, buying more of both
bought SH (short etf) to stop the bleeding
went long ASO academy sports on a nice dip
sold out of VTRS, SH, ASO in last half hour -- made up the losses on VTRS. closed with a tiny gain on those three blended together.
still have to deal with STAG tomorrow - and it's ex-div date is this week
fun times
Took today's action to be a buying opportunity. Added some MRK when it dipped to 77. Starting to eye up adding more VZ as it dips into the low 50s...
BCE is behaving like VZ. might add to it on further weakness. Dividend is over 6 percent
Also watching MO. It's been easing down. Read the earnings call transcript, sounded solid, starting a 2 billion dollar share repurchase program and continuing to pay that monster dividend. Covid mania didnt hurt their sales at all.
FMS is another one. largest dialysis player in the world. dividend is around 2 percent. low p/e compared to market. dialysis is growing -- but govs are a problem, as they all meddle in the market
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A lot of moving parts there. JUUL, Cronos, their IQOS initiatives. That is another one that I really don't know what to do with. My basis on that is just under 39...so if it does dip down to that level, I might be tempted. But not until.
indeed they do.
without juul i wouldnt consider holding the thing long term. the kiddos are queer for vaping and juul is the big dog in the market
read a lot of pumping of 'dividend growth' stocks. growing companies that pay low, but growing dividends
looks to me like the sp500 is the ticket for that game. just have to buy it right
yearly growth of the dividends of the index
https://www.multpl.com/s-p-500-dividend-growth/table/by-year
Date Value Dec 31, 2020 0.07% Dec 31, 2019 8.36% Dec 31, 2018 9.84% Dec 31, 2017 7.07% Dec 31, 2016 5.33% Dec 31, 2015 10.00% Dec 31, 2014 12.72% Dec 31, 2013 11.99% Dec 31, 2012 18.25% Dec 31, 2011 16.26% Dec 31, 2010 1.45% Dec 31, 2009 -21.07% Dec 31, 2008 2.36% Dec 31, 2007 11.45% Dec 31, 2006 12.01% Dec 31, 2005 14.27% Dec 31, 2004 11.83% Dec 31, 2003 8.16% Dec 31, 2002 2.12% Dec 31, 2001 -3.26% Dec 31, 2000 -2.52% Dec 31, 1999 3.07% Dec 31, 1998 4.50% Dec 31, 1997 4.01% Dec 31, 1996 8.06% Dec 31, 1995 4.69% Dec 31, 1994 4.71% Dec 31, 1993 1.55% Dec 31, 1992 1.49% Dec 31, 1991 0.97% Dec 31, 1990 9.33% Dec 31, 1989 13.38%
looks to me like the sp500 is the ticket for that game. just have to buy it right
yearly growth of the dividends of the index
https://www.multpl.com/s-p-500-dividend-growth/table/by-year
Date Value Dec 31, 2020 0.07% Dec 31, 2019 8.36% Dec 31, 2018 9.84% Dec 31, 2017 7.07% Dec 31, 2016 5.33% Dec 31, 2015 10.00% Dec 31, 2014 12.72% Dec 31, 2013 11.99% Dec 31, 2012 18.25% Dec 31, 2011 16.26% Dec 31, 2010 1.45% Dec 31, 2009 -21.07% Dec 31, 2008 2.36% Dec 31, 2007 11.45% Dec 31, 2006 12.01% Dec 31, 2005 14.27% Dec 31, 2004 11.83% Dec 31, 2003 8.16% Dec 31, 2002 2.12% Dec 31, 2001 -3.26% Dec 31, 2000 -2.52% Dec 31, 1999 3.07% Dec 31, 1998 4.50% Dec 31, 1997 4.01% Dec 31, 1996 8.06% Dec 31, 1995 4.69% Dec 31, 1994 4.71% Dec 31, 1993 1.55% Dec 31, 1992 1.49% Dec 31, 1991 0.97% Dec 31, 1990 9.33% Dec 31, 1989 13.38%
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One of my favorite holdings: KNOP
https://seekingalpha.com/symbol/KNOP
They just passed the last ex-div date; but anytime it gets around $15 and I have some money to put into the market; I add a bit more. Currently pays a well-covered 13% quarterly dividend. They havent grown the dividend in a long while; but its already generous. Also its not a k-1 as I know that bothers some.
https://seekingalpha.com/symbol/KNOP
They just passed the last ex-div date; but anytime it gets around $15 and I have some money to put into the market; I add a bit more. Currently pays a well-covered 13% quarterly dividend. They havent grown the dividend in a long while; but its already generous. Also its not a k-1 as I know that bothers some.
Always nice to get a little raise:
Feb. 02, 2021 11:50 AM ET Otter Tail Corporation (OTTR) By: Akanksha Bakshi, SA News Editor4 Comments
Feb. 02, 2021 11:50 AM ET Otter Tail Corporation (OTTR) By: Akanksha Bakshi, SA News Editor4 Comments
- Otter Tail (NASDAQ:OTTR) declares $0.39/share quarterly dividend, 5.4% increase from prior dividend of $0.37.
- Forward yield 3.84%
- Payable March 10; for shareholders of record Feb. 12; ex-div Feb. 11.
added to mplx mlp after reading latest earnings report. yield is 11ish percent. distribution coverage 1.6 times
Yet another ATT vs Verizon comparison https://seekingalpha.com/article/4402726-t-vs-verizon-stock-which-should-you-buy-sell
T vs VZ, 7.29% vs 4.58%, $2.08 vs $2.51, $28.64 vs $55.18
T vs VZ, 7.29% vs 4.58%, $2.08 vs $2.51, $28.64 vs $55.18
sail foam outranks everything else for the m-asses. that bill WILL be paid by the millions of phone addicts
holding T, VZ, BCE, TU in that sector. i dont expect any cap appreciation - consider them high yield money market type investments
"sail foam" ?
Cell phone maybe? Agreed, then...everyone is going to pay their cell phone bill because they are indeed all addicted.
VZ is the only one I have, but it is one of my largest holdings. Agree...pure dividend play. Capital appreciation will be low and slow at best. But the dividends from this stock (among others) are going be buying me groceries all through my retirement.
Bought some more T last week. Can't beat the dividend.
looks like you got a pop on the news that buffett is buying VZ shares
i bought some FNF - largest title company. yield only 3.7 percent. if/when anything starts threatening the real estate boom i'll probably sell some/all of it.
they are going to announce big earnings in about a week, worried that it's already priced in. their competitors have already announced blow out numbers
another sector blowing out earnings is agriculture - wondering if the freeze is going to kill that? i've cut back on NTR and CF, harvesting some gains and added some of those proceeds to WPC and GILD
I sold some TXT yesterday. It dropped 2 bucks since. I'll miss that fantastic dividend though, $0.08 /yr. <-- sarcasm
this article is an eye opener
sadly, this is just a snapshot of today. biden/pelosi and the rest can kill it if they choose to
https://www.fool.com/taxes/2021/02/18/claim-over-80000-tax-free-income-dividend-stocks/
How to Claim Over $80,000 in Tax-Free Income by Investing in Dividend Stocks
Here's another incentive to purchase more dividend-paying stocks this year.
Charlene Rhinehart, CPA
(TMFDividendQueen)
Feb 18, 2021 at 8:39AM
Author Bio
Follow @CharRhinehart
For stock investors, dividend-paying equities offer an extra stream of income that you can enjoy for years. But what can be even better is how that dividend income will (or won't) impact your tax bill.
When it comes to the IRS, all income is not created equal. So if the idea of earning more money and getting taxed less on it -- or even not taxed at all -- appeals to you, here's a rundown of the rules around dividends that can make that possible.
IMAGE SOURCE: GETTY IMAGES.
Unlocking the benefits of dividends
Typically, investors make most of their money in the stock market by selling shares at a profit. But by purchasing shares of dividend-paying stocks, you can get rewarded regularly for holding onto those shares.
Companies pay their investors dividends based on the number of shares they own. If, for example, a company distributes an annual dividend of $2 per share and you own 1,000 shares, you'll qualify for $2,000 in dividends as long as you've met the holding period requirements.
Typically, dividends are paid quarterly, though a small minority of companies distribute them on other schedules. Each time the board of directors declares a dividend, you will receive deposits in your account. And if a company increases its dividend payout -- which some have a habit of doing at least once a year -- you'll get those "pay raises" without having to do anything extra at all.
Taking advantage of the 0% tax bracket
As every adult American rapidly learns, income from ordinary employment is taxed in brackets. The more you earn, the higher the marginal rate will be on the share of your income that falls into your top bracket.
The same is true for certain types of income earned from the stock market, but the brackets involved are different: Most money made via investing will fall within the brackets of 0%, 15%, or 20%. While most people's investment-related income will be taxed at 15% due to their non-investment income, it isn't impossible for yours to fall into the 0% tax bracket -- especially if the majority of your income is derived from dividends.
Here's the key: You can only get tax-free treatment on as much dividend income as leaves you with total taxable income -- including those dividends -- of less than $40,401 as a single filer or less than $80,801 as a married couple filing jointly. Also, as you'll see below, your dividends must be considered qualified. But first, take a look at the 2021 qualified dividends tax table to see the full list of income levels for various tax rates.
2021 qualified dividends
For Single Filers With Taxable Income of...
For Married Joint Filers With Taxable Income of...
For Married Couples Filing Separately With Taxable Income of...
For Heads of Households With Taxable Income of...
...This Is the 2021 Qualified Dividends Tax Rate
$0 to $40,400
$0 to $80,800
$0 to $40,400
$0 to $54,100
0%
$40,401 to $445,850
$80,801 to $501,600
$40,401 to $250,800
$54,101 to $473,750
15%
Over $445,850
Over $501,600
Over $250,800
Over $473,750
20%
DATA SOURCE: IRS.
Earning tax-free qualified dividends
Not all dividends qualify for this favorable treatment. Some types of companies, such as REITs and MLPs, force shareholders to pay taxes on their distributions at your ordinary marginal rates, which could be as high as 37%.
However, you could also fill your portfolio up with stocks that pay qualified dividends, granting you access to the 0%, 15%, and 20% tax brackets. For you to take advantage of those rates, both you and the company have to follow the rules.
First, the dividend must be paid by a U.S. corporation or qualifying foreign entity. Next, the dividend must actually qualify as a dividend as defined by the IRS, and must not be included on the list of exemptions for qualified dividend tax treatment. For instance, you can't receive an annual distribution from a credit union or employee stock option and expect to receive qualified dividend treatment. Third, you must have held the stock paying the dividend for more than 60 days during the 121-day holding period that begins 60 days before the ex-dividend date.
Make the most of every dividend
If you haven't started your dividend investing journey yet, the possibilities of tax-free or low-tax income may just be the extra inducement you need to get you on your way. If you're already on a mission to build a robust dividend portfolio, you can use the qualified dividends and long-term capital gains rates to maximize your opportunities to earn more and pay less in taxes.
sadly, this is just a snapshot of today. biden/pelosi and the rest can kill it if they choose to
https://www.fool.com/taxes/2021/02/18/claim-over-80000-tax-free-income-dividend-stocks/
How to Claim Over $80,000 in Tax-Free Income by Investing in Dividend Stocks
Here's another incentive to purchase more dividend-paying stocks this year.
Charlene Rhinehart, CPA
(TMFDividendQueen)
Feb 18, 2021 at 8:39AM
Author Bio
Follow @CharRhinehart
For stock investors, dividend-paying equities offer an extra stream of income that you can enjoy for years. But what can be even better is how that dividend income will (or won't) impact your tax bill.
When it comes to the IRS, all income is not created equal. So if the idea of earning more money and getting taxed less on it -- or even not taxed at all -- appeals to you, here's a rundown of the rules around dividends that can make that possible.
IMAGE SOURCE: GETTY IMAGES.
Unlocking the benefits of dividends
Typically, investors make most of their money in the stock market by selling shares at a profit. But by purchasing shares of dividend-paying stocks, you can get rewarded regularly for holding onto those shares.
Companies pay their investors dividends based on the number of shares they own. If, for example, a company distributes an annual dividend of $2 per share and you own 1,000 shares, you'll qualify for $2,000 in dividends as long as you've met the holding period requirements.
Typically, dividends are paid quarterly, though a small minority of companies distribute them on other schedules. Each time the board of directors declares a dividend, you will receive deposits in your account. And if a company increases its dividend payout -- which some have a habit of doing at least once a year -- you'll get those "pay raises" without having to do anything extra at all.
Taking advantage of the 0% tax bracket
As every adult American rapidly learns, income from ordinary employment is taxed in brackets. The more you earn, the higher the marginal rate will be on the share of your income that falls into your top bracket.
The same is true for certain types of income earned from the stock market, but the brackets involved are different: Most money made via investing will fall within the brackets of 0%, 15%, or 20%. While most people's investment-related income will be taxed at 15% due to their non-investment income, it isn't impossible for yours to fall into the 0% tax bracket -- especially if the majority of your income is derived from dividends.
Here's the key: You can only get tax-free treatment on as much dividend income as leaves you with total taxable income -- including those dividends -- of less than $40,401 as a single filer or less than $80,801 as a married couple filing jointly. Also, as you'll see below, your dividends must be considered qualified. But first, take a look at the 2021 qualified dividends tax table to see the full list of income levels for various tax rates.
2021 qualified dividends
For Single Filers With Taxable Income of...
For Married Joint Filers With Taxable Income of...
For Married Couples Filing Separately With Taxable Income of...
For Heads of Households With Taxable Income of...
...This Is the 2021 Qualified Dividends Tax Rate
$0 to $40,400
$0 to $80,800
$0 to $40,400
$0 to $54,100
0%
$40,401 to $445,850
$80,801 to $501,600
$40,401 to $250,800
$54,101 to $473,750
15%
Over $445,850
Over $501,600
Over $250,800
Over $473,750
20%
DATA SOURCE: IRS.
Earning tax-free qualified dividends
Not all dividends qualify for this favorable treatment. Some types of companies, such as REITs and MLPs, force shareholders to pay taxes on their distributions at your ordinary marginal rates, which could be as high as 37%.
However, you could also fill your portfolio up with stocks that pay qualified dividends, granting you access to the 0%, 15%, and 20% tax brackets. For you to take advantage of those rates, both you and the company have to follow the rules.
First, the dividend must be paid by a U.S. corporation or qualifying foreign entity. Next, the dividend must actually qualify as a dividend as defined by the IRS, and must not be included on the list of exemptions for qualified dividend tax treatment. For instance, you can't receive an annual distribution from a credit union or employee stock option and expect to receive qualified dividend treatment. Third, you must have held the stock paying the dividend for more than 60 days during the 121-day holding period that begins 60 days before the ex-dividend date.
Make the most of every dividend
If you haven't started your dividend investing journey yet, the possibilities of tax-free or low-tax income may just be the extra inducement you need to get you on your way. If you're already on a mission to build a robust dividend portfolio, you can use the qualified dividends and long-term capital gains rates to maximize your opportunities to earn more and pay less in taxes.
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IF it's not taxed by your state. Oregon gets 9% in most cases.
tx uses sky high real estate taxes instead
did oregoners get to deduct, dollar for dollar, the state income tax paid from the federal income tax owed? they call it SALT, i think
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In Oregon, the federal income tax paid can be deducted from taxable income up to a limit of $6800 for married filing jointly. SALT is state and local taxes. State and local taxes are not deductible for state income tax purposes unless they were paid to a different state. Property taxes are deductible up to $10k limit. Standard deduction is $4545 for married filing jointly. Social security is not taxed, however the stimulus payments are.
I think a reasonable general approximation for married filing jointly would be to take income minus social security, deduct $10k, and send 9% of what's left to Oregon. I don't know how high sky high is, but the Oregon property taxes are pretty steep. The big difference is no sales tax.
I think a reasonable general approximation for married filing jointly would be to take income minus social security, deduct $10k, and send 9% of what's left to Oregon. I don't know how high sky high is, but the Oregon property taxes are pretty steep. The big difference is no sales tax.
sky high is roughly 3% of property value tx residents pay to city/county/skoolz
300,000 home = 9k per year. moderate discount if you live in the property via the homestead exemption - pay approx 5-6k per year with this
and we have high sales tax on top of that
300,000 home = 9k per year. moderate discount if you live in the property via the homestead exemption - pay approx 5-6k per year with this
and we have high sales tax on top of that
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That sounds pretty high. It's hard to say what rate we pay in Oregon because there's the real market value and assessed value that sometimes don't look very well coordinated. I can just say I pay about $5k a year for a fairly fancy place not in a big metro area. Around Portland, a pretty typical/average place can run 5K. Have to support those antifa subsidies.
money markets still paying zero ish
gov bonds getting interesting for the 'cash' part of the mix?
30 yr at 2.18
10 yr at 1.39
20 yr at 1.96 (at my broker)
buy for current income, then sell at profit when rates dive again? i'm eyeballing that 20 year
gov bonds getting interesting for the 'cash' part of the mix?
30 yr at 2.18
10 yr at 1.39
20 yr at 1.96 (at my broker)
buy for current income, then sell at profit when rates dive again? i'm eyeballing that 20 year
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Go for the 6 month t-bill at 0.03%. On $10,000 you'll earn 3 bucks a year!
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Investors Business Daily was hyping on Vale stock the other day. A south American Iron ore miner with a 6.5 + - yield. Be sure to DYOD on this one as commodity stocks are seemingly in vogue at the moment anticipating a post covid manufacturing boom that may or may not occur. Additional risk is the geographic location and the biggest risk of all is I own some and my stocks tend to always go down.
IBD Stock Analysis
Composite Rating
99/99
Industry Group Ranking
3/197
Emerging Pattern
Cup with Handle
The gains for the company, one of the biggest miners of iron ore, come after commodity prices rebounded as the global economy began to reopen, helped by infrastructure spending in China, along with curbed supply elsewhere.
However two disasters at mines it oversaw in Brazil have damaged its reputation, and raised concerns about its safety protocols.
Vale Stock Sets Up
Vale stock, which fell 2.1% to close at 17.50 in the stock market today, is in a cup-with-handle base with an 17.78 buy point.
The stock's relative strength line is approaching its recent high from January, when it reached levels not seen in two years. The line has dipped since but is rebounding again.
Vale stock has a best-possible 99 Composite Rating. Its EPS Rating, a gauge of profit growth, is 73.
https://www.investors.com/research/...k-sets-up-new-buy-point-as-commodities-surge/
IBD Stock Analysis
- Vale stock is approaching an 17,78 buy point.
- Shares have a best-possible 99 Composite Rating.
- The relative strength line is approaching recent highs.
Composite Rating
99/99
Industry Group Ranking
3/197
Emerging Pattern
Cup with Handle
The gains for the company, one of the biggest miners of iron ore, come after commodity prices rebounded as the global economy began to reopen, helped by infrastructure spending in China, along with curbed supply elsewhere.
However two disasters at mines it oversaw in Brazil have damaged its reputation, and raised concerns about its safety protocols.
Vale Stock Sets Up
Vale stock, which fell 2.1% to close at 17.50 in the stock market today, is in a cup-with-handle base with an 17.78 buy point.
The stock's relative strength line is approaching its recent high from January, when it reached levels not seen in two years. The line has dipped since but is rebounding again.
Vale stock has a best-possible 99 Composite Rating. Its EPS Rating, a gauge of profit growth, is 73.
https://www.investors.com/research/...k-sets-up-new-buy-point-as-commodities-surge/
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Here is a pot stock that is pretty interesting and Motley Fools blah on it. It has had phenomenal dividend growth and to me their business model makes sense. DYOD because most of my stock pics don't do very well.
Innovative Industrial Properties offers growth and a dividend
Analysts weren't thrilled with Innovative Industrial Properties' fourth-quarter report because it came in below expectations, even though the company nearly doubled every positive metric over the prior year.
So much is expected of IIP that it is finding itself a hard act to follow. That's a good thing, because it gives investors a chance to buy in on a booming company at a reasonable price. The stock is up 123% over the past 12 months, but it's down more than 18% over the past month.
IIP is a Real Estate Investment Trust (REIT) that specializes in leasing space to cannabis companies. The company generally buys a medical marijuana company's property and then leases it back, giving the tenant much-needed capital that is hard to come by because of federal laws that complicate banking operations regarding cannabis companies.
IIP's leases are long-term (10 or 20 years) absolute-net agreements, meaning the tenant bears all the costs for the facilities' maintenance. In the fourth quarter the company said it collected 100% of its contracted rent, and it has not had to offer rent deferrals since this past July.
In 2020 the company reported $116.9 million in revenue, net income of $64.4 million, and adjusted funds from operations (AFFO) of $97.8 million, year-over-year improvements of 162%, 191% and 180%, respectively.
On top of that, IIP has a great dividend growth record. It raised its quarterly dividend 6% in December to $1.24 a share, giving it a yield of 2.8% at its current price. The company has raised its dividend nine times since its IPO in 2016.
IIPR DATA BY YCHARTS
Innovative Industrial Properties offers growth and a dividend
Analysts weren't thrilled with Innovative Industrial Properties' fourth-quarter report because it came in below expectations, even though the company nearly doubled every positive metric over the prior year.
So much is expected of IIP that it is finding itself a hard act to follow. That's a good thing, because it gives investors a chance to buy in on a booming company at a reasonable price. The stock is up 123% over the past 12 months, but it's down more than 18% over the past month.
IIP is a Real Estate Investment Trust (REIT) that specializes in leasing space to cannabis companies. The company generally buys a medical marijuana company's property and then leases it back, giving the tenant much-needed capital that is hard to come by because of federal laws that complicate banking operations regarding cannabis companies.
IIP's leases are long-term (10 or 20 years) absolute-net agreements, meaning the tenant bears all the costs for the facilities' maintenance. In the fourth quarter the company said it collected 100% of its contracted rent, and it has not had to offer rent deferrals since this past July.
In 2020 the company reported $116.9 million in revenue, net income of $64.4 million, and adjusted funds from operations (AFFO) of $97.8 million, year-over-year improvements of 162%, 191% and 180%, respectively.
On top of that, IIP has a great dividend growth record. It raised its quarterly dividend 6% in December to $1.24 a share, giving it a yield of 2.8% at its current price. The company has raised its dividend nine times since its IPO in 2016.
IIPR DATA BY YCHARTS
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One "option" for the less risk averse is to sell naked put contracts. While this used to be only a moderately profitable concept, the collapse of fees on contracts and very low margin rates at the better do-it-yourself brokers makes this geeky option more appealing. The potential returns are extremely high and risk can be managed with a great deal of granularity by carefully selecting strike/time premiums.
Another caveat is that the overpriced equity market is going to, and is in the process of...shifting away from historically expensive equities to a more value centered model(IOW sanity). If/when commodities and more specifically commodity money and the associated stocks again gain widespread favor, the assets underlying specific puts sold into a market hungry for them could be, themselves very attractive.
Here's a sample of a naked put sold on Endeavour silver(EXK), currently trading at 5.68.
The options here are limited as there are few offer strikes(asks) available on this cheap stock, but the best option imo features the Apr16'21 put with a strike of 5. The ROI is actually a bit lower than this, depending on your fee structure paid to sell the new put, but as I said those fees are very low at many of the better brokers these days. Interactive brokers is pictured here with a fee .65 / contract it's very reasonable.
For those that don't trade options or write contracts, be not afraid of the limited upside and near unlimited downside. Selling a naked put is a neutral to bullish action. Here the "doomsday" scenario associated with the max loss on this high IV equity is that the buyer of the put forces you to pay 500 bucks in exchange for 100 shares of endeavor silver. ...not exactly a horrible fate, and since you've already collected $24.35(25 - 0.65 fee) the final cost of those shares is 475.65 *IF* the share price of EXK drops to 5 or less within 27 days. Not a bad deal at all frankly. One can do this with multiple contracts or underlying assets simultaneously over and over during a year to stack outsized gains with very tightly controlled risk.
This was calculated with a 1% margin rate.
Note: This strategy is sensitive to price paid, so returns will be much lower for those lacking an abundance of patience. I like to target ask price less a penny, though some naked puts can take some while to execute in illiquid underlying assets.
Another caveat is that the overpriced equity market is going to, and is in the process of...shifting away from historically expensive equities to a more value centered model(IOW sanity). If/when commodities and more specifically commodity money and the associated stocks again gain widespread favor, the assets underlying specific puts sold into a market hungry for them could be, themselves very attractive.
Here's a sample of a naked put sold on Endeavour silver(EXK), currently trading at 5.68.
The options here are limited as there are few offer strikes(asks) available on this cheap stock, but the best option imo features the Apr16'21 put with a strike of 5. The ROI is actually a bit lower than this, depending on your fee structure paid to sell the new put, but as I said those fees are very low at many of the better brokers these days. Interactive brokers is pictured here with a fee .65 / contract it's very reasonable.
For those that don't trade options or write contracts, be not afraid of the limited upside and near unlimited downside. Selling a naked put is a neutral to bullish action. Here the "doomsday" scenario associated with the max loss on this high IV equity is that the buyer of the put forces you to pay 500 bucks in exchange for 100 shares of endeavor silver. ...not exactly a horrible fate, and since you've already collected $24.35(25 - 0.65 fee) the final cost of those shares is 475.65 *IF* the share price of EXK drops to 5 or less within 27 days. Not a bad deal at all frankly. One can do this with multiple contracts or underlying assets simultaneously over and over during a year to stack outsized gains with very tightly controlled risk.
This was calculated with a 1% margin rate.
Note: This strategy is sensitive to price paid, so returns will be much lower for those lacking an abundance of patience. I like to target ask price less a penny, though some naked puts can take some while to execute in illiquid underlying assets.
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