• "Spreading the ideas of freedom loving people on matters regarding metals, finance, politics, government and many other topics"

dividend stocks

EO 11110

CENSORSHIP KILLS
Mother Lode
Site Supporter ++
Joined
Jul 31, 2010
Messages
19,230
Reaction score
19,249
Location
clown world
AT&T must have some of the worst management known to man-kind. Especially Stankey... pun intended. Cutting the dividend by 50% and I think they will do well to keep it at that level.


https://finance.yahoo.com/m/f035f8ba-39fe-3e5d-b087-ee44ba65fc80/at-t’s-dividend-payout-stands.html
agree about management - impressive ability to screw up as part of an oligopoly

assuming the share price will be cut too - if they spin off the newco as a special dividend of sorts

hoping the stripped down T and newco will still be yielding 4 or 5 percent combined. if not, i'm dumping both of them
 

Uglytruth

Midas Member
Midas Member
Sr Site Supporter
Joined
Apr 6, 2011
Messages
15,096
Reaction score
32,590
Last edited:

Jarrod32

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Aug 7, 2012
Messages
372
Reaction score
818
Location
South Central Nebraska
agree about management - impressive ability to screw up as part of an oligopoly

assuming the share price will be cut too - if they spin off the newco as a special dividend of sorts

hoping the stripped down T and newco will still be yielding 4 or 5 percent combined. if not, i'm dumping both of them

Yeah, it looks like T shareholders will own somewhere around 70% of the new company. So T shareholders will get some spinoff shares of the new company. But some of the discussion I was hearing today is that the differences in the two businesses are a big part of the reason the combination didn't work. Same with Verizon and the Yahoo/AOL combination. T and VZ tend to be value/dividend stocks, while the media divisions fit more into the growth sector more akin to Netflix; something with a higher valuation and minimal dividend. Big reason the mergers didn't work for either. So I wouldn't expect much in dividends from the new company. The Time Warner division did generate a lot of cash flow, though, and because that is now lost it does sound like the T dividend is going to be cut significantly.
 

MrLucky

Gold Member
Gold Chaser
Silver Miner
Sr Site Supporter
Joined
Apr 27, 2011
Messages
2,125
Reaction score
2,733
Location
Really deep down the rabbit hole
If the spinoff is classified as a distribution, the tax implication is different than if it was a dividend. And the reduced dividend may be a blessing in disguise.
 

Uglytruth

Midas Member
Midas Member
Sr Site Supporter
Joined
Apr 6, 2011
Messages
15,096
Reaction score
32,590
Berkshire Dumps Wells, Exits Synchrony, Sells Half Of Chevron, Adds New Stake In Aon: Full 13F Summary



While Berkshire's portfolio made headline news a few weeks ago when the company held its annual report, moments ago Berkshire Hathaway filed its Q1 13-F which provided a more detailed glimpse into its holdings as of March 31, 2021.



It showed two exits (Synchrony Financial and Suncor), one new position, a 4.1 million stake worth just under $1 billion in British insurer Aon Plc that is working now to close a deal with rival Willis Towers Watson, and perhaps most notably the nearly complete liquidation of Berkshire's remaining position in Wells Fargo.



As a reminder, in addition to dumping its entire stake in JPMorgan and M&T Bank, last quarter Berkshire also continued its gradual selling of its formerly favorite US bank, Wells Fargo, selling 59% of its holdings in Q4. Fast forward three months when there was no more Mr nice guy and as of March 31, Berkshire's position in Wells had collapsed by 99%, leaving Buffett with a tiny stub of just 675,054 WFC shares worth $26.4 million.



Elsewhere, Berkshire - whose long portfolio as of March 31 had a value of just over $270 billion - added to its holdings of Kroger, boosting that stake up 52%, and also bought more Verizon (+8%), RH (+1%) and also Marsh McLennan, adding 24% to its stake.



At the same time, Berkshire also cut quite a few holdings - 11 in total shown in orange below - and in addition to the near liquidation of its Wells holdings, what we found more interesting is that after revealing a 48.5 million stake in Chevron last quarter, worth just over $4 billion, Berkshire has trimmed this in half, and as of March 31 it held just 23.7 million shares, worth $2.5 billion. Is Buffett's infatuation with E&P over, or is the massive fund preparing to reallocate to the company which many had said it would buy all along, Exxon.



The full 13F summary is below (SEC link here).



https://www.zerohedge.com/markets/berkshire-dumps-wells-exits-synchrony-sells-half-chevron-adds-new-stake-aon-full-13f


1621300261648.png
 

EO 11110

CENSORSHIP KILLS
Mother Lode
Site Supporter ++
Joined
Jul 31, 2010
Messages
19,230
Reaction score
19,249
Location
clown world
read that the new T dividend will be around 1.18 per year. at today's stock price that's about 4 percent yield.

if newco results in a special dividend of newco shares, wonder how much that will shave off of T share price? yield could be significantly higher than 4 percent after that cut in T share price
 

MrLucky

Gold Member
Gold Chaser
Silver Miner
Sr Site Supporter
Joined
Apr 27, 2011
Messages
2,125
Reaction score
2,733
Location
Really deep down the rabbit hole
Just because Berkshire is buying something doesn't make it a good investment for you. I remember when Buffet bought GE. GE needed money and yeah he bought millions of shares. But he got them at a special price! He paid $22/sh when the current price was $28/sh. So beware if Buffet is buying something. And watch out when he sells something. In the case of GE he dumped 10.5 million shares in 1 quarter.
 
Last edited:

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,661
Reaction score
27,117
Location
OTR
They were just saying the T dividend was safe and that they were moving forward with HBO. Trollol

I hope someone sues them. They really did mislead their investors.

but I will take a good look at the stock after the split.
 

Mujahideen

Owner Operator
Midas Member
Site Supporter
Joined
Mar 31, 2010
Messages
13,661
Reaction score
27,117
Location
OTR

trollol
 

EO 11110

CENSORSHIP KILLS
Mother Lode
Site Supporter ++
Joined
Jul 31, 2010
Messages
19,230
Reaction score
19,249
Location
clown world
bought a starter position in AVGO, broadcom, this morning. yield is about 3.3 percent. forward earning are ridiculous with the chip mania

will be adding on drops of 10, 20, 30 percent from here. here = 434.xx
 

MrLucky

Gold Member
Gold Chaser
Silver Miner
Sr Site Supporter
Joined
Apr 27, 2011
Messages
2,125
Reaction score
2,733
Location
Really deep down the rabbit hole
Have to take a minute to thank @EO for mentioning ABBV last year. As usual, I wish I had more.....
 

EO 11110

CENSORSHIP KILLS
Mother Lode
Site Supporter ++
Joined
Jul 31, 2010
Messages
19,230
Reaction score
19,249
Location
clown world
Have to take a minute to thank @EO for mentioning ABBV last year. As usual, I wish I had more.....

lol. you pulled the trigger. well done.

had to dump my avgo - thing popped up so fast

had to dump my ohi -- ceo said some stupid stuff on earnings call - worrying about rent collections next year

still holding abbv
 

specsaregood

Silver Member
Silver Miner
Joined
Mar 31, 2010
Messages
1,761
Reaction score
2,808

MrLucky

Gold Member
Gold Chaser
Silver Miner
Sr Site Supporter
Joined
Apr 27, 2011
Messages
2,125
Reaction score
2,733
Location
Really deep down the rabbit hole
They were also messing with BBBY, AMC and BB. So I figured, if you can't beat them, join them, and took a position. Wish me luck.
 

Jarrod32

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Aug 7, 2012
Messages
372
Reaction score
818
Location
South Central Nebraska
A few months back, when they were doing the squeeze on GameStop, it resulted in a broader market decline that revealed a few buying opportunities for me. Doesn't look like we're going to get that this time...
 

MrLucky

Gold Member
Gold Chaser
Silver Miner
Sr Site Supporter
Joined
Apr 27, 2011
Messages
2,125
Reaction score
2,733
Location
Really deep down the rabbit hole
My niece has started day trading. She was doing AMC and txted me. For the next 2 hours we exchanged strategies. One thing led to another and boom, I took a position. She laughed that she should have hopped on when I did. She had to leave AMC on a margin call but was happy anyway. I'm still in the money. We'll see what tmrw brings.
 

MrLucky

Gold Member
Gold Chaser
Silver Miner
Sr Site Supporter
Joined
Apr 27, 2011
Messages
2,125
Reaction score
2,733
Location
Really deep down the rabbit hole
Oh my position is not in AMC and I'm still in the plus column.

She on the other hand had a tough day today but still made money. It's been a great bonding experience.
 

edsl48

Midas Member
Midas Member
Midas Supporter
Joined
Apr 2, 2010
Messages
3,631
Reaction score
7,500
Vale is yielding about 5 1/2% and is IBDs stock of the day
(I own stock in Vale and my stocks have a history of going down FYI)




Vale (VALE) is the IBD Stock Of The Day as the Brazilian miner is looking to exit the coal business. Vale stock is working on a new buy point.

The shift away from coal comes amid a global shift to cleaner-burning fuels. On Wednesday, Vale announced a settlement tied to the divestment of its Moatize coal operation in Mozambique.







Vale is also a major iron ore, nickel and copper producer. With the coal exit, Vale hopes to become a leader in low carbon mining and to be carbon neutral by 2050.

Meanwhile, the economic recovery is broadly lifting mining stocks. Plus, President Joe Biden's proposed nearly $2 trillion infrastructure bill lifted the mining sector.

Iron ore is a key ingredient in steel. Copper and nickel are key commodities used in electric vehicles. Therefore, Vale stock and its peers stand to benefit from higher infrastructure spending and the global shift to electric cars.

In a market with sectors showing strength in flux, investors should keep an eye on those that are still showing decent action as they set up again.

Several other miners besides Vale are trying to consolidate. But mining stocks tend to be volatile, driven by commodity prices. Rio Tinto (RIO) made IBD Stock Of The Day May 5 as it broke out on rising metal prices.


Vale Stock Technical Analysis
Shares rose 1.2% to close at 22.15 on the stock market today, after finding support just above the 10-week line two weeks ago. Vale stock is poised to form a flat base with a 23.12 buy point by Friday, according to MarketSmith chart analysis. It's roughly 4% below the entry.

The relative strength line for Vale stock has rallied close to highs. A rising RS line means that a stock is outperforming the S&P 500 index. It is the blue line in the chart shown. Vale's RS line has been uneven in the longer term.

Among other mining stocks, Rio Tinto fell 2% Wednesday, BHP (BHP) lost 2.1%, and Teck Resources (TECK) eased 1.35%.

Vale stock is No. 1 in its industry group, according to IBD Stock Checkup.

Its IBD Composite Rating, which combines key fundamental and technical metrics in a single easy-to-use score, is an unbeatable 99.

Vale holds a solid Relative Strength Rating of 90 out of a possible 99. That means it has outperformed 90% of all stocks in the past year.

And Vale looks good on other technical metrics as well. It shows five quarters of rising fund ownership and a superior A- Accumulation/Distribution Rating, a sign of institutional buying of shares over the past 13 weeks. As of March, 545 funds owned shares, up 2% from the prior quarter.

Vale Earnings and Fundamentals​

In 2021, Wall Street sees Vale earnings vaulting 389% to $4.65 per share as sales jump nearly 42%, according to FactSet. The Brazilian miner sports a mediocre EPS Rating of 69 out of 99, reflecting in part 2019's losses. Its SMR Rating is an A, on a scale of A to a worst E.

Vale went through a tough 2019, marked by a disaster that killed almost 300 people at its iron ore mine in Brumadinho, Brazil. In February, the miner reached a global settlement tied to the tragedy, helping to de-risk Vale stock.

On April 27, Vale reported record first-quarter earnings of $8.5 billion, despite a seasonally weak period and the pandemic's acceleration in Brazil. The coronavirus outbreak had forced Vale to restrict operations to essential workers at its sites. Now only a quarter of its workforce is still working remotely, Vale said.

In Q1, iron ore output rose 14% and nickel production rose 7%.

"Our beginning of the year was stronger than 2020," CEO Eduardo Bartolomeo said on an earnings call. "We produced in this first quarter, which is seasonally weaker, the same as we produced in the second quarter of 2020. This gives us a lot of confidence in reaching our production guidance for this year."

For 2021, Vale issued production guidance of 315 million-335 million tons.

Fourteen analysts rate Vale stock a buy and one has a sell, FactSet says.
 

EO 11110

CENSORSHIP KILLS
Mother Lode
Site Supporter ++
Joined
Jul 31, 2010
Messages
19,230
Reaction score
19,249
Location
clown world
picked up a little mrk at 73. quarterly div is .65. think they are going to raise it late this year to .70
expect pharma scrips to rise - so many dr appointments canceled during covid mania. looking for some snap back on that
much of big pharma has been dead money for a good while. they are overdue for a run
 

Jarrod32

Gold Member
Gold Chaser
Sr Site Supporter
Joined
Aug 7, 2012
Messages
372
Reaction score
818
Location
South Central Nebraska
I added some Merck a while back, at a little higher cost (around $75 or maybe $77). They just did a spinoff to a company called Organon (similar to the Pfizer/Viatris spinoff) so I am not as convinced on the dividend increase...they lost a lot of revenue with the spinoff. But I do keep looking at MRK and PFE thinking that they are about the only stocks in my portfolio and watch list that are anywhere near buyable right now.
 

EO 11110

CENSORSHIP KILLS
Mother Lode
Site Supporter ++
Joined
Jul 31, 2010
Messages
19,230
Reaction score
19,249
Location
clown world
I added some Merck a while back, at a little higher cost (around $75 or maybe $77). They just did a spinoff to a company called Organon (similar to the Pfizer/Viatris spinoff) so I am not as convinced on the dividend increase...they lost a lot of revenue with the spinoff. But I do keep looking at MRK and PFE thinking that they are about the only stocks in my portfolio and watch list that are anywhere near buyable right now.

read that organon is expected to pay a good divy too. writer speculated 3% or so (at the higher spinoff price)

thanks for the heads up on mrk possibly not raising to .70