Dividend stocks

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more.

Why not register an account and join the discussions? When you register an account and log in, you may enjoy additional benefits including no Google ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

E

Edsl48

GIM2 Refugee
Messages
152
Reaction score
328
Points
193
Interesting situation here

Algonquin Power Is The Only Water Utility I Own
Sep. 26, 2022 6:47 AM ET
Summary
  • After supporting the industry since the late 1990s, I have done an about-face and currently avoid the water utility segment except as part of a larger utility.
  • Negative water trends include lack of affordability, huge investment needs, water as a human right, and Flint-like financial risks.
  • Algonquin Power has ~20% of its regulated utility assets and ~10% of its corporate assets invested in water, providing exposure to water opportunities without putting the entire company at risk.
  • I am not convinced pure water utility investors are receiving adequate compensation for the risks being taken.
Click to expand...

seekingalpha.com

Algonquin Power & Utilities Stock: The Only Water Utility I Own (NYSE:AQN)

Algonquin Power & Utilities stock is the only water utility in my portfolio of 14 utility sector selections. Click here to see why AQN offers a good entry point below $40.
seekingalpha.com seekingalpha.com
 
Last edited by a moderator:
Trying to find some good stocks on sale with the market drop. There are a few good ones out there, but one that caught my eye was Whirlpool (WHR). They had a pretty bad quarter, and the stock took a dump. It may well take them 3-4 quarters to get back fully on track. But this is a good, strong company so they should be just fine long term. Might be a good opportunity to get in on a good company for cheap. They lowered forward guidance to EPS of $19, and the dividend is $7 so it is fairly well covered. At current prices, the dividend yield is around 5.3%. I haven't pulled the trigger yet, but if it dips down below $120 per share (currently at $131, was as low as $125 yesterday) I probably grab some.
 
Jarrod32 said:
Trying to find some good stocks on sale with the market drop. There are a few good ones out there, but one that caught my eye was Whirlpool (WHR). They had a pretty bad quarter, and the stock took a dump. It may well take them 3-4 quarters to get back fully on track. But this is a good, strong company so they should be just fine long term. Might be a good opportunity to get in on a good company for cheap. They lowered forward guidance to EPS of $19, and the dividend is $7 so it is fairly well covered. At current prices, the dividend yield is around 5.3%. I haven't pulled the trigger yet, but if it dips down below $120 per share (currently at $131, was as low as $125 yesterday) I probably grab some.
Click to expand...
i've been eyeballing whr too. i've wanted a piece of them for years -- since they bought maytag - taking out a big competitor
 
i cant stop buying SOJD. the parent company, southern company, raises it's dividend every year since forever. SOJD are so-called baby bonds, with a fixed interest payment every quarter

as i understand it, these baby bonds rank behind other debt, but in front of dividends to common stock holders

at today's price the yield is 6.4 percent. i've been loading up bigger and bigger as it keeps falling. besides a fat payout, the things will rise in price when frbny goes back into low/no interest rate mode. it's share price rides with other fixed income


Southern Co. Series 2020A 4.95% Junior Subordinated Notes due 01/30/2080
Ticker Symbol: SOJD CUSIP: 842587800 Exchange: NYSE
Security Type: Exchange-Traded Debt Security ​




​
QUANTUMONLINE.COM SECURITY DESCRIPTION: Southern Company Series 2020A 4.95% Junior Subordinated Notes due January 30, 2080 issued in $25 denominations, redeemable at the issuer's option on or after 01/30/2025 at $25 per note plus accrued and unpaid interest, and maturing 01/30/2080. Interest distributions of 4.95% per annum ($1.2375 per annum or $0.309375 per quarter) will be paid quarterly on 1/30, 4/30, 7/30 & 10/30 to holders of record on the record date that will be the business day immediately prior to the payment date if the Notes are in book-entry form or on the 15th calendar day prior to the payment date if the Notes are not in book-entry form (NOTE: the ex-dividend date is one business day prior to the record date). The issuer may defer interest payments on the Junior Subordinated Notes on one or more occasions for up to 40 consecutive quarterly periods. Deferred interest payments will accrue additional interest (see prospectus for further information).This security is possibly subject to an early call before 01/30/2025 at 101% of their principal amount plus accrued and unpaid interest within 90 days of a tax event; before 01/30/2025 at 102% of their principal amount plus accrued and unpaid interest within 90 days of the occurrence of a rating agency event (see prospectus for further information). Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. This security was rated as Baa3 by Moody’s and BBB by S&P at the date of its IPO. The Notes are unsecured, junior subordinated obligations of the company and are unsecured, subordinated obligations of the company and will rank junior to the company's senior debt, junior to unsecured, subordinated indebtedness of the company and will rank equally with all existing and future unsecured, junior subordinated of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.


​
Stock
Exchange		Cpn Rate
Ann Amt		LiqPref
CallPrice		Call Date
Matur Date		Moodys/S&P
Dated		Distribution Dates15%
Tax Rate
4.95%
$1.2375​
$25.00
$25.00​
1/30/2025
1/30/2080​
Baa3 BBB-
8/02/2022​
No​
 
cheka said:
i cant stop buying SOJD. the parent company, southern company, raises it's dividend every year since forever. SOJD are so-called baby bonds, with a fixed interest payment every quarter

as i understand it, these baby bonds rank behind other debt, but in front of dividends to common stock holders


​
Click to expand...
I just own SO. I have it at a $53 cost basis, so I am up 20% on share price and have a yield on cost of a shade over 5%. Nice reliable dividend on that one.
 
just bought 5 year capital one cd at fidelity -- 4.9 percent, call protected, fdic insured. this is the highest interest rate yet. i watch it daily

the credit card companies may be signaling trouble. they are consistently the highest rate on cd. amex, cap one, discover all offering above market
 
cheka said:
just bought 5 year capital one cd at fidelity -- 4.9 percent, call protected, fdic insured. this is the highest interest rate yet. i watch it daily

the credit card companies may be signaling trouble. they are consistently the highest rate on cd. amex, cap one, discover all offering above market
Click to expand...

So what are you projecting inflation at for the next 5 years? High rates now are a sign the debt markets are imploding. Debt is really the last thing I want to buy.
 
Voodoo said:
So what are you projecting inflation at for the next 5 years? High rates now are a sign the debt markets are imploding. Debt is really the last thing I want to buy.
Click to expand...
i see recession and rate cuts within a year. the (communist) economy of stagnation and corruption settles into low rates and low/no growth for a few more years. obama economy 2.0

i can sell the cd's for a profit if i choose (if my forecast plays out)

the imploding debt markets that you mentioned are part of the recession and rate cuts

on inflation -- it will drop dramatically (on paper) as we lap the high inflation of 2022 with 2023 prices that will increase low single digit from 2022

how do you see things playing out?
 
Last edited:
cheka said:
i see recession and rate cuts within a year. the (communist) economy of stagnation and corruption settles into low rates and low/no growth for a few more years. obama economy 2.0

i can sell the cd's for a profit if i choose (if my forecast plays out)

the imploding debt markets that you mentioned are part of the recession and rate cuts

on inflation -- it will drop dramatically (on paper) as we lap the high inflation of 2022 with 2023 prices that will increase low single digit from 2022

how do you see things playing out?
Click to expand...

I think we've already played that game and it will be new this time. The math has gotten to the point where they can't expand this debt bubble anymore. I think we've seen a 5,000 year low rates and I don't expect that again in my lifetime.
 
For those who like their dividends from preferred stock, I've come across what I think is a reasonable option.
Cenex/Harvest States issues preferred stock with a set call date, with a call price of $25. You can often get them in the low $24.xx range, and they pay a dividend in the upper 6.xx% range depending on where you buy it. Symbol: CHSCM.
 
Jarrod32 said:
For those who like their dividends from preferred stock, I've come across what I think is a reasonable option.
Cenex/Harvest States issues preferred stock with a set call date, with a call price of $25. You can often get them in the low $24.xx range, and they pay a dividend in the upper 6.xx% range depending on where you buy it. Symbol: CHSCM.
Click to expand...
interesting option. i found several preferred stocks from them. chscm switches to a variable rate in 2024. i need to see if i can find a credit rating on it

CHSCM Search Results - QuantumOnline.com

QuantumOnline.com offers complete income investment security information for individual investors seeking regular returns on investments.
www.quantumonline.com www.quantumonline.com
 
cheka said:
interesting option. i found several preferred stocks from them. chscm switches to a variable rate in 2024. i need to see if i can find a credit rating on it
Click to expand...
Yes, there are several classes. Some have a higher coupon yield, and those are getting a premium over the $25 base.
It switches to a variable rate IF it is not called at the $25 call amount. I don't recall the exact formula for the variable rate, but it generally still gives a good yield.
 
Bought some Medtronic on the current weakness. It might deserve to be down a bit, but not this much. Good upside, but it might take a while. Decent yield in the meantime.
 
Jarrod32 said:
Bought some Medtronic on the current weakness. It might deserve to be down a bit, but not this much. Good upside, but it might take a while. Decent yield in the meantime.
Click to expand...
good one. dont get a chance to buy that one very often

i've been building positions in DEA and HR - both reits yielding over 6 percent. selling a little bit of oil, xom and bp, to fund the purchases, also sold a little bit of ADM - oil still largest sector holding, but the dividend yields on my sells have shrunk with the strong price appreciation
 
The conversation continues on Gim2. Perhaps it will return here when the lights go out.
 
Not much going on in this thread. Us boring dividend investors just sitting back, raking in our divvies, waiting for a shoe or two to drop in the broader market.
 
I have a large 3M position, and have been holding it waiting to see what is going to happen with the health care division spinoff. It was originally supposed to happen late this year, but now I see they are pointing to "first half 2024" for the spinoff. Just getting the leadership team in place for the new company. Gonna be interesting to see what happens with the dividend...if 3M takes the opportunity to lower their dividend.
 
During the debacle of march 2020 we rolled a large portion of our non ira, non real estate, non physical assets into two stocks, both energy MLP's.. Having owned both in other fashions, lesser stocks acquired by, we had grown to know how they operate and understand the pros and cons to MLP's. If you have never explored them here is a couple basic linky's to what they are, how they function and why a crazy BE sunk a boatload into them..

https://www.investopedia.com/terms/m/mlp.asp

https://www.businessinsider.com/personal-finance/master-limited-partnership-mlp?op=1

So we put 60% into Energy Transfer ET, cost basis low 6's actual average all lots 6.42. Current dividend $1.25 per share. Today's share price high 13's.

Then we put 40% into MPLX LP, cost basis 15 actual average all lots $15.12. Current dividend $3.10 per share. Today's share price over 36.

The way dividends process through K-1's they get broken out, total mystery until mid march when k-1's arrive, part get charged on current year and the rest reduces original cost basis, increasing capital gain per share. Our ET cost basis has been reduced to almost 0, meaning on sale we would have to list the entire sell price as long term gain. Future dividends will now be fully realized in current tax year just like any other. However, if we were to die they reset to closing price on that date to heirs and the reduction of basis restarts to them...

These two stocks cover our monthlies and some level of niceties...
 
Curious if anyone deals with shipping stocks. Have some eco and may sell this week. Interested how others may have done.
 
Voodoo said:
Must be the wrong ticker because that only goes back to Dec 2023.
Click to expand...

I'm probably the least knowledgeable member here when it comes to the stock market. But I do take chances every now and then based upon what I read and my own research. Read about eco several years ago on a maritime forum and decided to take a chance.

www.google.com

Okeanis Eco Tankers Corp (ECO) Stock Price & News - Google Finance

Get the latest Okeanis Eco Tankers Corp (ECO) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions.
www.google.com www.google.com

As to endeavor, that was the first time I tried a miner. Oh well.
 
Jarrod32 said:
I have a large 3M position, and have been holding it waiting to see what is going to happen withhe health care division spinoff. It was originally supposed to happen late this year, but now I see they are pointing to "first half 2024" for the spinoff. Just getting the leadership team in place for the new company. Gonna be interesting to see what happens with the dividend...if 3M takes the opportunity to lower their dividend.
Click to expand...
Well, the spinoff took place on April 1. A 1-for-4 stock assignment...one share of the new company Solventum (SOLV) for every four shares of MMM owned. Gonna take at least a quarter or two for the financials (and dividend amounts) to clear up. I'll probably hang on to all of this until the dust clears, probably this fall after a couple quarterly reports. I'll decide what I want to do with it all at that point.
 
Cracker barrel (CBRL)

Down 40% year to date. Slashes dividend 80% (now 25 cents a quarter).
 
Well, the 3M questions have been answered. A cut (slashed really) dividend and it doesn't appear that the spinoff Solventum will pay a dividend. They got saddled with a bunch of the 3M debt and have indicated that they will focus on debt reduction for the near term. I almost sold all my 3M last week at $105, but got greedy and thought I would just wait until the ex dividend date yesterday. This, of course, gave the stock an opportunity to drop back down under $100. If it gets back up a few bucks, I'll dump it.
 
Hold/buy the entity that comes out relatively debt free. I think that's the Likely reason they do a spin off. Get rid of the baggage and then you have a somewhat streamlined company that you can grow again.
 
You must log in or register to reply here.
Back
Top Bottom