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Inergy, L.P. Message Board

  • vickersviscount vickersviscount Jun 12, 2008 5:23 PM Flag

    My 2 cents on falling prices of dividend stocks

    I own a large cross-section of "infastructure" stocks, pipelines, propane, shipping, etc. Most pay very large dividends, and most have lost considerable value this year - of course the market is at its lowest since March. . .but. . .my theory is that large institutions, hedge funds, investment banks, etc. have been selling to raise money. . .these funds have lost billions in financial and bank stocks (including mortgage companies like Countrywide and IndyMac, etc.). . .the only place they have left to sell are quality companies with great dividends, because those are still "marketable." Institutions seem to hold a huge percentage of these stocks, and as we see with low trading volume, it isn't retail investors like us who drive these. . .simply put, funds have thrown quality out with junk to raise money, and there are not enough retail investors like us to push the price back up. . . .translation - these stocks are great bargains, and I have been increasing my positions for the past few months.