I sold RSO today. I am just too worried about the low eps, dilution, SPO for them to hold the dividend. I'll watch it thought. I want some recommendations on other stocks. I'm looking for a 3.5% dividend and up. I am young and only 2 years into investing (started at 18) Just looking for some ideas of companies to look into Any helps thanks in advance!
Yeah, Shawn had a good response - i.e. you have to decide what you want to accomplish. Frankly, I've been investing since the 1970's...If I had to go back and do it all again, I think I'd go with the "dividend aristocrat" approach, of picking companies that continually increase their dividends, year after year, in good times and bad. But of course, we've come a long way off the bottom of 2008, so I'd not be too quick to pull the trigger...but you never know what'll come. I teach my son that stocks are 'the land"...and the 'crops' you grow on the land, are the dividends...and you can either reinvest the dividends into more stocks, to create more cash flows...or maybe use it to supplement your income, as needed.
Since I'm now retired, I need CASH FLOWS...and have opted to go with some higher yielding preferred stocks...My biggest holding is NRF-C...around a 9% yield....And if rates rise more, yes, it'll fall in price...a "paper loss"...but the cash flows (dividends) are FIXED....And I just reinvest the dividends into more preferreds (no intention of ever selling them or needing to sell them)...So, currently, my balance sheet and stock prices are falling as rates rise - but my cash flows are growing...yeah, an odd thing....But whatever you decide to invest in, I think being a 'value' investor and a 'dividend growth' investor are good ways to go...But maybe not right now...I think we may be in for some rough times...or maybe the FED will just provide crutches for D.C. for another 3.5 years & continue to prop up the markets / but they cannot do that forever, imo...Right now, I'm not all that hot on buying high priced stocks.
I have been invested in an SP500 fund since 1982. I am up 1550%. This does not include dividends which I spent. Very easy on the taxes too. As only the 2% dividend is taxable, and that at 15%. No capital gains until you sell.
I've been following MCGC since the financial crisis, when I made a lot of money trading it in the cents to $2 range. It survived of course, and eventually crawled back into the mid single digits, but it's been dead money ever since. They're paying 50 cents, and are guiding towards quarterly operating income (whatever than means) in the 14 cents range, so the dividend seems safe for the moment. Still, it's just sitting there, it doesn't really seem like a bargain. Given their model, any shock in the economy would be very dangerous.
The biggest issue with investing is capital gains vs. dividends. I have noticed that most people that post are looking primarily for cap. gains, with dividends as an extra. you have took look into how you want to invest then decide which stocks to buy.
This is actually one of the better posts in a while...or at least that sums up as i see it. I got into RSO early and have built it up since, so way ahead...but what i'm looking at is the divs...long story short.(non pun intended), I added today at 5.90. .
MLPs can be great over the long term, energy transportation will always be needed. Just be wary of tax complications as you should hold them in a taxable account. I'd read up on MLP investing and K-1 forms before you go that route.
Two other REITs that pay out a good dividend and have some interesting future possibilities are NRF and NRZ. Cooperman and his hedge fund Omega Advisors just bought a large position in NRZ for the 2nd quarter. They are linked up with their parent company Fortress (FIG), and NationStar (NSM) to accumulate MSRs. Not a typical REIT but like I said, it could be quite lucrative over the years.
Also, don't totally give up on RSO too quick. Already the price is declining enough to already price in a possible dividend cut. If it gets below $5.50, I would certainly get interested again.
I like CLMT & LINE (MLP`S), they are both experiencing troubling times right now, but I believe they will come out smelling like a rose. You have to have some nerve about You because they have price swings, but also pay excellent distributions, some will tell you to stay away probably, but both have been for me. These are investments for me because they do have serious tax consequences if you buy & sell on short term gains.