I posted this 11-01-12 and we just hit $11.50.......I see $11 now......DaninFW
"When looking at SBGI today it holds attraction because by buying at today's closing price of $12.27, after receiving $1.15 in dividends by owning till 11-30-12, you will actually only have $11.12 invested as of 11-30-12 and with 60 cents dividend that's 5.4% on your money. I don't think you can lose at these prices. However, I would not be surprised to see SBGI drop to $11.50 range before dividend payout. DaninFW"
I'm going to add some more with a little more weight today. The one time dividend payment in a couple of weeks is now at 10%. The annual normal dividend is 5.2%.
I can't get those returns anywhwere else. I am now holding this for the long haul so if it goes down and I lose some on my principal investment I'm not too concerned right now. I'll add more. It will come back because this is a growth stock for the next few years.
In the current quarter December pacings are very strong and political for the last week of the race was heavier than any of us thought. Lots of spot grab with the leftover money during that last week.
1st quarter will be another quarter guided higher by about 20-25% growth. There isn't much in the way right now except our government and their communication issues. Local advertising, retrans and especially mobile is very healthy. I feel great about where this is as an investment.
You will be far better off investing in the overall S&P 500 over the long run. This is dead money. It will be worth the same 10 years from now and your 4% dividend won't look like much compared to the doubling or more that will happen to SPY in that time.
This doesn't include dividends but the SP500 has paid dividends for its entire history, whilst SBGI only has for the last few years, so if they were included it would bend even more in the favor of SPY.
The Smith family have been terrible care takers of investor money. They are only interested in pursuing their political agenda. If you want to contribute to that, this is your right of course but you are probably better doing that directly.
re:"It will come back because this is a growth stock for the next few years."
Maybe so, but as of Nov 1st, SBGI has lost over 10% since the announcement of the special cash divy. I think Dan will be right about this dropping to 11. I have some of my money tied up in the MREIT sector. Most of those stocks are double digit divy stocks. They have been getting hammered lately. Stocks such as ARR, AGNC and RSO. I will probably dip my toe in the SBGI kiddy pool if it hits 11.
Good luck Martel