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Herbalife Ltd. Message Board

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  • rwagner467 rwagner467 Aug 14, 2012 3:20 PM Flag


    I am looking at a 2.30% dividend. That is above most dividends and has increased year over year. Almost all of my portfolio pay dividends and this is my highest payer. Why would the large institutions want to stay away with a generous dividend like that?

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    • You need to determine if you consider HLF a growth stock or a dividend stock.

      If you consider HLF a growth stock then the dividend does not really matter. However, the growth story has been damaged significantly by Einhorn and that will take time and results to repair.

      If you consider HLF a dividend/income stock then volatility and dividend yield become more important. The volatility of this stock is not something I would tell my grandmother to invest in so that she can sleep easy at night.

      Personally, 2.x% is not what I would consider a generous dividend. 3% is the bare minimum for me when hunting for income generating stocks. There are too many good names with sustainable payouts in excess of 3% to even bother dealing with HLF as a dividend play.

      I'm sorry to be negative. As I said, I'm net long on HLF and think it will recover. I view it as having growth potential and worth the short term volatility. However, you will not find me trumpeting a 2.x% dividend yield.

    • Because the amount of the dividend will not in the slightest make up the loss in pps HLF will suffer

62.59-0.01(-0.02%)Oct 21 4:02 PMEDT