Playing With Fire? Four Huge Dividends up to 16.5% the Pros Say We Should Avoid

Our Archive

Search completed

Playing With Fire? Four Huge Dividends up to 16.5% the Pros Say We Should Avoid

Wall Street analysts have “Buy” ratings on 388 stocks in the S&P 500. That’s over 76% of the index!

Thank you, suits, for the curation. No, seriously. We contrarians are going to comb through the Holds and, even, the lone Sell:

Analysts Rate Most Stocks as “Buys”

Source: S&P Global Market Intelligence

Analyst optimism is the norm. Analysts need access, companies provide them with access. One hand washes the other, thus it is rare to see unfavorable ratings on stocks.

The problem with a Buy rating is that there is nobody left to upgrade the stock. Every delta is a downgrade.… Read more

Read More

5 “Inaugural Dividends” Paying Up to 10%

Which dividend is most likely to be hiked?

Usually, the brand-new payout.

Chief Financial Officers are a conservative bunch. A CFO will only agree to pay a dividend if they know they can:

  1. Make the payment comfortably.
  2. Hike the dividend repeatedly for years to come—with said comfort.

The hike part is important because rising dividends drive stock gains. I’m talking about hundreds or even thousands of percentage points in potential gains.

Let’s consider Apple (AAPL) and its inaugural dividend moment. In March 2012, the tech giant initiated a regular dividend of $2.65 per share. The payout was a catalyst for 12 subsequent years of moonshot performance.… Read more

Read More

Categories