UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: ziggy29 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76095  
Subject: Re: SVU Date: 6/19/2012 4:54 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 5
>> The reason SVU is at an 8% dividend yield is because its price has dropped while its dividend remains flat. And this is a dividend in peril. <<

The market is clearly telling us this. I mean, this is an investing climate where investors are desperate for yield. Most income producing investments, be they investment-grade bonds or dividend stocks, are being bid up in price by investors seeking yield. So when a yield is *rising* and the price is *falling* for an income investment, it speaks volumes about what the market thinks about the security of that dividend, even more given the current low-yield environment. People are willing to pay more for income streams today than just about ever in history, so this is a huge red flag.

#29
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Wal-Mart Nixes Apple Pay
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement