Has anyone been watching SVU?It is at a 8 per cent dividend?
Sure I watch SVU-one of my favorite shows.If you are talking about the stock, are you really swayed by a post from someone you don't know on an Internet message board?You shoulda bought AAPL when you thought it was expensive....
8% from SVU is chicken droppings. Go the Greek corporate bonds -- they are paying over 20%. Everybody knows more yield is better.GordonAtlanta
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.JCP followed a similar path and it just recently cut its dividend to zero.The revenues of SVU have been dropping since 2009, as has its earnings per share. Retail grocery is an ultra-competative market that runs on thin margins in the best of times. But with SVU, marketshare is gradually being lost to the super discounters, like Walmart, Target, Costco and local super discounters. And a dividend cut in 2008 from .175 to .88, where it has remained since, is definitely not a good sign.BruceM
>> 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
Ziggy lets be honest - it is more than a "red flag" - it is a bubble and like all bubbles it will burst, people will deploy hell out of it, people will loose a lot of money and life will go on.Buying bonds today is a playing Russian roulette with no certainty how many chambers are empty. Buying yield form stocks is not quite that bad, but certainly far more risky than is has been in the last twenty or more years.It is a time, in my view, to either buy the broad market or carefully buy equities without particularly attention to yield. Nothing wrong with buying dividend paying stocks - but buying or selecting stocks based on their dividend is playing into that bubble. GordonAtlanta
Okay - so the growth factor of the stock should be a major consideration when selecting a high dividend paying stock? I experienced that drop in stock price two years after I had purchased FRONTIER FTR and now the dividend is high but the stock has dropped 50% in value. it is a smallposition but amwondering now how tocoorectthis error in my selection ---still learning....
Trailing stops can be a tool.
"how to correct this error in my selection"First, as with any stock, you need to have some reason to buy it in the first place. I have not followed this stock, so I do not know what it would be.Second, a stock should be bought when it trends up and sold when it trends down. I use moving averages and moving average crossovers to determine that, as do most people. If you look at a chart, you can see that on 7/28/2010 the (8,55) moving average crossover went positive, and this condition continued until 2/23/2011, when it went negative. If you bought and sold on those dates respectively, you would have made a bit over 14%. After that, aside from a very short movement up in May 2011 which would have been difficult to play profitably, the trend is down from June 2011 almost to the present. Oddly enough, the (8,55) moving average crossover just went positive on 6/18 of this year, and the stock actually bucked the trend of the market and went up about 1% today.I have no idea what is going on, but this is probably not the time to sell. Wait and see if you can get back some of your losses in the next few days, and look for news on this thing that may tell you something.
ltangel:gee-you do get around on all the boards.Be careful of this one. remember SVU on the TV program "Law & Order" stands for "Special Victims Unit."I had been contemplating an investment in SuperValu about 6 months ago and decided to contact someone who was an affiliate owner of a market that was bought out by Supervalu. He felt that the dividend wasn't safe and eventually was going to disappear. he really had nothing good to say about the future prospects of this company.bottom line-He was so negative on this company that I decided not to invest.Gracepeace
thanks all - so much to learn!!!! Any suggestions about my FRT holdings?
You reallly do your homework !! Would not of thought of that strategy! Hey -after a few "mistakes" , I try to do better!
Thanks - are you looking at any other growth/divivdend stocks to add to your portfolio? Also been looking at the following reits: O REG KIM MNR VNOdecided to start to make a list of what it costs to purchase and saw that these ae all the higher end than a year ago -ss thought iwould wait a nd jumpin bit by bit as the price dips again- still learning - any comments?
And today the news about SVU that was expected: Dividend is suspended.Down another $1.25 in AH trading.Another example of knowing the company and business behind the dividend. If it sounds too good to be true ...Gene
You shoulda bought AAPL when you thought it was expensive.... I was able to get a few shares of AAPL back when it was $89 a share.
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