Quote:
Originally Posted by ChiliConCarnage
Healthy companies will rarely have 8.5% dividends so that stands out right away. Unless it's something cyclical and temporary, for instance, Cal-Maine went crazy high during the avian flu thing that caused egg prices to go up. Anything much above 5ish should draw extra attention. REITs don't pay taxes and have to distribute 90+% of profits so they get big divs. The taxes are passed onto the investors because you have to pay on income instead of cap gains.
SSW has a 218% payout ratio. Just the common shares dividend seems more than income can cover. Looking at the balance sheet, they've been diluting shares which probably has caused the stock to sink.
cvgw looks nice though. Put it on my watchlist.
|
Yeah, I think SSW paid about 5% when I bought it, but then the stock dropped 40%, which drove the dividend yield up. I haven't heard anything about them cutting it, which would be bad, so I'm hoping that they're expecting the price to go back up. I think it cratered a couple of years ago when that Korean shipping company went belly up, and I figured that would help its price. But I guess we're embracing American steel or whatever.
CVGW has been a very nice stock for me. I find it funny that avocados are that big an industry, but hey, guacamole.