RE:RE:Pulcan makes major investment $10k, DIV $3.20 targetTommy123 wrote: Welcome aboard, sir. You'll find that DIV is one of the most overlooked stocks, yet arguably the best run company in Canada. I think it's because it has a small market cap, so not many analysts cover it. But where else can you get an almost 8.5% dividend that increases every few quarters? You simply cannot find anything as good as DIV.
As the press release hinted at, I suspect another dividend increase is coming in early 2023, considering that they could afford to pay far more than they are right now. They've increased it from 20 cents to 23.5 cents in the last little while, and factoring in the DRIP, they could pay 28 cents. I think we may get close to that by the end of next year, especially since Mr.Lube is planning an aggressive expansion. Maybe even over a 30 cent dividend if they make another acquisition, which I'm sure they will.
Let's get blunt, Tommy...
BLOW IT OUT YOUR @$$!
#1 - Pulcan has been here for a while he posts every month or so here, he hasn't just (apparently) entered, he's a similar broken record pumper like yourself.
#2 - Best run company... WTF are you talking about, this is a royalty investment portfolio, this isn't a 'company' by most common standards, and 'best run' is extreamly subjective and what are we relating this to?
#3 - Dividend, you realize it's taken 2.5 years for them to pay the same dividend pre-Covid yet the portfolio has not changed much at all, there are many names that never lowerd thier dividends and have increased them 10-25+% in that time period.
#4 - You can find a large numbers of stocks that have much higher dividend potential let alone massive market price upsides, especially with the major current draw down with some companies getting not too far away from the Covid drop area, DIV return potential is rather low and somewhat capped. A few months ago I pointed out the revenue expectations and what room they may eventually have for increases. Which was as per last report was 2 cents more than the distribution which is 7.8% potential, that is likely to raise to 3-3.5 cents which would be about 13.2% potential and that's generous. CNR for one is going to announce a dividend raise of 10-20% in a few months which is a regular thing with little guessing. ARE currently yeilds 7.6% that has a significant growing payout over the past 10 years and is a great candidate to double in price in the mid-term when some issues get resolved. We are only off about 15% from our 52 week highs, so I can't really consider us a solid deal in this market place if you do your due diligence and go hunting names.
#5 Your projections are some sort of wet dream your having nightly that you have decided to make us aware of and have no basis in reality or the mathematical world.
You seem to want to help people be aware of things here, but your over selling of what is going on here can do much more harm to small retail investors seeking information and awareness of the name that believe what your peddling. Calm down with it!
Now as much as I slag on what Tommy talks about, this isn't a bad hold, especially if your interested in a high stable yeild with limited growth internally but has potential should it be added too. I'm still invested here because the yeild is higher than my margin costs which can be difficult to find in an investment that has less risks than other normal high yeilders (it's a utility hold for me), also the fact I entered at a much lower cost and dividend level post Covid, so depending on your timing you can have a good entry and I currently wouldn't say this is that time and I have no interest in adding. (Early summer had better potential and if this dips back to that area which it has tempted a couple times). I have a whole list of players I would put money into before this one comes up as a play, and as I posted before, I'm actually looking at an exit should it go back to its area of highs, which the recent dividend increase does help move us towards.
You wouldn't be interested in the name for growth, just the high payout with very mild growth potential in that income, if you get lucky and they add new royalties to the portfolio, that would give a chance for more upside. It would be a decent pairing with a low yeilding growing stock for someone who needs income regularly.