RE:RE:RE: ex Dividend date
KozmoT wrote: ... and note that if you bought today the dividend yield is ... 22%
If this trades back to down $2/year divided your only getting around 5.5% yeild and likely a fall back to the low to mid $20s in price... now 5.5% yeild is nice, but it would take 5-9 years of collecting to break even overall depending where it falls to... Now this is an
unlikely scenario in the current environment, but it's a major risk that is not even worst case, worst case as mentioned buy anouther poster is the bottom area of $1-1.50/year where it was trading not long ago.
I personally have no expertise or skin in the game (yet)... but if this experiences the weakness in price that Hungus mentioned maybe we are looking at a more $6-7/year dividend which would be 16-19% but still likely falls to low 30s maybe sub that and it would take a year of collections to break even... suggesting there is a better price to be had to get into this name.
This is a tougher decision than it appears for investors, I'm at the edge of investing, but I would like to see what the action will be on a walk back of quarterly dividend payout after seeing the action on a record breaking year for this name. The past 5 year average yeild on this is 9.4 which should suggest current dividend payout should lead this to being an $89 stock and it's only achieved about 55% of that, which leads me to feel this name could not reach full value potential at the best of times, what pain this is gonna suffer when it comes back to reality?
Variable dividends make for difficult decisions especially in a commodity space and even more so when they have broken away from showing a base and a special. (I'm invested in one already and looking at this and anouther currently)
We likely get a few answers to these questions by the end of next week (if not this week) with the dividend announcement.
I'm very interested in joining current holders, but I prefer not to have to play catch-up for a couple investment years to join your excitement on this company.