Stock ideas

[IHateMyJob2004]

I am having a hell of a time finding undervalued stocks these days. The closest to undervaleud I have found is BAC which carries a 4.3% yield.

http://finance.yahoo.com/q?s=bac

Any investors out there have any ideas for me?

I already own BAC, and will add more on a 2% slide.

Anyways, I want GOOD, ESTABLISHED stocks with 3%+ yields.

Anyone?

I'll be back in a bit. Having a snack while I ponder the future.

 

[Slew Foot]

AT&T/SBC, yield is around 5%.

Verizon is around 5% as well.

 

[kranky]

Altria Group.

 

[IHateMyJob2004]

Altria ... MO

Not a bad idea.

As for AT&T/SBC ... and even Verizon ... I don't like telecom in general. Good for some, jsut not for me. Regardless, thanks for the idea.

I'll take a peak at MO.

 

[IHateMyJob2004]

MO: THe PE is to high. Should be around 12/13. The yield is probably holding it up. $60 would be OK. Are tehy past the liability issues yet?

 

[JS80]

Long ARRS, LTON
Short GOOG, AAPL, CRM

 

[Hyudra]

dividend yeild's don't mean the stocks are undervalued, or do they?

 

[IHateMyJob2004]

Originally posted by: JS80
Long ARRS, LTON
Short GOOG, AAPL, CRM

GOOG ... thyat's ascary one to short even though I laugh at anyone who goes long GOOG. There is no way to know where that stock will be in 5 years.

not familiar with the others.

 

[Engineer]

Originally posted by: Hyudra
dividend yeild's don't mean the stocks are undervalued, or do they?

No.

 

[IHateMyJob2004]

Originally posted by: Hyudra
dividend yeild's don't mean the stocks are undervalued, or do they?

Matters on investment philosophy. I mostly use PEG. But, yield is very important to me. For some stocks like PFE and BAC, it makes alot of sense to pay close attention to yield and dividend history. PFE is a good example. The just increased the dividend payout by 35%! I was honestly shocked, but I know PFE is a good long term hold ..... why? Look at this:
http://finance.yahoo.com/q/hp?s=PFE&a=00&b=4&c=1982&d=11&e=30&f=2005&g=v

In 10 years, the stock won't be trading at $25. As long as the dividend is supported as it has been in the past, the yield will provide a "floor".

There is an interesting book on the topic called "Dividends Don't Lie". It's out of print, but you might be able to find it at your library. I've seen it on the net for $4 used though.

 

[Slew Foot]

Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

 

[JS80]

Originally posted by: IHateMyJob2004

Originally posted by: JS80
Long ARRS, LTON
Short GOOG, AAPL, CRM

GOOG ... thyat's ascary one to short even though I laugh at anyone who goes long GOOG. There is no way to know where that stock will be in 5 years.

not familiar with the others.

ARRS: Providor of VOIP hardware to telecoms
LTON: China-play; they sell ring tones, games, etc for cell phones

AAPL: Apple, their stock has run up, iPod sales will slow and the stock will get raped.
CRM: AKA Salesforce.com, they are way overvalued and competition from small and large companies (*ahem* oracle) heating up.
GOOG: way overvalued. 24 times sales valuation hasn't been seen since the 2000 bubble. Their growth is slowing, and I have a theory they will get class action sued for charging for click fraud. Businesses will advertise less on google and go to vertical search engines such as Business.com and others. I think fair value is 350.

 

[JS80]

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

 

[IHateMyJob2004]

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

I own some MRK. I'm holding even though I have covered calls on it. If it gets called away, so be it.

And if you short a stock, you do pay out the dividends.

 

[IHateMyJob2004]

Originally posted by: JS80

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

I honestly don't know how they stay afloat, but they stated that bankruptcy is unlikely. The tru problem si that hte US needs to start buyuing "made in america" or we'll all be in a world of hurt down the road.

 

[Engineer]

Originally posted by: IHateMyJob2004

Originally posted by: JS80

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

I honestly don't know how they stay afloat, but they stated that bankruptcy is unlikely. The tru problem si that hte US needs to start buyuing "made in america" or we'll all be in a world of hurt down the road.

AMEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I don't think that I have ever agreed more on a subject....on any forum!!!

 

[JS80]

Originally posted by: IHateMyJob2004

Originally posted by: JS80

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

I honestly don't know how they stay afloat, but they stated that bankruptcy is unlikely. The tru problem si that hte US needs to start buyuing "made in america" or we'll all be in a world of hurt down the road.

Negative. We send over US Dollars to Japan, they send it back here by buying US goods or US bonds. Win/Win situation.

GM Bankruptcy will be good for the US Economy. It will disband the UAW and make GM more flexible. I guarentee after that they will start making awesome cars.

 

[Engineer]

Originally posted by: JS80

Originally posted by: IHateMyJob2004

Originally posted by: JS80

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

I honestly don't know how they stay afloat, but they stated that bankruptcy is unlikely. The tru problem si that hte US needs to start buyuing "made in america" or we'll all be in a world of hurt down the road.

Negative. We send over US Dollars to Japan, they send it back here by buying US goods or US bonds. Win/Win situation.

GM Bankruptcy will be good for the US Economy. It will disband the UAW and make GM more flexible. I guarentee after that they will start making awesome cars.

And give us a trade deficit of 700,000,000,000+ and rising per year.

By the way, Japan has liquidated US government debt this year while China has stopped buying it (20billion or so for the year). Carribbean Banking Centers now seems to be the big US Government debt purchaser outside the country.

 

[mwtgg]

Originally posted by: JS80
Negative. We send over US Dollars to Japan, they send it back here by buying US goods or US bonds. Win/Win situation.

GM Bankruptcy will be good for the US Economy. It will disband the UAW and make GM more flexible. I guarentee after that they will start making awesome cars.

That's laughable. Having a Top 10 global company go bankrupt would be disastrous.

 

[richardycc]

most REIT have high dividend, as they have to pay out ~90% of the profit, beause its a turst. I used to own FB, around $20/share, paid like $1.25 every qtr, until their parent (FBR) company bought it back, and screwed the whole thing up. FBR is around $10, and still pays out 20cents/qtr, thats like ~7-8%/yr.

 

[jhu]

southern company - so
washington mutual - wm
merck - mrk
bank of america - bac
citigroup - c

 

[Toasthead]

WFC

 

[glenn1]

3% is a pretty big hurdle rate. You're basically limiting yourself to financials, a handful of pharmas and energy/utilities, REITs, cyclicals, preferreds, and foreign stocks.

That being said, there's a couple ways you can approach it. One easy method is to buy an ETF specializing in dividend-paying stocks like DVY. I'm not at work (where I could run a screen for you very easily), but other stocks I know off the top of my head in your desired yield range would be ones like DOW, RPM, LTD, WMI, FNF (those are solid, mid to large cap companies where the yield is pretty secure).

If you want to take a bit more risk, a small-cap with some potential is SYGR. It's yielding over 10% and is a sector without a whole lot of competition (not suprising considering their business model is literally sh!t, they recycle biosolids and wastewater residuals from water treatment plants). It's a bit more touch and go than the rest and definitely should be considered a somewhat speculative pick.

 

[JS80]

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: IHateMyJob2004

Originally posted by: JS80

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

I honestly don't know how they stay afloat, but they stated that bankruptcy is unlikely. The tru problem si that hte US needs to start buyuing "made in america" or we'll all be in a world of hurt down the road.

Negative. We send over US Dollars to Japan, they send it back here by buying US goods or US bonds. Win/Win situation.

GM Bankruptcy will be good for the US Economy. It will disband the UAW and make GM more flexible. I guarentee after that they will start making awesome cars.

And give us a trade deficit of 700,000,000,000+ and rising per year.

By the way, Japan has liquidated US government debt this year while China has stopped buying it (20billion or so for the year). Carribbean Banking Centers now seems to be the big US Government debt purchaser outside the country.

What do you suppose they will do with all those dollars? Hoard the cash?
US Dollars have to be spent in the US (eventually). Whether it's through investment or trade, either of which is GOOD for the US economy. Engineers understand engineering, and economists understand economics.

 

[Engineer]

Originally posted by: JS80

Originally posted by: Engineer

Originally posted by: JS80

Originally posted by: IHateMyJob2004

Originally posted by: JS80

Originally posted by: Slew Foot
Merck is kinda risky but theyre paying 4.7%. GM is even more risky but theyre paying a whopping 10% now (likely because the stock has takena beating recently).

If you short a stock that pays a dividend before you buy-back, do you have to pay the divdend as well?

GM is headed towards bankruptcy.

I honestly don't know how they stay afloat, but they stated that bankruptcy is unlikely. The tru problem si that hte US needs to start buyuing "made in america" or we'll all be in a world of hurt down the road.

Negative. We send over US Dollars to Japan, they send it back here by buying US goods or US bonds. Win/Win situation.

GM Bankruptcy will be good for the US Economy. It will disband the UAW and make GM more flexible. I guarentee after that they will start making awesome cars.

And give us a trade deficit of 700,000,000,000+ and rising per year.

By the way, Japan has liquidated US government debt this year while China has stopped buying it (20billion or so for the year). Carribbean Banking Centers now seems to be the big US Government debt purchaser outside the country.

What do you suppose they will do with all those dollars? Hoard the cash?
US Dollars have to be spent in the US (eventually). Whether it's through investment or trade, either of which is GOOD for the US economy. Engineers understand engineering, and economists understand economics.

There's nothing that states that those dollars can't simply be exchanged for other currencies. Nothing states that they have to be spent here. Since the Japanese are selling US government debt, they apparantely seem to think it's not a good of a deal as it once was.

You an economist?