What Did You Buy Today?

[fenders53]

(04-16-2020, 12:04 PM)saimash Wrote:

(04-16-2020, 11:43 AM)MikeWa Wrote:

(04-16-2020, 11:34 AM)fenders53 Wrote: Anyone else like IP?  (International Paper)  Boring BIZ but the Div is almost as good as MO or T and the payout ratio around 50%.  I like it down here.  Or is cardboard packaging going away and I just don't realize it?  I think I am going to add some more IP.

I do, especially yield at this price level. I keep adding and don't think their business is going away.

Stupid question here, but thought I'd ask:
So, on March 25th IP entered a 3640day revolving credit agreement worth $750 million (to boost its liquidity)... What does this mean for the company... Is it taking in more debt against its Assets (inorder to have more liquid cash for managing its day-to-day operations/investments) ?
What does this say about the management's faith in withstanding the current event ?
In short, is this a good move ?

Nothing stupid about that question at all.  IMO it means they are preparing for the unknown economy.  They are securing financing for a loan they may or may not need.  They pay a big div.  Payout ratio is low but that could change of course.  They could ask the GOV for a loan with conditions shareholders might not like.  They can do that later if necessary.  This isn't AAPL or JNJ liquidity for sure.  They are in a tough low margin biz, but they've been in business for 122 years so I admit I have a little trust they've seen a bad economy before..

[ChadR]

Added to STOR this morning.

[ChadR]

And y'all have convinced me to start a position in IP this afternoon.

[fenders53]

(04-16-2020, 02:13 PM)ChadR Wrote: And y'all have convinced me to start a position in IP this afternoon.

Comes with our forum money back guarantee Chad.  We will cheerfuly refund double what you paid us for the advice if it doesn't work out.      

Seriously though it's boring and cyclical.  In the bottom third of it's trading range.  When it gets back above 40 don't be afraid to sell a few shares gradually.  This isn't MSFT.  You don't have to worry it will be $100 the month after you sell lol.  If the market ever drops hard I'll be overweight IP at $25.  Some of my attraction to IP is truly the no surprises part. Recessions happen, but the constant drama (like MO) isn't there.  It's hard to be too controversial when you make cardboard boxes, tissue and printer paper. 

[EricL]

(04-16-2020, 11:34 AM)fenders53 Wrote: Anyone else like IP? (International Paper) Boring BIZ but the Div is almost as good as MO or T and the payout ratio around 50%. I like it down here. Or is cardboard packaging going away and I just don't realize it? I think I am going to add some more IP.

Keep in mind that the 50% payout is off trailing earnings. According to 2020 estimates, the payout ratio is nearly 90%, and that is questionable as earnings are a tossup at this point. IP doesn't have a great dividend track record, and its BBB credit rating doesn't leave a ton of wiggle room for a cyclical company.

[fenders53]

(04-16-2020, 03:10 PM)EricL Wrote:

(04-16-2020, 11:34 AM)fenders53 Wrote: Anyone else like IP?  (International Paper)  Boring BIZ but the Div is almost as good as MO or T and the payout ratio around 50%.  I like it down here.  Or is cardboard packaging going away and I just don't realize it?  I think I am going to add some more IP.

Keep in mind that the 50% payout is off trailing earnings. According to 2020 estimates, the payout ratio is nearly 90%, and that is questionable as earnings are a tossup at this point. IP doesn't have a great dividend track record, and its BBB credit rating doesn't leave a ton of wiggle room for a cyclical company.

What's a good track record?  Div growth the past 10 years looks pretty good.  That's usually how far I look back.  I do like aristocrats best but to get a good PE you gotta buy stocks like XOM and SKT borrowing their Divs.

[Otter]

(04-16-2020, 03:46 PM)fenders53 Wrote:

(04-16-2020, 03:10 PM)EricL Wrote:

(04-16-2020, 11:34 AM)fenders53 Wrote: Anyone else like IP?  (International Paper)  Boring BIZ but the Div is almost as good as MO or T and the payout ratio around 50%.  I like it down here.  Or is cardboard packaging going away and I just don't realize it?  I think I am going to add some more IP.

Keep in mind that the 50% payout is off trailing earnings. According to 2020 estimates, the payout ratio is nearly 90%, and that is questionable as earnings are a tossup at this point. IP doesn't have a great dividend track record, and its BBB credit rating doesn't leave a ton of wiggle room for a cyclical company.

What's a good track record?  Div growth the past 10 years looks pretty good.  That's usually how far I look back.  I do like aristocrats best but to get a good PE you gotta buy stocks like XOM and SKT borrowing their Divs.

In the low-margin packaging space, there's also Sonoco (SON), with 37 years of dividend growth. Bemis was also an aristocrat, and acquired by Amcor last year (AMCR). Both sport BBB credit ratings. 

These are not companies that knock your socks off with annual earnings growth, but there is steady (and usually growing) demand for their products. Probably about as steady as it gets in the basic materials space.

[divmenow]

Get ready for a big big up day tomorrow. See ya shorts lol


I don’t know why but I’m tempted to buy SPG. Don’t laugh lol ?

[stockguru]

(04-16-2020, 05:24 PM)divmenow Wrote: Get ready for a big big up day tomorrow. See ya shorts lol


I don’t know why but I’m tempted to buy SPG. Don’t laugh lol ?

Yeah I see the futures are way up. SPG is a nice choice. If they can hold onto that dividend the stock should see $75-80

GILD up $12 AH. I'm loving that

Fenders better start buying. He's missed a big run while sitting on the sidelines 

[fenders53]

(04-16-2020, 06:29 PM)stockguru Wrote:

(04-16-2020, 05:24 PM)divmenow Wrote: Get ready for a big big up day tomorrow. See ya shorts lol


I don’t know why but I’m tempted to buy SPG. Don’t laugh lol ?

Yeah I see the futures are way up. SPG is a nice choice. If they can hold onto that dividend the stock should see $75-80

GILD up $12 AH. I'm loving that

Fenders better start buying. He's missed a big run while sitting on the sidelines 

I can't even believe you said that Guru.  I bought the dip like my wife and daughter at a 50% off shoe sale with a stolen credit card.    Then I hid in the closet scared for weeks waiting for the big dip that hasn't happened yet lol.  I've been trimming almost daily since on the pop and I'll call myself 10% too much in cash now.  We'll just have to wait and see if that was a good idea or not. 

You should mortgage your houses and buy a bunch of mall REITS.  Load up on SKT, airlines, cruise ships and oil too.  That can't go any lower.

[stockguru]

(04-16-2020, 08:49 PM)fenders53 Wrote:

(04-16-2020, 06:29 PM)stockguru Wrote:

(04-16-2020, 05:24 PM)divmenow Wrote: Get ready for a big big up day tomorrow. See ya shorts lol


I don’t know why but I’m tempted to buy SPG. Don’t laugh lol ?

Yeah I see the futures are way up. SPG is a nice choice. If they can hold onto that dividend the stock should see $75-80

GILD up $12 AH. I'm loving that

Fenders better start buying. He's missed a big run while sitting on the sidelines 

I can't even believe you said that Guru.  I bought the dip like my wife and daughter at a 50% off shoe sale with a stolen credit card.    Then I hid in the closet scared for weeks waiting for the big dip that hasn't happened yet lol.  I've been trimming almost daily since on the pop and I'll call myself 10% too much in cash now.  We'll just have to wait and see if that was a good idea or not. 

You should mortgage your houses and buy a bunch of mall REITS.  Load up on SKT, airlines, cruise ships and oil too.  That can't go any lower.

I wont ever buy SKT. Who's that user on here who bought it seemed like ike every day when it was at $14-18 a share? Those pooled shares.... I haven't heard anything since it dropped to $6   

Ummm I think you bought DAL at $30. As least I'm still ahead   

The only money I'm spending on cruise ships is a vacation in 2 years once this crap clears lol. OXY is all i had and I sold out at $15 last week. Was a nice pop from $11-15. Maybe I will do it again    


The only reits I own are O, CCI, DLR, QTS, and EQIX. Mall Reits and office reits will have a tough time collecting rent and keeping tenants. If SPG got cheap enough I will buy. But its up $8 after hours so will wait.

[EricL]

(04-16-2020, 03:46 PM)fenders53 Wrote:

(04-16-2020, 03:10 PM)EricL Wrote:

(04-16-2020, 11:34 AM)fenders53 Wrote: Anyone else like IP?  (International Paper)  Boring BIZ but the Div is almost as good as MO or T and the payout ratio around 50%.  I like it down here.  Or is cardboard packaging going away and I just don't realize it?  I think I am going to add some more IP.

Keep in mind that the 50% payout is off trailing earnings. According to 2020 estimates, the payout ratio is nearly 90%, and that is questionable as earnings are a tossup at this point. IP doesn't have a great dividend track record, and its BBB credit rating doesn't leave a ton of wiggle room for a cyclical company.

What's a good track record?  Div growth the past 10 years looks pretty good.  That's usually how far I look back.  I do like aristocrats best but to get a good PE you gotta buy stocks like XOM and SKT borrowing their Divs.

IP's last dividend increase in October was only 2.5%, and that small increase was made prior to earnings estimates being cut in half.

Not saying it couldn't be a good pick or anything, I just don't put it in the same neighborhood as T or MO when it comes to dividend safety.