What Did You Buy Today?

[fenders53]

(06-30-2020, 03:58 PM)Dividendwayfarer Wrote: Sold most WFC today around 30% loss in anticipation of dividend cut. I knew I got in for the wrong reason (chasing yield). Another lesson learned for me.

Don't feel lonely. I avoided WFC like the plague, but I have fallen for a half dozen yield traps over the years,  Averaging down when I should be running away.  Pretty sure most all of the regulars have learned this lesson more than once.  There may be a good time to re-enter WFC after some of the dust settles.  Just have to approach it like you have no history with the stock.  When the yield is double the sector average, it almost always ends mediocre at best.  I don't think I've ever had a ridiculously high yielder end as a big win.

[divmenow]

Go PFE and BNTX. Weeeee lol

[divmenow]

(07-01-2020, 07:54 AM)fenders53 Wrote:

(06-30-2020, 03:58 PM)Dividendwayfarer Wrote: Sold most WFC today around 30% loss in anticipation of dividend cut. I knew I got in for the wrong reason (chasing yield). Another lesson learned for me.

Don't feel lonely. I avoided WFC like the plague, but I have fallen for a half dozen yield traps over the years,  Averaging down when I should be running away.  Pretty sure most all of the regulars have learned this lesson more than once.  There may be a good time to re-enter WFC after some of the dust settles.  Just have to approach it like you have no history with the stock.  When the yield is double the sector average, it almost always ends mediocre at best.  I don't think I've ever had a ridiculously high yielder end as a big win.

Same here. I avoid WFC and all banks for that matter. All these banks are going to have to cut dividends going forward. It’s just a sector no matter how cheap it looks always gets cheaper. I traded WFC from $24 to $31 but it was early on when just about every sector was going up on no news and short covering. But it’s a different story now.

[fenders53]

(07-01-2020, 08:13 AM)divmenow Wrote:

(07-01-2020, 07:54 AM)fenders53 Wrote:

(06-30-2020, 03:58 PM)Dividendwayfarer Wrote: Sold most WFC today around 30% loss in anticipation of dividend cut. I knew I got in for the wrong reason (chasing yield). Another lesson learned for me.

Don't feel lonely. I avoided WFC like the plague, but I have fallen for a half dozen yield traps over the years,  Averaging down when I should be running away.  Pretty sure most all of the regulars have learned this lesson more than once.  There may be a good time to re-enter WFC after some of the dust settles.  Just have to approach it like you have no history with the stock.  When the yield is double the sector average, it almost always ends mediocre at best.  I don't think I've ever had a ridiculously high yielder end as a big win.

Same here. I avoid WFC and all banks for that matter. All these banks are going to have to cut dividends going forward. It’s just a sector no matter how cheap it looks always gets cheaper. I traded WFC from $24 to $31 but it was early on when just about every sector was going up on no news and short covering. But it’s a different story now.

IMO there are only two reasons to own a bank.  An above average Div and when the whole sector has melted down.  I expect the Divs may get cut in half to meet regulatory requirements.  This wouldn't be a horrible time to start averaging into a very high quality bank for the long term.  I'd go very slow though.   The FED will save them from devastation though.  Gotta pick your spot for most of your share entry.  

I only own 100 shares of USB.  I keep a cover call sold against it every month so the income keeps coming.  I see no possibility any major bank is going to fly high anytime soon, but I think we can catch an over-reactive dip at some point.  I'll be patient and keep it a tiny part of my port.

[Otter]

I am out of WFC, as well.

[kblake]

MET or AFL?? They both look like decent buys at these levels.

BTW I'm liking the UPS and FDX moves today. Glad I bought them near the lows

[fenders53]

(07-01-2020, 10:10 AM)kblake Wrote: MET or AFL?? They both look like decent buys at these levels.

BTW I'm liking the UPS and FDX moves today. Glad I bought them near the lows

MET is pretty close to a top 10 holding in my port.  Both MET and AFL are good long term holds IMO.  They need interest rate spreads to thrive so like a bank I see no near-term catalyst.  That didn't stop the price from spiking last month though.  Current prices are good enough for both but you might get a chance to add more shares cheaper.  They were insanely cheap in March.  AFL is an aristocrat of course, MET froze their dividend for several years during/after the GFC but I consider them both steady DIV stocks and the current yield for MET is very good.  If you aren't aware, MET has been the manager for the US GOV employee retirement plans since at least the mid-1990s.  That's a big and steady cash cow for them.  They have to remain stable so I suppose that hurts the chances of future div increases, though they did raise it slightly last quarter.  I may go nibble a few more shares now.  I like that big dividend check. 

[divmenow]

Added heavily into PFE. Its now in my top 10. This stock was way too cheap even without the covid news. Buying more and more defensive names moving forward.

I will add to TECH if it ever corrects more then 10% lol

[kblake]

I added to PFE as well and bought some MET and LHX

[ChadR]

Added to PFE.

[fenders53]

Everyone please stop hyping PFE. I'm already overweight lol. I did sell a couple PFE puts at strike 32 on Monday. That is looking like easy quick money. Don't forget to start trimming some PFE around 40 if you get in deep. It's been tormenting me for decades while I dream it might run to $50. Someday it will so I'll always keep some shares.

[kblake]

Glad I sold D in the pre-market at $83.25. I split the proceeds between DUK and SO. D is now down $5 and probably headed to $70. Shareholders got screwed. I'm sure Buffet used his dividends from OXY to pay for this transaction lol