Thoughts on Lumen Techologies?

[ken-do-nim]

Lumen is the highest dividend stock on the S&P 500.  It looks like it went public on March 1st. The dividend is 10.10%.

[vbin]

(12-24-2020, 08:04 AM)ken-do-nim Wrote: Lumen is the highest dividend stock on the S&P 500.  It looks like it went public on March 1st.  The dividend is 10.10%.

Burry been buying it. Buffet had it when It was only Century link for some time I think and then he gave up. There is value but very risky also. I have some.

[EricL]

Take a look at the long-term performance, this is likely not a stock you want to own for anything other than a trade or speculation.

   

Has a junk BB credit rating, negative earnings growth over the last ten years, and multiple dividend cuts.

Looks like a classic value trap to me, not a high-quality dividend growth type of investment.

[vbin]

(12-24-2020, 11:21 AM)EricL Wrote: Take a look at the long-term performance, this is likely not a stock you want to own for anything other than a trade or speculation.



Has a junk BB credit rating, negative earnings growth over the last ten years, and multiple dividend cuts.

Looks like a classic value trap to me, not a high-quality dividend growth type of investment.

Yup, I bought some in excitement of Burry's news and some other value thesis I found online. There are better investments. I will be existing asap.

[fenders53]

Almost always the same story when yield is double or more of normal. Look hard and you will usually find excessive debt on a bad balance sheet and/or excess use of leverage involving options trading. A market down hard is about the only exception.

[ken-do-nim]

I didn't expect to see such bad fundamentals on an S&P 500 stock. Okay thanks all!