01-21-2016, 01:32 PM
Just because his views are different from yours it doesn't make them wrong. I too would be concerned if I owned oil stocks as to how they can keep their distributions going on without taking on too much debt if the oil price remains like this. I haven't taken a deeper look into those oil companies but a quickie at CVX brings up this: In q1-q3 2015 the FCF has been negative. The dividends have been larger than the EPS. Now if that was the trend at oil around $40, what will the trend be in the coming months? Debt looks ok so there is no immediate worries though.
Regarding the shipping company, you should know better than to judge a stock on a single number. If you know nothing about the company except the dividend yield then you aren't exactly in a position to say that it must be a bad investment. Sure it's a sign that there is something to be cautious about... and it's obviously going to be a risky investment with a yield like that. But risky doesn't mean that it has to backfire.
Long story short: you shouldn't stop talking to him just because his view of the markets is different from yours.
Regarding the shipping company, you should know better than to judge a stock on a single number. If you know nothing about the company except the dividend yield then you aren't exactly in a position to say that it must be a bad investment. Sure it's a sign that there is something to be cautious about... and it's obviously going to be a risky investment with a yield like that. But risky doesn't mean that it has to backfire.
Long story short: you shouldn't stop talking to him just because his view of the markets is different from yours.