01-25-2016, 11:40 PM
(01-25-2016, 11:19 PM)Dividendsrule Wrote: It is now at over 5%! Anyone have any reason that this is NOT a screaming buy right now?????????
Because IP operates in a very cyclical industry and cut the dividend as recently as 2009. Earnings estimates have been dropping for both 2015 and 2016, so although the PE looks cheap at around 9 times 2015 earnings, if those numbers drop further, it won't look quite so cheap anymore.
I do agree that the current yield is attractive, just be aware of the history, it is a volatile stock.