(11-09-2021, 06:25 AM)rayray Wrote:I won't bash MO and PM. MO may very well be a decent investment at this end of their price range. But if I want more drama in my life I'll just go check out my sister-inlaw's Facebook page.(11-08-2021, 09:48 PM)fenders53 Wrote: Sold my last 100 shares of MO and I am now tobacco free. If it gets crazy cheap yet again I might be tempted to swing trade it.
i own pm and mo
they're troublesome for sure
certain companies are just a thorn in an investors side, t/vz/mo/pm/gild, off the top of my head--sometimes i think lower the divi or get rid of it then focus on lowering debt and growth
Seriously though, I am just streamlining the port gradually for retirement. I have been killing a ticker every week or two and most of my high yielders didn't make the cut. Just more headwinds than I care to track. I wasn't impressed by their blown acquisitions, but I actually think MO is doing a decent job with all the regulatory headwinds. You know, the headwinds that will never go away. I spread the money out among my index funds. It's my opinion MO won't outperform any US index over the next five years.
They are trapped and can't lower the dividend. Investors will head for the exit. For the most part investors have mediocre trust in the management of their high yield stocks. Most would worry they are going to find a way to waste a lot of the money saved from the dividend cut. Let's face it, most of these stocks don't pay a 6%+ dividend because things have been going well the past decade.