What Did You Buy Today?

[fenders53]

(04-16-2020, 03:10 PM)EricL Wrote:

(04-16-2020, 11:34 AM)fenders53 Wrote: Anyone else like IP?  (International Paper)  Boring BIZ but the Div is almost as good as MO or T and the payout ratio around 50%.  I like it down here.  Or is cardboard packaging going away and I just don't realize it?  I think I am going to add some more IP.

Keep in mind that the 50% payout is off trailing earnings. According to 2020 estimates, the payout ratio is nearly 90%, and that is questionable as earnings are a tossup at this point. IP doesn't have a great dividend track record, and its BBB credit rating doesn't leave a ton of wiggle room for a cyclical company.

Keep in mind the Div is up 500% the past ten years, up ten consecutive years.  How many aristocrats have matched that?  It's a short list, very short.  You are seriously cherry picking data focusing on the smallish div increase this year.  Free cash flow is also up ten consecutive years.  IP share price is down 50% off it's high.  I completely get it they are in a boring competitive business and the near-term future may be a rougher ride than recent years.  I very much respect your balance sheet analyzing abilities but if I get scared out of IP I might as well sell half my port in this market.  I only wish some of my stocks had their outlook.  If IP dips further (which I expect), I will buy some more shares. It's 1% of my port right now.