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What Did You Buy Today?
(06-30-2020, 03:58 PM)Dividendwayfarer Wrote: Sold most WFC today around 30% loss in anticipation of dividend cut. I knew I got in for the wrong reason (chasing yield). Another lesson learned for me.

You aren't alone, I added recently as well.
My website: DGI For The DIY
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(06-30-2020, 03:05 PM)fenders53 Wrote: Somebody convince why I should buy ED. Divemenow is not the only one that owns it here. I hold about six UTEs at all times. They seem to offer more growth potential with a very reliable dividend.

ED isn't the highest yield, or the highest growth, or the best valuation, but it is a very good company.

41 years of dividend growth, solid A- credit rating, reasonable ~70% payout ratio, 4.25% yield.

Not going to get you rich quick, but probably won't give you heartburn either. That's worth something in this market.
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(06-30-2020, 04:08 PM)EricL Wrote:
(06-30-2020, 03:05 PM)fenders53 Wrote: Somebody convince why I should buy ED.  Divemenow is not the only one that owns it here.  I hold about six UTEs at all times.  They seem to offer more growth potential with a very reliable dividend.

ED isn't the highest yield, or the highest growth, or the best valuation, but it is a very good company.

41 years of dividend growth, solid A- credit rating, reasonable ~70% payout ratio, 4.25% yield.

Not going to get you rich quick, but probably won't give you heartburn either. That's worth something in this market.
No heartburn is worth something for sure.  I'll keep it on the radar.  Someday all the UTEs will dip for more than a week.  None of them are particularly undervalued for a long time now.
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And selling a UPS covered call turns out to be a bad call a few hours later. I had no idea FEDEX was reporting last night. Good thing I stole the UPS shares in the low 90s because I am probably going to leave a few points on the table again.

I'll look for a new hedge soon, but I won't be buying SPY puts. Maybe sell TLT put instead.
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(06-30-2020, 03:58 PM)Dividendwayfarer Wrote: Sold most WFC today around 30% loss in anticipation of dividend cut. I knew I got in for the wrong reason (chasing yield). Another lesson learned for me.
Don't feel lonely. I avoided WFC like the plague, but I have fallen for a half dozen yield traps over the years,  Averaging down when I should be running away.  Pretty sure most all of the regulars have learned this lesson more than once.  There may be a good time to re-enter WFC after some of the dust settles.  Just have to approach it like you have no history with the stock.  When the yield is double the sector average, it almost always ends mediocre at best.  I don't think I've ever had a ridiculously high yielder end as a big win.
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Go PFE and BNTX. Weeeee lol
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(Yesterday, 07:54 AM)fenders53 Wrote:
(06-30-2020, 03:58 PM)Dividendwayfarer Wrote: Sold most WFC today around 30% loss in anticipation of dividend cut. I knew I got in for the wrong reason (chasing yield). Another lesson learned for me.
Don't feel lonely. I avoided WFC like the plague, but I have fallen for a half dozen yield traps over the years,  Averaging down when I should be running away.  Pretty sure most all of the regulars have learned this lesson more than once.  There may be a good time to re-enter WFC after some of the dust settles.  Just have to approach it like you have no history with the stock.  When the yield is double the sector average, it almost always ends mediocre at best.  I don't think I've ever had a ridiculously high yielder end as a big win.

Same here. I avoid WFC and all banks for that matter. All these banks are going to have to cut dividends going forward. It’s just a sector no matter how cheap it looks always gets cheaper. I traded WFC from $24 to $31 but it was early on when just about every sector was going up on no news and short covering. But it’s a different story now.
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(Yesterday, 08:13 AM)divmenow Wrote:
(Yesterday, 07:54 AM)fenders53 Wrote:
(06-30-2020, 03:58 PM)Dividendwayfarer Wrote: Sold most WFC today around 30% loss in anticipation of dividend cut. I knew I got in for the wrong reason (chasing yield). Another lesson learned for me.
Don't feel lonely. I avoided WFC like the plague, but I have fallen for a half dozen yield traps over the years,  Averaging down when I should be running away.  Pretty sure most all of the regulars have learned this lesson more than once.  There may be a good time to re-enter WFC after some of the dust settles.  Just have to approach it like you have no history with the stock.  When the yield is double the sector average, it almost always ends mediocre at best.  I don't think I've ever had a ridiculously high yielder end as a big win.

Same here. I avoid WFC and all banks for that matter. All these banks are going to have to cut dividends going forward. It’s just a sector no matter how cheap it looks always gets cheaper. I traded WFC from $24 to $31 but it was early on when just about every sector was going up on no news and short covering. But it’s a different story now.
IMO there are only two reasons to own a bank.  An above average Div and when the whole sector has melted down.  I expect the Divs may get cut in half to meet regulatory requirements.  This wouldn't be a horrible time to start averaging into a very high quality bank for the long term.  I'd go very slow though.   The FED will save them from devastation though.  Gotta pick your spot for most of your share entry.  

I only own 100 shares of USB.  I keep a cover call sold against it every month so the income keeps coming.  I see no possibility any major bank is going to fly high anytime soon, but I think we can catch an over-reactive dip at some point.  I'll be patient and keep it a tiny part of my port.
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I am out of WFC, as well.
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MET or AFL?? They both look like decent buys at these levels.

BTW I'm liking the UPS and FDX moves today. Glad I bought them near the lows
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