I spent a lot of time going through the list, looking at companies I don't know because you never know where a new idea can come from. In addition to names on their list, when you plug a new name into Yahoo Finance and/or Google Finance you also find competitors including some foreign names which again--you never know where a new idea can come from. The other bit of utility here is that sometimes a stock you have an interest in, but lose track of, might pop up for having an unusually high yield. If you decide you believe the yield is sustainable and already know most of the story then you're not starting from scratch.
I saw one name on there that I knew to have a dividend that could not possibly be sustainable; turns out it has been cut. And from the what the what?-file Garmin (GRMN) was on there yielding almost 5%. The PE is about 10, no debt, more than $7 per share in cash, the dividend is very well covered--when did all that happen? I'm not a buyer of the name despite some good stats as smart phones have GPSs in them and I'm pretty sure Garmin is not participating there or I'd expect the estimates for earnings growth to be more robust. Still I gave the name a little bit of a once over and it was worth the time even if I am not a buyer and if someone knows otherwise about GPS devices embedded in smart phones then I would more interested in the name.
There was also a circuit board maker on there with more than a 5% yield and another odd one was Douglas Dynamics (PLOW) which as you can tell from the symbol makes plow blades and other winter equipment. PLOW yields a little less than 6%, the coverage of the dividend is only decent it has a little more debt than you might like to see but there is a clear an obvious need for the equipment, the business will be easier to understand for most folks than a circuit board company and in the face of a "bad" winter I would think the stock would go up a lot.Both Garmin and PLOW could go on to be lousy holds or great holds but the stories and the numbers were very interesting and in looking through the list (it was very long) there were many other interesting names. For an investor willing to use individual stocks there would no doubt be a name or two compelling enough to buy for anyone spending the time.
A couple of weeks ago I wrote an article for theStreet.com about pairing a high yielding stock with an ETF for each sector as a way capture some meaningful yield, not take single stock risk throughout the entire portfolio, still capture plenty of themes and disparate country exposure and not put all your eggs on one strategy basket. The above offers a pretty good way to do the necessary research for such a concept; the dividend portion anyway.
One funny tweet that Howard Lindzon retweeted (I would link to the original but the user name in Howard's tweet was somehow incorrect): if u r long financial's pls delete your stocktwits act & wire your money to that Nigerian prince who emailed u $$.
That is funny.
One other item that I don't do too often but a brief review of the movie Hanna which just started showing this week on PerPerView on Directv (so it is probably on all the cable systems too). This is the one about the young girl who is trained like an elite, and I mean elite, soldier.
The action was great and the premise was just so odd that we really enjoyed it. The movie however seemed to be poorly structured (or edited) as there were things introduced into the movie that were never explained or resolved. Without giving anything away there were all sorts of things about the Marissa character that they never came back to and they never told us what became of the family--unless we missed it and someone who also saw the movie wants to fill me in. It is still very much worth watching and again, we really enjoyed it.
6 comments:
Roger
Garmin recently purchase a German company called Navigon. Navigon is one of the better GPS mapping apps for smart phones.
I do not own Garmin as a stock, but I have had the Navigon app on my iphone for a couple of years and have found it to very useful, I no longer have use of a stand alone GPS device.
I suspect more than a few readers have had funny (and not so funny)experiences following Garmin instructions.
Two years ago,my wife's Garmin got her going in circles around the research triangle area of 1-40 near Raleigh. She was suuposed to end her journey at a Trader Joe's, but called me stranded in a one-way alley, several miles, as it turned out, from her destination. She was face to face with picketers outside an abortion clinic.
T
thank you JimP
T, "rest-stop in Raliegh?"
from a funny commercial from a few years ago
Keep this up, and you will be accused of being a DZ.
maybe that or be called a jackwagon by the DZ Crew because the post only suggests a portion go to dividend payers.
The word "jackwagon" is a never ending source of laughter to me :-)
Your commentators don't seem to do much road biking or any other endurance sport. They should try it with a garmin tracker or watch...just what you need to stay on form! Thanks for your great postings.
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