huge dividend blue chips

Discussion in 'Stocks' started by ptrjon, May 19, 2010.

  1. ptrjon


    VZ 6%
    COP 4%

    and for various reasons these lesser stocks:

    LMT 3%
    GE 2%

    Is buy and hold a reasonable play here for the next 10 years? Perhaps sell some deep OTM calls?

    I think it's a reasonable bet that these companies will see growth in their earnings, share prices, and dividend distributions.
  2. You have, of course, verified that all four pay out less than they currently earn? No?
  3. businessstaxes

    businessstaxes Guest

    only rich people own stocks okay.

    many people are unemployed or too poor to own stocks and traders don't have money or care to own stocks even if they pay a dividend of 10%

    and for small business owners,,they rather invest the money in their own business than give it to their stock broker or invest in somebody else's business.

    from my experience,,most of management in public companies are just free loaders and blooksuckers looking to cash out in stock options and suck these companies dry or con public investors...they don't give hoot about the business or customers. the retail investor or pension fund investor as seen as prey or suckers who are bagholders in their view and have no respect and total discregard for the little retail investor.. all you get is piece of paper that can become worthless. i don't want to be an investor in these companies...if these companies were private,,,i wouldn't give them a dime of my money to invest in these theives and parasites of society,,this applies to majority of stocks and securities...not all securities are uninvestable but these bastards never give investors a free lunch. if it's too good to be true its too good to be true,,,and most of the good investments are private that only accredited investors can enter. the small retail investors always gets the leftovers or crap investments after ipo. and rip off prices. and there are lots of scams and rip offs in main street and private business too. imo

    what is good for main street is good for wall street.

  4. ptrjon


    My expectation is that these companies can maintain their dividend payout rate- and that business for these specific companies will be improving over the next few years.

    Also, add PFE to the list.
  5. Better rethink VZ.
  6. If you are willing to take on the principle risk associated with buying common stock and the fact that dividends are not guaranteed and could change tomorrow for only an annual 2% divy return, you might want to check out GE secured corporate notes. There are some medium term ones out there with 6% & 6.5% coupons that you could still get at around par with the right broker dealer.
  7. rew


    The only reason GE isn't bankrupt is because the U.S. government is backing its debt, so it can continue to borrow at low rates as if it was a sound company. I wouldn't touch it with a 10 foot pole.
  8. OK, here's the real deal of high divvies, what I own: JNJ, KFT, KMB, LINE, MCD, MO, SE, WM, plus the OP's COP. Pretty much bulletproof. Later gonna buy PCH, HNZ, PAYX, CNK and OLN when their prices are more attractive.
  9. Bob111


    my insured bank account earn more...huge dividend...
  10. seauouch


    Care to explain?

    They have plenty of free cash flow to maintain the dividend, EPS is down from retirement charges, FIOS rollout etc.
    #10     May 19, 2010