My start to my 3%-4.5% dividend returns.

[jimnjana]

Yes I read the transcript - not sure if market is already pricing in a cut. Do you own any? I only recently added this and definitely second guessing myself here.

I have a small position. I'm not second guessing at this point. If anything, I'm considering adding a little. Personally, if the comments regarding the divy were in the prepared statement I'd expect the cut before the next quarterly. In this case the CEO was answering a question and basically stated the obvious. Assuming rates tank further, then of course the divy will be cut to protect the credit rating. I think some of the decline is Sandy related, but in any case I think the 3-5 yr capital appreciation potential out weighs any temp decline because related to the storm or concern about the divy.

 

[jayc]

Exc is not your gramma's utility stock. Very volatile. There is some belief div will be cut after recent q3 call. I think that is baked into price. Sure hope so as i own it.

Yeah... It was 3 months ago and I forgot to mention or forecast the hurricane, random questions posted to ceo, and misc other random events that make this an ever changing world. I would not stick with the buy/hold theory on any stock for 30 years. Even the much beloved here vwelx & vwinx have annual turnover rates of 38% & 48%.

If in a tax deferred account and you think the stock is oversold, buy 25-50% of your present position and if it bounces up sell to help lower your cost basis on the previous position.

 

[accountingsucks]

Yeah... It was 3 months ago and I forgot to mention or forecast the hurricane, random questions posted to ceo, and misc other random events that make this an ever changing world. I would not stick with the buy/hold theory on any stock for 30 years. Even the much beloved here vwelx & vwinx have annual turnover rates of 38% & 48%.

If in a tax deferred account and you think the stock is oversold, buy 25-50% of your present position and if it bounces up sell to help lower your cost basis on the previous position.

It's getting hammered again. Either the CEO is incompetent in not knowing that a comment re: dividend cut would hammer the stock, or it is a carefully crafted forewarning of a cut sometime in 2013. Neither of these are good scenarios. If the latter, the question becomes does this drop fully anticipate a div cut? I don't think that's the case. If they did actually cut dividend I could easily see this in the mid 20's as it does not have any growth to speak of so investors are only holding it for the dividend. For that reason I have put in a stop loss order abit below what it's trading at.

 

[haha]

It's getting hammered again. Either the CEO is incompetent in not knowing that a comment re: dividend cut would hammer the stock, or it is a carefully crafted forewarning of a cut sometime in 2013. Neither of these are good scenarios. If the latter, the question becomes does this drop fully anticipate a div cut? I don't think that's the case. If they did actually cut dividend I could easily see this in the mid 20's as it does not have any growth to speak of so investors are only holding it for the dividend. For that reason I have put in a stop loss order abit below what it's trading at.

That may be a good idea, but likely it is not. EXC has not shown any recent growth, but it is highly leveraged to power prices, and thus to natural gas prices in their market generation unit. Recent history has been very negative, both for NG prices and power prices. These things tend to be cyclical. EXC is not a typical grind-it-out electric utility. It has the largest nuclear fleet in USA, and in most years the one with the best operating statistics. It performed admirably during Sandy. However, the merger was likely an error, a monument to the retiring CEO, as it saddled them with debt that pinches right now.

A utility needs satisfied shareholders in case it needs equity, but even more urgently it needs to please the bond rating agencies as it will certainly and frequently access bond markets. That is the big bind that Exelon finds itself in right now.

Say the dividend were cut to $1.00, in my mind an unlikely but not impossible event. At current prices it would have a yield a bit over 3%, not great and not a good scenario, but also not a big disaster.

My guess is that barring further negative news, the big selling pressure is gone, but also there is very little buying interest. Earlier today there was a burst of volume on falling prices, but it dried up and prices have continued a slow fall on low volume.

Likely best to neither a buyer or a seller be- unless you are too exposed to short term losses and your hand is forced.

Ha

 

[heeyy_joe]

I have found this site useful when researching preferred securities with a quarterly dividend:

QuantumOnline.com Home Page

You do have to register with your email address but there are no subscription fees.

 

[pperl]

Here are the issues vis-a-vis dividend bearing stocks, of which I own many, if the politicians in this country cannot solve the 'fiscal cliff' and the only way for these two ignorant parties to do so is via compromise then the economy will falter, possibly fail, and dividend stocks will not be a decent investment. I personally favor having at least 20% of one's portfolio in gold mining, not gold, but gold mining stocks because they help to counter a downturn.

If the 'fiscal cliff' issue is resolved, here are some decent dividend paying stocks: SCCO, MSB, GNI, SDT, AGNC, NLY, ECT, CYS, PER, TWO, FRHLF (or FRU.TO), VOC, HTS, CHKR .

 

[Gatordoc50]

Good info here. Thanks.