10-13-2021, 03:03 PM
(10-13-2021, 01:51 PM)crimsonghost747 Wrote: Just to be clear, I'm not too much against high div payers in general. I fully realize that they have their place in the portfolio of many people, myself included. It is very likely that anything yielding 6-10% will underperform the market in the long-term but in some situations getting that cash flow is worth giving up the growth.I didn't mean to relaunch the lecture on Kerim. I know he has a sense of humor.
I just think that whatever company you invest in, whether it yields 10% or 0%, has to have a sound business model. And I just don't think that is the case for these massive tobacco companies anymore.
You can score on the high yielders if you catch a bottom that lasts for months and trade them. It gets sketchy after that. My experience has been poor the past few years. The only thing that has saved me is selling puts to enter then covered calls. I've seen enough to believe I'll screw this up if I try to buy and hold them for too long. Almost without exception the charts say we are chasing yield traps. Over and over but they are always tempting. Guaranteed 8% return, then you give most or all of it back and you are hoping the dividend will just keep you even.
Back on topic, tobacco may have a nice bottom bounce of non-combustibles news.