01-11-2015, 07:38 PM
(01-11-2015, 05:03 PM)EricL Wrote: Courier Corp. (CRRC) has had its dividend frozen at $0.84 per share since 2008 and has a market cap of just $165M. Average trading volume on the stock is less than 9,000 shares per day. It's in the book publishing business, which is a declining industry.
According to Yahoo Finance there is no analyst coverage for the stock.
With 1000's of companies to choose from and 100's of high quality dividend growers out there, I personally wouldn't want to invest in something like this. The yield is nice, but that's about all I see that is attractive with the stock.
I'd like to echo this. Why buy this small cap with over 100% payout ratio when there are some stocks which I consider more secure with a higher cap, more history and a more sustainable payout ratio.
You need to rationalise your purchases. For example I could justify exactly why I own all my stocks and believe strongly in them. Any risks I do take I'm aware of and only take them if I feel the market is rewarding me for this risk.
For example;
Would I take BP at a 3% yield considering oil $ atm and pressure on bottom line and it's mexico spill? No
at a 6% starting yield it's worth the risk (for me)
Sure I could go CVX as a SAFER investment buy then I don't get that high starting yield of 6%. (CVX is around 4% at the moment)
But then CVX has a slightly higher forecast dividend increase (in terms of %)
for next year.
There's WAY more to consider. I just scraped the surface in an attempt to inspire you to justify your purchases.
Regards
Lewys