Based on the market close today, JP Morgan (JPM)common stock is yielding 6.7%, Altria (MO) is at 8%, Bank of America is at 11.20% and Citi (C) is basically zero dividend. Which stock or any would you buy? Believe it or not, there are many stocks where the dividend is safe, except in the case of a depression. One of those is Altria (MO), the tobacco company. In the financial arena, JPM, BAC, etc. will definitely be cutting or eliminating their dividends as the next six months unfold. Citi has a government backstop to losses and no dividend. Which would you rather own? How about Exxon (XOM) or Apple (AAPL)? This coming Thanksgiving weekend is a good time to evaluate all of your favorite stocks to determine what to do next. There is no doubt in my mind that 2009 will be a very weak year for earnings. Many dividends will be eliminated but many stocks will go up.
Random thoughts....I bet you cannot count how many household name stocks are under $10/share....take a look in the Wall Street Journal and you will not believe the companies that are trading under $20/share....When will single family real estate stop going down? ....
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1 comment:
People want things to get better so badly...especially now with the holiday season upon us. It's clear that the financial companies (worldwide) need to get a foothold on their balance sheets (government help or NOT). There's no question that the 'borrowing of money' is no longer as easy as it once was...It's time to "think twice". I agree though...Exxon Mobil is CASH RICH and we will all need energy/oil. Winter is coming and I don't want my wallet to feel any more chills than it already has... I love your blog. ;)
Hugs, M
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