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High yields with closed end funds -- too good to be true?

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56 minutes ago, beachproperty said:

Actually the........... long term Debt/Total capital is 46.55% for T.

 

Verizon's is a lot higher at 62.79%

 

Net Operating Cash Flow for T is 44.99 BILLION versus 10.39 billion for MO

 

MO long term debt/ Total capital is 78.99%

 

I still like the numbers for T versus VZ or MO

 

Numbers and percentages courtesy of Seeking Alpha

Equity Summary Scores:. 4.1 and 8.9.  Mo just reported 1.19 EPS for q3...They got burned by the vaping craze, but are recovering well.  It is good to have some telecom exposure..so perhaps FCOM or FIVG, an etf focussed on 5G. PM isn't looking bad either.  Indonesia might be worth more than the US Market.

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  • OK i have attached the fact sheet from the fund. Its clear that the reason the company has such a high dividend yield is that it has a policy of paying out 10% of its net assets every year, irrespecti

  • 1FinickyOne
    1FinickyOne

    As a lifetime investor, no reward comes w/o risk... pretty much simple as that... 

  • where are those 10% dividends coming from?  the stocks they hold paying 2%? or are they giving your invested money back to you and calling it a free gift?   with the Gabelli closed-end,

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8 minutes ago, moontang said:

Equity Summary Scores:. 4.1 and 8.9.  Mo just reported 1.19 EPS for q3...They got burned by the vaping craze, but are recovering well.  It is good to have some telecom exposure..so perhaps FCOM or FIVG, an etf focussed on 5G. PM isn't looking bad either.  Indonesia might be worth more than the US Market.

Equity Summary Scores by who??   And what are they based on?

3 minutes ago, beachproperty said:

Equity Summary Scores by who??   And what are they based on?

It's one of the tools on Fidelity.  I can give a better explanation later.  It's beer O'Clock, and Heineken is calling.

2 minutes ago, moontang said:

It's one of the tools on Fidelity.  I can give a better explanation later.  It's beer O'Clock, and Heineken is calling.

That's OK ....I have stocks at Fidelity and now I understand. I really don't use that as my main guide.

24 minutes ago, moontang said:

Equity Summary Scores:. 4.1 and 8.9.  Mo just reported 1.19 EPS for q3...They got burned by the vaping craze, but are recovering well.  It is good to have some telecom exposure..so perhaps FCOM or FIVG, an etf focussed on 5G. PM isn't looking bad either.  Indonesia might be worth more than the US Market.

Funny thing is that T.D Ameritrade uses a Smart Score system (Tip Ranks) And T is a 10 and MO is a 5.  Go figure .....different systems different scores ....That's why doing your own research is important.

3 hours ago, wordchild said:

it might be good if you buy it now though, maybe just maybe!

maybe is the exact answer... at the current price, there is always 50% of the money in favor of up and 50% down.. that is called market value... short term, a <deleted> shoot. 

8 hours ago, beachproperty said:

It's call "dollar cost averaging". AT&T is a solid stock and I'm in it for the long term (at least as long as I live)

Yes. dollar cost averaging is a good technique if you are young... but I might add that diversity is important too... even the biggest and best companies making buggy whips ran into problems... 

 

And when you get as old as I am, or before, I hope you enjoy some of the money yourself, while still alive... 

I pay little attention to yield and dividend. The bulk of my investment is in index funds. Total return has be impressive especially in the last 10 years .

See chart below: Vanguard S&P 500 Index, Vanguard Total Market Index, AT&T and GAB. Assuming dividend reinvested.

GAB is not bad but did't beat the index funds. Good luck with AT&T.

 

Screenshot 2020-10-31 061910.jpg

I agree with the buggy whip comments.  I did well with the Verizon preferred shares..VZA.  Will be interesting to see what 5g does to the broadband cartel.  And Musk's Starling might make things interesting, too.  Sears, Kodak, Bethlehem Steel...some great hold forever (former) DOW components.

  • 1 month later...
On 10/30/2020 at 5:17 PM, beachproperty said:

Actually the........... long term Debt/Total capital is 46.55% for T.

 

Verizon's is a lot higher at 62.79%

 

Net Operating Cash Flow for T is 44.99 BILLION versus 10.39 billion for MO

 

MO long term debt/ Total capital is 78.99%

 

I still like the numbers for T versus VZ or MO

 

Numbers and percentages courtesy of Seeking Alpha

30 day chart since you were touting T over MO.... MO has done close to twice as good. 

Screenshot_20201202-222355.png

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