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Here's the article:
https://www.fool.co.uk/2022/05/08/3-dirt-cheap-9-dividend-stocks-to-buy-today/
How can you discuss divi stocks without mentioning payout ration?! Shocking really...
I'm back in here with a 4% position and looking to increase it. 10% divi is just too good to miss! IMO it should be stable even in a recession, as the payout ratio is only 55%. Saw a Motley Fool article that was suggesting Persimmon instead probably cause their divi is 11%. But I don't see how that's sustainable with a payout ratio of 96% right now. Any down turn and they'll have to cut it, probably in half. The share price will then tank 10% or more. Not that it can't happen with Wimps but less likely IMO. I feel safer here
Make that 10%
I fully expect a bear market now, especially after the yield curve inverted. Not sure about the timeline, as I said my market timing is useless. But I'd expect the S&P to go down another 5-10% over the next 1 year. Probably even lower for the Nasdaq. But the way things are going it could happen this week haha.
As a long term investor a prolonged bear market is better so that I can buy cheap stocks, including ASOS. That means higher returns eventually. On the other hand it's been a painful 1 year even without the recent carnage. I could use a bit of a break.
haha Not sure I have any better luck than you anon. As soon as I buy and the share dips 6%.
Another day, another bloodbath. Bring your rubber duckie!
I'm terrible at timing the market so if I see cheap stocks I just buy them. Currently there are so many on sale that I don't even know where to start. Unfortunately, the current downtrend has been going on for so long that I'm pretty much out of cash. So I'll have to wait for my next pay check. Will probably scoop up few ASOS shares.
Most investors seem to be fearful so it's time to be greedy!
I think the main positive for me is that everyone is so negative. Not just with ASOS but the market in general, especially the so called pandemic shares and tech. Loads of them are down 70-80%. Clear buy signal.
I wouldn't touch the so called "safe" stocks like Coca Cola though. No growth at PE of 28? Not for me, sorry Warren!
anon I remember we were chatting before. I also sold when we got to the 500 levels even though my initial plan was to hold there long term. So I did alright here, though you made a profit as well.
As of today, I'm back with a holding in HOTC. Obviously a small one considering the liquidity here. But hoping to build it up over the next few weeks, months if the prices stay in the 300s.
All fair points anon and there will definitely be some negative consequences for HOTC due to the cost of living crisis. However, I'd argue most of their clients are probably well off considering that it's a premium product. If the heating bill increased from 50 quid to 80 per month does that make a big difference to a middle class person? I think most won't even notice it. Same with price of bread, fuel, etc. Unfortunately, the current higher prices will probably hit the poorest the hardest which is bad for our society. However, from HOTC point of view, that's probably not their target group anyway.
Absolutely bonkers this. I remember when 200 seemed crazy cheap. Oh well, I'm down so much I can't even do the math! No choice but to wait for this one to hopefully recover or get taken over. At least it's very unlikely to go to zero. Hard to go bankrupt when you have no debt as Peter Lynch says.
Pretty good price here, shame I don't have any dry powder left!
As someone who's averaged down and suffered here from the 4500 levels all the way down to 1400 I'm not sure I share the optimism. If 1400 fails, what's the next support level? 1200? And then about 1000 I think was the covid bottom. So easily 15-30% downside from here before we bottom.
Also I don't see many positive catalysts right now tbh, cost of living crisis, persistent supply chain issues, war, etc. Few positives other than announcing a new CEO perhaps. Btw what's up with that?! We were expecting the announcement after Xmas and we're already in Q2 and still nothing. How hard is it to hire a CEO?!
Announcing a new CEO could be a short term catalyst here.
Also I've been out few times recently around Canada Water/Greenwich and they have these daytime raves in the area. It's packed with youngsters smashed at 11 am going to the party sporting ASOS/Boohoo type of attire. In my (sleepy) local area in North London I see a ton of ASOS and Pretty Little Thing parcels as well. People are buying clothes for going out, enjoying the nice weather spell we've had recently, etc. Folks will be switching off the radiators and switching on the ASOS app.
I think this investment will come good. I've also been getting a bit annoyed with ASOS and BOO so I'm moving them into my ISA so I don't have to look at them. Putting them at the back of the drawer. Will check them monthly or quarterly (if I have the discipline).
I think what I got wrong with this investment as someone who follows Buffet and also why I think it dropped so much is that the moat isn't that strong. When prices rise (inflation, supply chain, etc.) the likes of ASOS and BOO (and most retailers really) don't have the pricing power to just increase the prices and pass on the costs to consumers. Compare this to Apple or Amazon who can just increase the price of an iPhone or the Prime subscription and people will still pay it without even thinking.
Comparing ASOS to Amazon, I think it does have the scaled economies shared aspect of it, i.e. when things are going well, business is growing, it becomes cheaper to do business, ASOS like Amazon lowers prices for consumers, so even more consumers join, and it's a virtuous circle. So ASOS does have a moat, just not as strong as Amazon's and there's lots of competition in fashion retail.
IMO that's why things are tough now, hell even Amazon's share price hasn't gone anywhere for more than a year now. But once these current issues go away ASOS will be fine, fundamentals are still strong and the share price will follow.