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Strategies & Market Trends : Dividend investing for retirement

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To: E_K_S who wrote (33105)10/22/2020 2:51:54 PM
From: robert b furman3 Recommendations

Recommended By
E_K_S
Logain Ablar
miraje

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Hi E_K_S,

In a world of negative interest rates , these 8% plus dividend payers with free cashflow to easily pay the dividend just amaze me as to why their stock price is so depressed.

Granted a pandemic takes time to fade away.

Granted the fear and hype of Covid (I believe has been politicized and perhaps has extended the "shutin" and energy demand collapse).

There is a time out in the future that the pandemic will fade and demand renormalize even if at a reduced demand level.

From what I'm seeing in KMI, CVZ,and XOM, that allows a slower Capex out in the future with even stronger current cash flow resulting (THINK KMI).

If I'm correct about the politics of Covid delaying the restart, with the election passing, we're very close to normalization of energy demand (excepting jet fuel - which is perhaps the lowest margin product out there).

These are glaring examples of market mispricings and if reversion to the mean occurs - they'll provide a long and comfortable retirement!

Yet everyone wants to be on the momentum train - they too have a reversion to the mean coming.

Bob
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