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Strategies & Market Trends : Dividend investing for retirement
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geoffrey Wren
To: Kip S who wrote (32591)4/5/2020 11:52:11 AM
From: Rarebird1 Recommendation  Read Replies (2) of 34328
 
There are a few things you forgot to mention. Firstly, the corporate sector is more leveraged now than it has ever been. That is to say, corporate debt is at an all time high. That is why the Fed is looking to buy corporate debt. Secondly, many on this board do not primarily buy the JNJ's of the world, they go primarily for the stocks with high yields, the REITs, the BDCs, CEFS, the stocks that have gotten annihilated in this bear market. Allow me to name a few of the darlings around here: NRZ from 18 to 3. NEWT from 23 to 10. IRM from 34 to 22. And let's not forget the great PIMCO core holdings around here: PDI from 33 to 20. PCI from 26 to 15. What I want to know is what the hell happened? These were the stocks that were suppose to hold up the best in a downturn because of their high yields and yet they underperformed the market, in same cases, drastically so? And now you naively ask when the dividend cuts are coming? Wait for the conference calls over the next month or so when companies provide little to no guidance and poor earnings. Then they will tell you all about the dreaded dividend cuts to set off the next leg down. The JNJs of the world will certainly survive and thrive again. The NRZs may not.
And don't forget those companies that take the handout from the government can't buy back their own stocks for a year. I only mention this because buy backs were a big factor supporting the bull.
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