Dividend Sale in Aisle 4: Any Buyers?

by: Mark McQueen November 21, 2008 | about stocks: BMO / COSWF.PK / JPM / MFC / RY / SE / SPY / TORSF.PK    
Mark McQueen

Mark McQueen

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We are all so past being wowed by the market’s capacity to careen. There’s Torstar (TORSF.PK) with a 9.5% dividend. Canadian Oilsands (COSWF.PK) is now forecast to pay a 15.6% annual distribution. Bank of Montreal's (BMO) dividend yield is at 8.4%. Spectra Energy (SE) is north of 7%, and it runs a pipeline business. “Highly rated” JP Morgan (JPM) bounced above 6.5%. Even Royal Bank (RY) and Manulife (MFC) have inched up to ~5.6%.

All I keep thinking is: most people have neither the capital nor the conviction to enter at these levels. But, with the S&P 500 now 52% off its 2007 high, these dividend levels have arrived with all of the grace and nuance of a 24 pound newborn.

Having feared that the Dow Jones would head below 8,000 (see prior post “Globe & Mail coverage on stock market turmoil” October 6-08) back when it was at 10,230, I wish I felt as though 7,000 wasn’t just days away.

You know the old saying about “for every seller there is a buyer”? Why does it feel as though the people that buy on the one day just turn around and sell a few days later at a loss?

Damn those hedge funds!

Disclosure: None

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This article has 2 comments:

  •  
    Nov 22 03:15 PM
    will these divs hold?
    Reply | Link to Comment
  •  
    Nov 23 04:56 AM
    Mark, which companies do you think are a threat to cut dividends?

    Thanks
    Reply | Link to Comment
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