Also, considering how these stocks get hammered every time Obama, Geithner, etc. open their mouths, do you expect the stock to have bottomed out now, and do you think they will continue to pay quarterly dividends of $1.70 (ish), or do you think they will be forced to cut that back?
Thanks.
LOL! sorry, yes you are right. 10 shares it is. Stocks haven’t gotten that hammered since last quarter and USB’s CEO is refusing to take anymore Fed money. From looking at their financial statements they look pretty good. That being said if BoA and CITI tumble then that could affect other banks stock price due to lack of confidence in that sector, but that would just mean they are cheaper to buy.
As to the dividend the yield is just under 14%, so if their revenue falls anymore this year then yes they might shave it some, but I think it would still be over a dollar a share. I am going to wait until after the 1st quarter ‘09 reports just to see how things are going. If you are investing based on dividend stocks then really you shouldn’t be concerned about the stock price other than the effect it has on your ability to accumulate more shares. What is important is number of shares and dividend disbursed. In the beginning you reinvest the dividends to accumulate more shares.
Has things bottomed out? I have know idea, maybe. If not does it really matter? I wouldn’t be investing money that I couldn’t afford to live without, meaning that I would be saving/investing other money in more conservative means.
This is my opinion and please take it with a grain a salt as I am by no means an expert. Do your own research and learn how to read the financial statements that are public information (Yahoo Finance and MSN Money Central are good places to go).