Is this 12% US dividend stock too good to be true?

[delon]

Nice detective work delon. It’s actually a friend of mine. Trying to see if my investment thesis holds.

Good luck with your investment thesis

Personally I'm a market index guy and it's served me very well over the last 15-20 years. And with a future focus it allows you to catch whatever the next big wave happens to be (currently AI buildout, quantum looming, then the next one and the next one etc) - and the inevitable creative destruction cycles - without having to pick or even know anything at all about them.

Being under 40 you should be prioritizing growth rather than yield given you have a long road in front of you

Set and forget (adding when able), go live your life, and come back in a decade having reaped the rewards

 

[BB]

Baby clothes? -

https://www.crowncrafts.com/ .

That's probably not going to grow, and is risk heavy. All those accounts will move to some other private label if it can be done pennies cheaper.

[jude2]

Not all of us on this forum sit in front of 4 monitors day trading, have a Bloomberg Terminal, or understand how to read a company’s balance sheet.

Should we buy this stock? Or is it too good to be true?

No too good to be true

[Rambone]

Good luck with your investment thesis

Personally I'm a market index guy and it's served me very well over the last 15-20 years. And with a future focus it allows you to catch whatever the next big wave happens to be (currently AI buildout, quantum looming, then the next one and the next one etc) - and the inevitable creative destruction cycles - without having to pick or even know anything at all about them.

Being under 40 you should be prioritizing growth rather than yield given you have a long road in front of you

Set and forget (adding when able), go live your life, and come back in a decade having reaped the rewards

Beautiful advice by a beautiful man (nh)

The retirement strategy that makes the most sense to me is the 3 bucket strategy. I would stay heavily invested in S&P and Nasdaq ETFs and then have my IRAs in some more conservative dividend ETFs (I wouldn’t do this until Im in my 50s) and finally have a 3 years worth of cash on the sidelines in a high yield savings account that I can tap into in case of a major sell off. Tinkering around with trading, options, chart analysis and balance sheets is a waste of time unless you want a hobby or pretend to be like Warren Buffett but without the money or insider trading tips. Trading is basically just gambling for a dopamine hit.

[Gargamel]

Beautiful advice by a beautiful man (nh)

The retirement strategy that makes the most sense to me is the 3 bucket strategy. I would stay heavily invested in S&P and Nasdaq ETFs and then have my IRAs in some more conservative dividend ETFs (I wouldn’t do this until Im in my 50s) and finally have a 3 years worth of cash on the sidelines in a high yield savings account that I can tap into in case of a major sell off. Tinkering around with trading, options, chart analysis and balance sheets is a waste of time unless you want a hobby or pretend to be like Warren Buffett but without the money or insider trading tips. Trading is basically just gambling for a dopamine hit.

These are fair points but this stock Crown Crafts has little to do with trading. It's an investment for the long term. The average stock market return over the last decades on average has been roughly 9%. So when you buy Crown Crafts at 12% dividend yield and the share price goes nowhere you can still generate market beating returns by just receiving the dividend.

[NaturalWonder83]

No too good to be true

Thank you.

[NaturalWonder83]

These are fair points but this stock Crown Crafts has little to do with trading. It's an investment for the long term. The average stock market return over the last decades on average has been roughly 9%. So when you buy Crown Crafts at 12% dividend yield and the share price goes nowhere you can still generate market beating returns by just receiving the dividend.

Most of us have no idea what you're talking about. It's only you and a few others on here that understand stock market lingo and investing rules. I don't understand why you're asking for opinions on here. Just buy some shares and see what happens. Past earnings are not indicative of future results.

[Rambone]

These are fair points but this stock Crown Crafts has little to do with trading. It's an investment for the long term. The average stock market return over the last decades on average has been roughly 9%. So when you buy Crown Crafts at 12% dividend yield and the share price goes nowhere you can still generate market beating returns by just receiving the dividend.

But Crown Crafts’ long-term performance is softer than baby shit. What’s 12% of zero?

[GymnJuice]

Beautiful advice by a beautiful man (nh)

The retirement strategy that makes the most sense to me is the 3 bucket strategy. I would stay heavily invested in S&P and Nasdaq ETFs and then have my IRAs in some more conservative dividend ETFs (I wouldn’t do this until Im in my 50s) and finally have a 3 years worth of cash on the sidelines in a high yield savings account that I can tap into in case of a major sell off. Tinkering around with trading, options, chart analysis and balance sheets is a waste of time unless you want a hobby or pretend to be like Warren Buffett but without the money or insider trading tips. Trading is basically just gambling for a dopamine hit.

Agree. I do funds for US stocks, international stocks, and bonds. Maximize all 401k and HSA contributions. I do the bonds in the tax deferred accounts.

[Brenda Steunbeer]

These are fair points but this stock Crown Crafts has little to do with trading. It's an investment for the long term. The average stock market return over the last decades on average has been roughly 9%. So when you buy Crown Crafts at 12% dividend yield and the share price goes nowhere you can still generate market beating returns by just receiving the dividend.

Dividend is a nice extra, a stock price that goes up is way more important, but I invest for the short term. So if I misjudge the stock performance it's a nice sort of plan B
Due to a kind of big bank unofficial cartel I only get 2% interest. So in that respect dividends from a stable and predictable company can be less bad than a savings account

Also depends on where you live with regard to taxes on dividends received.

[IroNat]

Take a flyer on it with money you can afford to lose.

[mphgrove]

If it’s income you’re looking for:

Another option is a low quality bond fund. For example, FTF pays about 12% and, with bonds, price fluctuation is way less than with stocks, although it definitely occurs (interest rates, Fed, etc.). The way I look at it, ok if some of the bonds inside the fund default, well then the interest rate falls to (say) 9 or 10%. This works if you are holding on for the dividend income - either to use or for cash buildup for new investments - and don’t care too much about associated price fluctuation.

[Rambone]

 

[Humble Narcissist]

Buy real estate

Terrible idea now. 10 years ago, yes.

[Rambone]

Terrible idea now. 10 years ago, yes.

Forgive my friend. He’s on retardtrutide

[Humble Narcissist]

Forgive my friend. He’s on retardtrutide