Thursday, January 26, 2017

Not cheap...but cheaper --- MAT & QCOM


Today I initiated a position in MAT and QCOM.





    • MAT:  100 shares @ $26.69 --- Yield  5.70%
    • QCOM:  45 shares @ $ 53.59 --- Yield  3.96%

Total capital invested is $5094.10 and the combined yield is 4.86%. These purchases will add $247.40 to my yearly dividends.

I owned shares of MAT back in 2014 and 2015 and quite frankly it is not for the faint of heart. I watched my shares bounce around between 19 and 34 during that period. This certainly could happen again. Speaking of volatile, QCOM is down around $20 over the last couple of months and traded between $40 and $70 in 2016. Great yielders, but speculative....no doubt about it.


Forward dividends are around $6725.

15 comments:

  1. These shares will bounce back though from small downfalls. They are both juggernauts in their own respective fields, so owning them now will prove to be a wise investment for years to come I believe.

    ReplyDelete
    Replies
    1. BHL,

      I agree. I needed some additional tech exposure and QCOM looks like a much cheaper alternative to INTC.

      MDP

      Delete
    2. It will be interesting to see how they go in a lawsuit against someone as big as Apple. Time will tell.

      Delete
  2. TROW almost looks attractive here.

    ReplyDelete
    Replies
    1. AG,

      I agree. It's almost at my cost basis of $66 and would love to add some more shares. I'm trying to keep my diversification in check, but will keep my eye on it.

      MDP

      Delete
  3. Hi,
    I like to read your blog. But I don`t understand your recent buy MAT because:

    "Mattel declared a $0.38-per-share quarterly dividend, flat compared to recent payments. With Mattel producing just $1.06 in non-GAAP EPS in 2016, the payout ratio continues to be well over 100%. The company will need to grow earnings substantially in 2017 and beyond in order to keep its dividend intact."

    Could you explain it?

    ReplyDelete
    Replies
    1. Anonymous,

      As I mentioned above, MAT is definitely more of a spec play than a DGI play. With that said, I believe it is undervalued and can turn the business around. It is a very small position in my portfolio and will stay that way.

      Thanks for the comments and question.

      MDP

      Delete
  4. Thanks for sharing your new picks. QCOM is certainly at an interesting point. I think the dividend is well-covered but could also be a bumpy ride due to questions about the licensing business model. Will be eager to see how it works out for you - cheers!

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    Replies
    1. Jay,

      i too am interested in seeing how things go! I have no problem being patient with both of these companies provided the dividends continue.

      MDP

      Delete
  5. MDP -

    Fellow shareholder in MAT - and yep, that big $6 spike down was massive, thinking they can get back to cutting more costs and keeping revenue on a slight up tick??

    -Lanny

    ReplyDelete
    Replies
    1. MAT,

      This company is a perpetual restructure play. LMAO With that said they have maintained the dividend and show signs of life from time to time. Pure speculation and will always be a small component within my portfolio.

      MDP

      Delete
  6. I bought 100 shares of QCOM one day prior to you. Nice job getting it on a dip. I haven't looked at MAT for a few years. I'll research that one and see if it's interesting for my portfolio. Thanks for sharing.

    ReplyDelete
    Replies
    1. IH,

      I saw that and you brought their yield to my attention. I have owned INTC before and it is obviously a much better company, but I do love "unloved" stocks and companies. :-)

      MDP

      Delete
  7. I think the IT stocks will get shaken/taken down by Donald Trump, as the immigration laws has a few IT companies running in with Donald. Aside from being broke, It's probably going to be a few more months before I have the capital to buy anything. But the yield at close to 4% is super attractive.

    ReplyDelete
    Replies
    1. Vivianne,

      Trump is a wildcard for a number of industries....and issues. The yield looks solid and I expect a rebound in the coming year.

      MDP

      Delete