What would happen if they REDUCE or STOP divvies for this "great divvy-generating stock"
No way will STOP ever happen. Maybe a REDUCE sometime but even then 25/30 isn’t too bad.
If HLG ever stopped paying a divie that signals the market as really munted ...munted big time with many punters (sorry investors) crying into their milk.....and of course that would be a great time to buy.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Anyone who has actually invested over a reasonable length of time knows that dividends for a particular company can stop at any moment. There's no such thing as a sure bet. Over 32 years I've seen this happen for a number of great companies. It doesn't necessarily mean the whole market is "munted" either. The market is doing ok at the moment, Sear's investors not so much so.
I have no HLG by the way or any knowledge of the company. I just shudder when I read these statements.
You've got to admire the fact that HLG is the oldest company on the NZX and has a nice clean balance sheet and a superb long term track record as a great and reliable dividend payer. That's got to be worth something in terms of a PE premium compared to some other Johnny's come lately companies like KMD that promise strong growth and look set to deliver negative eps growth.
I'm just not so sure this is the ideal time to be holding them as something a bit different appears to be going on with retail at the moment. Maybe its just that last summer was an absolute belter in terms of weather all summer long and December 2018 was a flop, (better so far this month).
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Anyone who has actually invested over a reasonable length of time knows that dividends for a particular company can stop at any moment. There's no such thing as a sure bet. Over 32 years I've seen this happen for a number of great companies. It doesn't necessarily mean the whole market is "munted" either. The market is doing ok at the moment, Sear's investors not so much so.
I have no HLG by the way or any knowledge of the company. I just shudder when I read these statements.
Yep bobdn ....no such thing as a sure bet in the markets....in my 50 years ‘investing’ I’ve seen many catastrophes ....maybe HLG not paying a dividend could be another one.
I am suitably rebuked
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
What would happen if they REDUCE or STOP divvies for this "great divvy-generating stock"
Count me suitably rebuked too!
It's a good point dreamcatcher and one I must admit I hadn't thought of - well not in relation to HLG anyway. "old"-tech I may be, but still young and inexperienced at investing. So thanks for giving me something else to consider.
Anyone who has actually invested over a reasonable length of time knows that dividends for a particular company can stop at any moment. There's no such thing as a sure bet. Over 32 years I've seen this happen for a number of great companies. It doesn't necessarily mean the whole market is "munted" either. The market is doing ok at the moment, Sear's investors not so much so.
I have no HLG by the way or any knowledge of the company. I just shudder when I read these statements.
Yes but how many of those great companies you speak of had no debt?
My two recent examples are Chorus (of course) and this little company called BP a few years back because of a monster oil spill. The point is that stuff happens.
My two recent examples are Chorus (of course) and this little company called BP a few years back because of a monster oil spill. The point is that stuff happens.
Since I've retired my risk appetite has subsided.
FBU another recent one. BUT,as couta1 correctly points out, HLG is somewhat on its own as it has no debt and is a very old and established company run by very experienced people in the industry. They also seem to be well on top of trend changes in clothing as well as changes in shopping habits such as the move to online shopping. I can not imagine the dividend flow stopping anytime soon and am happy to hold
Last edited by iceman; 20-01-2019 at 10:33 PM.
Reason: Added sentence
Originally Posted by oldtech
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