No volatility is the friend of the trader, not investor. Massive volatility is not good for the dividend investor. And where did I say it wasn't a dividend stock so how does that make me wrong? Personally for my dividend stocks I prefer the share price action of MFG from 10 years ago to 2.5 years ago than from 2.5 years to now. But maybe that's just me.
What is over-paying for a dividend stream? Only hindsight tells you that. For a stable dividend stock, the dividend often drives the share price (equilibrium).
It's not a matter of whether MFG will be spewing dividends for years to come, it's low volatility that guarantees return on investment that interests dividend-inclined investors. Last couple of years it's been acting like a speculative stock.
Saying all that, if it can maintain the cents per share in dividends, its current shareprice looks like good value. A drop from $50 to $18 in a short time has to make you wonder what the general market doesn't know.
MFG Price at posting:
$19.46 Sentiment: None Disclosure: Held
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