by Recyclersteve » Tue Feb 07, 2023 9:29 pm
I consider this stock to be highly speculative, so if you are playing with true gambling money, then go ahead.
That said, there is no such thing as a truly safe 18.69% return. If so, this would quadruple quickly to bring the dividend down to a more rational 4.67%.
Keep in mind that the dividend (on the ex-dividend date) is literally taken out of the stock price. So there is no such thing as a free lunch. On January 13 and December 14 ten cent dividends were taken out of the stock price each day at the open.
Another issue is that the company lost $1.54 last year. Normally you want a company to have a dividend of 50% or less of money earned. ARR is literally draining their bank account to support the dividend- not good.
Also, insiders own less than 1% of the stock and short sellers (who want the stock to go down) control almost 11% of the stock.
On the positive side, it does trade over 5 million shares/day. So it should be fairly easy to buy/sell even 10-20k shares (shares, not dollars) without moving the stock much. Overall, I consider this stock to be an avoid. There are too many others with much better fundamentals.
Former stock broker w/ ~20 yrs. at one company. Spoke with 100k+ people and traded a lot (long, short, options, margin, extended hours, etc.).
NOTE: ANY stocks I discuss, no matter how compelling, carry risk- often
substantial. If not prepared to buy it multiple times in modest amounts without going overboard (assuming nothing really wrong with the company), you need to learn more about the market and managing risk. Also, please research covered calls (options) and selling short as well.