Today's stock suggestion.
Posted: Tue Feb 07, 2023 10:35 amARR.
Currently at 6.09/sh.
Their Ex date is 2/14, div is .10 (paid monthly)
Currently at 6.09/sh.
Their Ex date is 2/14, div is .10 (paid monthly)
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.