Who's into dividend stocks - DPChallenge Forums

Canon EF 100-400mm f/4.5-5.6L IS

03/25/2013 12:07:04 PM · #1

I have come across a dividend stock that appears to be a pretty good value. This will definately be a long term type of investment. The name of the company is Box Ships Inc. (TEU). This is a shipping company that deals with container ships. The company is registered in the Marshal Islands and has trade routes world wide. As this is the 1st shipping company I have ever considered investing in, I am curious if anyone is familiar with the company. Anyway I enjoy trading penny stocks ( anything under $10.00 / share). This one currently is trading just below $5.00 and pays a dividend of $.22 / qtr. (%18.3)...Anyway let me know your thoughts or if you have any suggestions post em here.

Canon EOS-5D Mark IV

03/25/2013 12:42:09 PM · #2

There is no shipping company in the world that makes money in the long term. Better keep your hands off.

Olympus 12-40mm f/2.8 Pro

03/25/2013 01:33:02 PM · #3

I would think that shipping companies would make lots of money. Everybody need to ship their products and most of it goes by big container ship.

Ann

Olympus OM-D E-M1

03/25/2013 02:36:02 PM · #4

My first thought is that any company that needs to pay that big of a dividend to get investors is a very scary company to invest in.

Regardless, for a young person who has an income and pays taxes, dividend stocks are not that great a deal, because you have to pay taxes on the dividend payments. You're better off buying and holding a company that doesn't pay dividends, because you can defer the taxes for years until you sell the stock.

Olympus 12-40mm f/2.8 Pro

03/25/2013 02:41:15 PM · #5

Ive got a fairly diverse portfolio. I have some regular stock and a couple dividend stocks. My div stocks automatically reinvest so I only pay taxes when I sell

Ann

Olympus OM-D E-M1

03/25/2013 02:47:10 PM · #6

Originally posted by cowboy221977:

I would think that shipping companies would make lots of money. Everybody need to ship their products and most of it goes by big container ship.

Shipping companies spend huge amounts of money getting your stuff from place to place. Besides having to own these crazy big, expensive ships, they also spend a *lot* on fuel. Think of what's happening with gas prices, and multiply it by eleventy billion.

The problem with the shipping industry is that their expenses are really high and their margins (the amount of money they make relative to what they spend) are really low. So the slightest change in the marketplace, such as fuel going up in price, a dockworkers strike at a major port, or economic troubles in one of the source or destination countries, can push a shipping company into bankruptcy in a hurry. If the shipping company goes bankrupt, you lose your entire investment.

Ann

Olympus OM-D E-M1

Olympus 12-40mm f/2.8 Pro

03/25/2013 02:47:41 PM · #7

Originally posted by cowboy221977:

Ive got a fairly diverse portfolio. I have some regular stock and a couple dividend stocks. My div stocks automatically reinvest so I only pay taxes when I sell

It doesn't work like that. If the company issues a dividend, you pay taxes on it, whether or not you reinvest.

Strikeslip

Canon EOS-5D

Canon EF 100-400mm f/4.5-5.6L IS

03/25/2013 03:00:49 PM · #8

Pork Bellies !

03/25/2013 03:04:25 PM · #9

Originally posted by Strikeslip:

Pork Bellies !

um 1 word.....No!!!

Garry

Canon EOS-7D

Canon EF 50mm f/1.8 II

03/25/2013 03:14:19 PM · #10

Originally posted by Strikeslip:

Pork Bellies !

wouldn't be much inventory to invest in, would there? ;)

sfalice

Canon PowerShot SX60 HS

03/25/2013 03:25:06 PM · #11

Originally posted by Ann:

Originally posted by cowboy221977:
Ive got a fairly diverse portfolio. I have some regular stock and a couple dividend stocks. My div stocks automatically reinvest so I only pay taxes when I sell

It doesn't work like that. If the company issues a dividend, you pay taxes on it, whether or not you reinvest.

Bingo!
You 'should' be getting 1099s or equivalent at the end of each year
from your brokerage firm, which also get reported to the IRS so they can check.

Nikon AF-S NIKKOR 24-70mm f/2.8G ED

03/25/2013 03:29:15 PM · #12

I do get 1099...It stated I had no taxable income. That being said I still owe uncle sam some money.

Neil

Fujifilm X-T30

03/25/2013 04:22:43 PM · #13

I don't think dividends are worthwhile when the stock keeps losing value...it's on a pretty straight trendline down!