Many dividend stock investors take on incredible risk via so-called yield traps. They buy dividend stocks that offer huge starting yields, only to face #dividend cuts and capital losses in the future. Today's video analyzes a stock that I believe is a current yield trap, Macy's (M). I'm excited to share my fundamental #stock #analysis insights, and some qualitative lessons too. By popular subscriber request, it's time for another long video.
Timestamps:
0:00 What is a dividend yield trap? I think Macy's (M) is a dividend yield trap.
2:00 I bought some more Honeywell (HON) today. This is not a yield trap.
3:03 Let's look at Apple (AAPL). This is not a yield trap.
5:17 Macy's (M) fundamental dividend stock analysis.
6:25 The forward PE is only 5.5!
7:09 The dividend yield is almost 10%!
8:06 The real assets are significantly lower than the assets they are carrying on the balance sheet.
8:26 The net margins are low (and getting lower).
10:54 Let's look at the last five years of selected financial data for this dividend stock. Everything is going down.
13:15 I really like that this stock owns a lot of real estate. However, they are selling off their real estate assets.
16:22 Let's analyze Macy's store count. If there is any value at Macy’s, I see it in their owned real estate (and ground leased real estate too).
18:44 Qualitative dividend stock analysis – What I think about Macy's physical stores.
21:20 Balance sheet analysis – assets are flat out wrong, in my opinion.
23:42 Here's how I calculate Macy's real assets.
26:46 There are different ways to invest, it's important to find the strategy that is right for you.
28:06 Let’s look at their Q2 earnings report.
32:02 Pros and cons with this dividend stock. Let's start with the pros.
33:12 Let's look at the cons.
35:00 Dividend investing lessons and takeaways.
37:19 Bonus content: Here's how I think strategically about investing vs. spending. For me, I see very little risk deploying money in high quality dividend stocks.
43:40 Conclusion – Disclosure and Disclaimer
Want to support PPC Ian while wearing your passion for dividends? I now offer custom PPC Ian dividend investing merch: [ Ссылка ]
Here's my Honeywell dividend stock analysis video: [ Ссылка ]
Here are the 5 dividend stocks I'm buying for the rest of the year: [ Ссылка ]
Here's my complete dividend stock portfolio: [ Ссылка ]
DISCLOSURE: I am long Apple (AAPL), Honeywell (HON), The Home Depot (HD), Walmart (WMT), Procter & Gamble (PG), and Starbucks (SBUX). I own these stocks in my stock portfolio.
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Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.
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