Is one stock enough?
So my plan was to buy 1 stocks that pay dividend monthly, called SUNOCO "SUN" they pay $ 0.825 per share, the stock itself cost $ 30 so if I buy 4000 shares and would make at least make $3,300 monthly. Do you guys think it's a good ideas or a risk?
- 1 month ago
Buy stock according to your budget and plan you have
- EvaLv 41 month ago
That's a lot of money to tie up in a single stock. You might want to check again. It would appear that it pays dividends quarterly, not monthly. The stock is also somewhat volatile. Look at a 5 and 10 year chart.
- SteveLv 61 month ago
Ive never thought that buying a stock for the dividend is a good idea. Ask yourself if youd still buy the stock if it does not offer a dividend. Its revenue is not expected to greatly increase in 2020 and there is expected to be a glut of oil again in 2020. First of all, its a bad idea to go all in on a single stock and the prospects for this companies future doesnt look so bright because of what people posted here and the info about the company not being so great.
- Grandpa SharkLv 61 month ago
I held SUNOCO before it became a Limited Partnership, One reason I got out is because of this change. SUN pays quarterly so If you want something that pays monthly you might want to look at Realty Income Corporation (O)
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- StephenWeinsteinLv 71 month ago
It's a risk. The price of any stock can go down.
Also, their main business is gasoline distribution, so if most cars get replaced by electric cars or even hybrids, then profits, and dividends, will drop dramatically.
- curtisports2Lv 71 month ago
No company pays a monthly dividend. Dividends are paid four times a year. SUN is paying $3.30 per share per year. If you have $120,000 to invest in that one stock, you would earn $13,200 in dividends in one year. That's an 11% yield. That's a great yield. But there is more risk involved. Sunoco has paid the same quarterly dividend since the 2nd quarter of 2016. That's a good sign, but no guarantee that dividend will be maintained. Sunoco has traded over the last 52 weeks in a range from $24 to $34. If it went down to $24, your dividend yield would rise but the value of the stock would fall by $24,000, wiping out almost two years worth of dividends. Of course, if you just hold the stock, you aren't losing anything.
- A.J.Lv 71 month ago
You should be careful. I'm a long term investor and this REIT type limited partnership has risk. You can lose a lot of money.
The dividends are $0.825 now, per share per quarter as four times a year for almost an 11% yield, taxable income. Price closed at $30.68/share.
"Wholesale distribution is our key focus. In addition to our premier Sunoco fuel brand, we distribute more than 10 fuel brands to approximately 10,000 convenience stores across the United States."
As a limited partnership, you get special tax forms for income tax filing.
They have $3 billion in debt, and a negative tangible book value.
Their distribution is based on cash flow, not earnings, and is subject to change up or down. As a business, they lost money in 2016 and 2018.
It looks interesting, but I would not put everything in this.
"that pay dividend monthly" - It's quarterly
stock cost $ 30 > $30.68 at close for the week.
4000 shares cost $122,720
$0.826 = $3304 in February
$13216/year if they can.
- JudyLv 72 months ago
Do you have the $120,000 plus commission to buy it? If you don't, it doesn't matter. "Having all your eggs in one basket" is never a real good idea. And btw you'll get those dividends QUARTERLY, not monthly.
- YYYZZ 2Lv 72 months ago
The return on investment is usually stated in cents, not $ Thus, 0.825 cents per share. Giving you an income of $ 33. paid YEARLY. No company pays monthly dividends......much too expensive.
- A HunchLv 72 months ago
Sunoco shares are selling for $30.68 per share
4000 shares would cost you $122720
Sunoco's most recent dividend (11/4/2019) was annualized at $3.30 per share.
The stock pays the dividend quarterly. The dividend paid on 11/4/2019 is 1/4th the annualized rate or $.826 per share.
-If you had owned 4000 shares, you would have been paid 4000x.826 = $3304
** Remember, you had to pay $122720 to get these shares.