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mercredi 27 juin 2012

PLAY OF THE DAY CHR.B (Chorus Aviation)

THIS IS DIVIDEND WEEK

In regard of dividend, this is one of my favorite with a juicy 18% dividend (at actual price).

At this price, it is a bit hazardous as i prefer a share price around 3$ but even then 18% dividend is a great deal.

Important to know also that today's drop is due to the fact that CHR.B is ex-dividend today for 15 cents.
The real question is: is this susbtainable??? I may suspect that CHR.B could cut the dividend in case of problem but even if it was cut in half, that would still mean a 9% return and still be very good.

The problem with those very high yield companies is that they tend to be very volatile and can wipe out 2-3 years dividend in a day. But this one has nothing to do with Yellow Media. Not the same market and not the same number of competitors.

The airline sector is not an easy one and not too many people have made money there over the year and this is why my strategy is the following for a stock like that:

I will buy about 50% of my position at actual level and will add more if it dips between 5-10% and a lot more if the dip is over 10% and that their dividend policy is unchanged.

There will be a lot more to discuss about Chorus Aviation but that is what you should discover by yourself (due diligence).

As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with caution.

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