THE PLAY OF THE DAY (FTR)

This is Dividend Week

The last play of the week is a contrarian play. You should not be invested in too many like this one as it is often describe as the one being unable to maintain it's dividend.

Well, it is really difficult to believe that a company can maintain a 10% + dividend BUT is that because revenues are not there or is it because share price has been hammered since 1 year?

If that share price was to get back to 6$ the dividend rate will get down to about 6% and that would make the dividend rate substainable ? Strange way of looking at it...

This is why i think this is a contrarian play as my impressions are that there are no reason why FTR could not see it's dividend maintained AND also get a good share appreciation.

The market is definitely highly competitive but with a book ratio under 1, there is room for appreciation also. Revenues are still good as is profit.

So opening a small position could be very profitable but this may not be at this time the stock to get in at 100%. So a 30-40% of your expected position could be a great start but be very careful. Good dividend yield does not mean a fantastic return and only 1 week drop in share price could wipe out a year of dividend.

Fo those who like this dividend week, here is a great site to learn more:

dividend.com

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 extreme caution.

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