I was going over the futility of all investments in the grand scheme of things, and thought about how dividends would justify holding onto a position despite turmoil. I have been reading too much history, and was thinking about Justinian re-conquering some of the old Roman provinces. I think of Rome dreaming of rejoining the Roman Empire. If they were anything like us some people thought it was time to take a risk and try and make some money. Sadly it was not to be, but I am projecting my own values. Those people might not have appreciated "reconquest."
I was looking at it in the terms of our unpreparedness for cataclysms. The stock market has been on quite a high lately. The question is will it continue making new highs or will it make portfolios that are long look like a scene inspired by Ozymandias. High dividends from strong and stable companies are a great choice. When the market collapses the share price might collapse, but you will have reaped the rewards of dividends.
1. A Large Intermodal Container Company
I am already a fan of Cai International in the intermodal container industry, but TAL International Group, Inc. (NYSE:TAL) is a far larger company with a dividend yield of 5.7%. You can go around finding even higher yields, but TAL has the benefit of not being a partnership, which can have some sticky tax issues depending on the account you use. I have been through that problem before, and while it's not that big a deal I would rather just avoid the headache.
Some good news on TAL is that it just beat on earnings for its most recent quarter, but revenue growth did not beat. TAL might still be able to grow revenue as global shipping increases. People looking for fantastic growth from the company, might be expecting too much this early. While you are waiting, TAL International Group, Inc. (NYSE:TAL) has some money to give you. I do not want to continue blathering on about these companies, because I am not writing a book. For now, a taste will have to do.
2. A Very Large Wireless Carrier
When it comes to AT&T Inc. (NYSE:T), I have suggested that I would wait on it right now. I still hold that belief, but with a dividend that is also over 5% it presents a serious wound to my plan of sitting on my hands. That dividend is serious money, and AT&T is not a horrible company. Everyone has a cell phone at this point and companies are just picking off customers from one another. Customers range from extremely flaky to extremely loyal, but there is not too much to differentiate the different carriers. Sprint at least has its unlimited data, even if it is a bit slower in busy areas.
Verizon and AT&T Inc. (NYSE:T) are not that different, at least in the region I dwell. Most problems people have are subjective and you will find numerous contradictions between people's testimonies. This kind of personal analysis might not mesh well with the fancy facade that the finance industry cloaks itself in sometimes, but I have a dislike of that veneer anyway. Having gone to law school, I am familiar with the superficial gloss used to convey trustworthiness and intelligence despite what comes out of one's mouth. The Fool tends to be different.