Centurylink
Posted: August 11th, 2018, 1:53 am
I have read a number of posts which warn people off investing in shares that have dividend yields significantly greater than the market average. I agree that such a yield should be reason for caution but of course if everyone ignores it then it will leave opportunity for the brave.
I purchased Centurylink http://ir.centurylink.com/ on January 22 2018 at an all in cost of 17.31. At that time it was yielding 12.48%. I increased my position by 25% on July 20 at 19.30 and a yield of 11.19%. It closed Friday at 21.38. Of course there is plenty of time for this to go horribly wrong but at this point (taking into account the two dividends received after losing 30% witholding tax) I am up 24.1%. Not too bad in less than 7 months. Despite the good run of late the stock yields 10.10%. This is a $23.3BN market cap company not some minnow. CenturyLink was the largest holding in Longleaf Partners, a well known value investor, Partners Fund as of their last declaration as at June 30. Then (priced below 19) it was 10% of the fund. It was also the largest holding being 8.7% of their Global fund which I am also invested in. Presumably it is a higher percentage now unless they have been trimming their position.
After two very strong years my returns have been somewhat meagre in 2018. I am up a fraction. CenturyLink is one of my biggest positions but unfortunately my biggest position after two strong years is down this year which hasn't helped overall returns. So I post this to cheer myself up with at least one success whilst also hoping to provide some encouragement to those who are willing to go where others might not.
Pendrainllwyn
I purchased Centurylink http://ir.centurylink.com/ on January 22 2018 at an all in cost of 17.31. At that time it was yielding 12.48%. I increased my position by 25% on July 20 at 19.30 and a yield of 11.19%. It closed Friday at 21.38. Of course there is plenty of time for this to go horribly wrong but at this point (taking into account the two dividends received after losing 30% witholding tax) I am up 24.1%. Not too bad in less than 7 months. Despite the good run of late the stock yields 10.10%. This is a $23.3BN market cap company not some minnow. CenturyLink was the largest holding in Longleaf Partners, a well known value investor, Partners Fund as of their last declaration as at June 30. Then (priced below 19) it was 10% of the fund. It was also the largest holding being 8.7% of their Global fund which I am also invested in. Presumably it is a higher percentage now unless they have been trimming their position.
After two very strong years my returns have been somewhat meagre in 2018. I am up a fraction. CenturyLink is one of my biggest positions but unfortunately my biggest position after two strong years is down this year which hasn't helped overall returns. So I post this to cheer myself up with at least one success whilst also hoping to provide some encouragement to those who are willing to go where others might not.
Pendrainllwyn