(@fz1006) on getquin

5Mon·

Hi there,

I only recently became aware of $MPCC (+3.07%) and bought my first shares today because the dividend is incredibly high. Now I'm asking myself why I shouldn't put all my cash into it with a 52% dividend.

Are there any risks apart from a price loss? And how does this enormous dividend come about?

05.04

MPC Container Ships

Bought x843.8 at €1.147

€968.00

35 Comments

Florian S.@FloShares

5Mon

1. high share price fluctuations before and after dividend distribution 2. if a company pays out 50% of its profits to shareholders, it has less capital available for the further development of its product, i.e. it does not remain marketable in the long term

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m-a-k@m-a-k

5Mon

I am always surprised at how many people have an opinion but have zero knowledge of the subject. Thanks for the clarification @Joris

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Kevin E.@KevinE

5Mon

What if no more dividends are paid out from now on? The dividend yield is always that of the last 12 months, not that of the future!

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René@Balatonbob

5Mon

I took a risk and am of course in the red with the portfolio. However, I have already received a dividend of EUR 68. Since then, however, the share price has risen again in the last week.
I think it remains risky, but I just wanted to see what happens.

In principle, I think that the container service will still be needed in Norway. After all, they distribute the containers from the big pots to the small ports. If you're not completely stupid, it shouldn't be extremely profitable.

But I didn't go in there with thousands of euros either. But I wouldn't be averse to investing more after a certain amount of time.

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Joris@Joris

5Mon

I'm sure you mean dividend yield and not yield. But I ask myself the question: what's in it for you? You buy for €1.147 and you receive the dividend of €0.59644. The dividend is deducted from the share price, i.e. the share price is €0.55056 and you have the dividend in your settlement account. Now you could reinvest the money and then collect (more) dividends again.
But the question arises when a company pays out 52% of its profits, what flows into the company? Are they still growing and is this reflected in the share price? The share price would have to rise by more than 100% to compensate for the dividend deduction. And the dividend is not safe, not with anyone.
I would prefer to invest in high-quality dividend growth stocks. You have price appreciation, dividends and dividend growth.

Or why do you think it's a no brainer to pour all your money into it? Completely irrational.

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McZed@McZed

5Mon

I can't give you a really qualitative answer, but for me personally the risk was too high.

Small cap, very volatile and a rather difficult market after the fat corona years, which is why the price is currently going down. I briefly considered getting in at 1.35 and am now glad I didn't. It's difficult to identify the turning point. As I've been wrong too often in the past and the share price continued to plummet after my purchase, I left it alone.

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~ Michael 💎 🏅@Michael-official

5Mon

I see a price of €0.50.
Buy orders are on the market.

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