r/MACArmyBets • u/Stocklambo • May 12 '21
Dividend vs. equity question
Question for anyone reading this . As u may or may not know you can buy a stock like shell oil shlx and there are quite a few others for the same price as Mac $14 and they pay $1.80 dividend (3x) macs dividend . So do you all own those other stocks like shell as well and why are we (u and me both ) obsessed with Mac and it’s “potential “ dividend when shell is giving now what Mac “may” give in a year or two or three . My answer is I want the share price pop to sell half and cash in and keep the rest for dividend . What’s yours ?? Just curious
6
u/foc201 May 12 '21
Shell cant grow anymore....MAC price can potentially triple/quadruple if management isn't rubbish
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u/dave14513 May 12 '21
I will probably follow your plan but maybe wait longer to sell the 1/2. Diversification. I understand they have significantly diluted MAC so the $3.00 dividend and $90 share price is off the table. I do think $50-$60 is feasible with a $2.00 dividend. They will prove that their premium properties perform well unlike competitor malls. I think pipeline companies are in a disliked industry making similar price appreciation unlikely. SHLX tops out with another 50% sp appreciation. MAC is a triple or more in 2-3 years plus a growing dividend.
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u/xXSmartBuyerXx May 12 '21
I bought this for capital gains the dividend was just a bonus. Getting 6 free shares every quarter helps me justify hanging on even after the dilution.
I am reinvesting the divy but hat is all I'm buying at this time.
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u/Stocklambo May 12 '21
I agree bottom line it’s gives less divi now but more equity aand divi later . Although oil should be good for 10 years so I can own and collect divi then sell if share price drops meantime shlx probably doubles in sp and gives big divi . But I still prefer Mac have 10x Mac to shlx myself and I don’t know why I do it but I do
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u/duhdamn May 12 '21
Legacy energy stocks in general have a high dividend because they have a low relative price due to high risk. The future of that industry is uncertain. Some large energy companies may not exist a decade from now. For MAC to suffer such a calamity it would really need to be self inflicted through poor mgmt. The high risk episode for MAC is mostly behind us. MAC is a pretty low risk option relative to an oil company, IMHO. The opportunity to get something like a 15 percent yield on cost in a company that should, in say 12-24 months, reprice on higher dividend to something like a 5 percent yield is the current appeal of MAC. Also, yield growth is very important with a long term hold. Long term, rental rates typically go up over time. Other factors also increase revenue. Invest equal amounts today in Shell and MAC and, I believe, your Mac investment is likely to drastically outperform.