I am new to investing and currently have around $5,000 in my portfolio. I saw that NLOK is having a special dividend of $12.00 per share soon. So my question is. Is it a good idea to spend 3/4 of my savings (around. $40,000) with just shares of NLOK for that dividend or is that a terrible idea? Please let me know before I decide to lose my entire savings.
Hello, Ramon. I'm going to go ahead and roll the "R" in your name. That "dividend" was actually a one time $8b return of capital to shareholders. The forward yield is abysmal at under 2%. Companies issue a return of capital when they have excess cash and no use that brings a reasonable return. If the business could have expanded or upgraded in a profitable way, they would have consumed the money. This could be a sign the company could use a dividend raise. It could also be a sign the company isn't growing. Personally, I would take it as a mild positive sign. As for specific advice on nlok, I will leave that to you and your clairvoyant.
Thanks for the reply! I’m new to the stock market game so I’m just looking for an expert’s advice. Would you not buy shares of NLOK? I’m on the fence about buying 1000 shares or not. Because that would be $12000 in dividends
I wouldn’t personally put 3/4 of my savings in one basket, especially a basket I don’t fully understand.
I am also quite new to the stock game but I wouldn't take internet forum advice as 100% accurate even if it might be spoken by an expert. I assume this place is mostly for sharing insights and personal opinions, because in the end everyone is responsible for making their own decisions.
with the amount of funds you have $5k you have to ask yourself this question am I willing to loose $500.00 which is a 10% drop if NLOK tank 10%. Here is food for thought crunch numbers: 100shs x 28.11 NLOK =$2811.00. 10% draw down $281.10 + fees= x$ output. 12% return $1200.00 for the week. $1200.00 - $281.00=$918.90 - fee on the sell side is the risk to reward worth it. Now for the downside on 3 Feb every tom dick and harry going to be selling is there going to be anybody on the ask side this is the big unknown. At the end of the day you make the decision.
