What am I mising here?
One stock I have had interest in is ACAS. I see a stock trading low 20s paying a dividend of over $4 per share. Now normally when I see a high dividend yield I do a little homework to see why. Oftentimes it means the stock is plunging and the dividend is most likely going to be cut. So I do some more homework here. And all I find is pretty much an assurance that they will continue to pay its dividend with sufficient existing funds to pay even half of next years so far. Further homework shows that this stock's original IPO was $15 in 1997 and has to date paid over $29 in dividends. So in essence if you bought it and held you made almost 200 % on your original investment over 11 years. That's a pretty damn good annual return I think.
So what am I missing? Yeah financials are a crap shoot at the moment. But this company holds its own paper with no pressure to sell. So the income off the paper continues to the end. There is also no indication of high default rates at all. In fact almost negligible. So is this just a broken stock? And if just a broken stock, for 20% annual yield people would be nuts not to buy this and hold.