Frontline Ltd. (FRO)

[Fredledingue]

I initiated a position in FRO at $42.7

[Airelon]

Welcome aboard the Frontline train mate.

The other day Bloomberg came out with a very critical report on Frontline, banding about the word "crash due" the Maritime transportation market with Frontline leading the way. I found the article very biased at best - at worst, misleading and simply wrong in their conclusions. They used a few true facts to support a completely false conclusion. Yes, tankers purchases have been up. Nowhere did they discuss the conversions. Nor did they discuss the fleet diversification amongst oil consuming nations. The article made it seem as if Frontline's business hinges on the oil market to the United States.

But then again, you know how analysts are. Two days earlier a few firms came out and said Frontline was the stock to have for growth and income.

Go figure.

[England]

Ok, let me get this straight, cause I've been thinking about jumping into FRO. If I were to buy one stock of FRO, I'll get the $3.25, no more no less. So lets say I buy 20 shares of them, will I get the $3.25x20, or will it just be $3.25 overall? I'm still watching my AAPL stock soar close to $200.

[Airelon]

With most dividends, you get the dividend per share. So if you owned 20 shares?

20 * Dividend Amount = what's due you.

However, remember with dividends there is a "Be in by ___" date. This is called the Ex-dividend date. This means that you must be in by that date, to have the right to a dividend.

The $3.25 is almost double what Frontline usually pays, and the ex-dividend date was 10-10-2007. So this dividend has come and gone (It's being paid out of the company today, which will probably show up to shareholders accounts in the next week or so). But they regularly pay around / approximately $1.50 every quarter, per share; which is higher than most of the industry by quite a bit.

So if you bought 20 shares? Then the next time the payment date rolls around, you'd be paid (by way of an example), 20 * $1.50 = $30.00 for owning your Frontline shares. The quarter after that, another $30.00 - and so on - according to whatever Frontline sets the dividend at on declaration day. I forget whether or not Frontline has a DRIP program (Dividend Reinvestment Plan) or not; I'll have to look that one up.

Here's a good article on Dividends from Wikipedia. Has a lot of good information regarding the dates, and what they mean.

[Airelon]

Oh, and almost forgot - good on with your APPL play mate !

[Airelon]

Frontline does have DRIP (just received mine), and is up on such buying.

[Fredledingue]

Originally Posted by Airelon

Welcome aboard the Frontline train mate.

I thought it was a boat, did I invest in railways?

Seriousely,
I actively ignore analysts recommandations or ratings. I lost a fortune listening to them afew years ago. For me it's even good news when they bash my stocks.

Dividend
Be careful Y!Finance reports a 14.5% yield annulay: This year-average includes the one time $3 dividend. The real ratio is between 11 and 12%. (Which is still awesome. )

[Airelon]

LOL. I can't believe that I didn't use 'on the boat' reference.

Must be all of the "Railroad Tycoon 3" that I've been playing on my computer lately. I've got trains on the brain.

Yeah, I view most of what the one article stated as absolute garbage. Tis' just the piont that sometimes analysts can 'sensationalize' an idea, and very good stocks can take a beating over bad press. I instantly think of NLY last summer; and that was once instance (one of the few) where I had to completely agree with Jim Cramer. The CEO with NLY had been preaching for sometime about the lunacy that mortgage companies were engaging in, with the subpricrisis me market. But when the subprime hit? Guess who also got thrown out with the rest of the trash? NLY. True, it was a broad sector / market downturn, but honestly, people shorting NLY because they were with the mortgage sector was insane. They engaged in none of the idiotic behavior that others were.

So at times, when I see negative articles that take a very real bad situation, and blast a good company for it - it torques me off.

In regards the dividend reporting. Yeah. I'm a big-time dividend investor. So I pay careful attention to a) how long a company has been paying dividends b) what's on the roster for the corporate plan in regards to dividend (if you read FRO's business plan - it's a major part of their business strategy) c) how often they pay dividends d) How often they pay extraordinary dividends, in regards point a) and c).