Originally Posted by
Manhattan
There's a right and a wrong reason to buy CJ. You're basically flipping a coin with their dividend since it depends on where oil goes. Almost never a good idea to buy a struggling company purely for the dividend since a high dividend usually indicates high amount of risk. Ask yourself if its really worth taking on so much risk for an additional 3% yield when you can buy Enbridge or something similar that pays out 5%. Chesswood (CHW) is a equipment leasing company that pays out a similar dividend and their underlying business a lot more stable although still economically sensitive. Makes more sense to buy CJ because the assets are undervalued (60% of book value) while getting paid to wait for valuation to appreciate.