# Which stocks for dividends right now?



## princeplanet (6 December 2012)

I want to buy some stocks very soon, looking for good yield and some upside growth wise. Are the banks too high at present? Miners? Others? Any advice appreciated. thanks!


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## notting (6 December 2012)

princeplanet said:


> I want to buy some stocks very soon, looking for good yield and some upside growth wise. Are the banks too high at present? Miners? Others? Any advice appreciated. thanks!




Mining services.
ASL
NWH
FWD
BLY there is more!
These may reduce their dividends a little, but their service books are not expanding but not really contracting that much either. Market tends to over react to headlines like - 'mining boom is over'.
Labor should get cheaper if less exploration.
Insurance
QBE
Bank
NAB
Clydesdale  issue is pathetically small, but is treated like it's a mega  issue keeps it cheap!
There's heaps more, market is great value still.
These are just what first came to my dementia mind.


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## princeplanet (7 December 2012)

Thanks. Any other thoughts?


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## trillionaire#1 (7 December 2012)

As long as their is some diversity i guess,heres a list of my either owned divi stocks or those im keeping a close eye on,AAD,AAX,ABC,APN,ASL,ASX,BKN,BEN,BYL,CAB,CMG,DCG,DTL,DWS,EHL,FWD,HSN,IFL,ILU,IMD,LGD,MAH,MIN,MND,MLB,NAB,NWH,OKN,PRG,RIC,RCG,RFG,RHL,SUN,SXE,TRU,TSE,UGL,WBB..

                                                                  of course DYOR,my stock picks can and sometimes do tank!


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## Knobby22 (7 December 2012)

I would add MOC to the above list.


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## So_Cynical (7 December 2012)

With the All Ords at 4555 i would argue that the market may well look cheap and present as good value at the moment, but the absolute fact is that it was much better value 6 months ago at 4033, unless you were buying the miners and mining services.

Anyway on the subject of yield and entry i would suggest some very sound smaller caps...stocks not overly exposed to the mining slow down, the dollar, infrastructure spending or anything else that worries many.


PFL - Patties Foods ~ 6.8% Gross Yield
ALF - Aust Leaders LIC ~ 10.5% gross Yield
ABC - Adelaide Brighton ~ 6.7% Gross Yield

I should disclose that i hold all the above and have done for a while.


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## Tyler Durden (8 December 2012)

Tabcorp (TAH) might be a good buy at around $2.70. It seems to float between $2.70 and $2.90.

DYOR. I hold.


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## So_Cynical (8 December 2012)

Tyler Durden said:


> Tabcorp (TAH) might be a good buy at around $2.70. It seems to float between $2.70 and $2.90.
> 
> DYOR. I hold.




Wow TAH has a gross yield of over 10% .. downside is all the Govt regulation and state contracts that come and go and the anti gambling (nanny state) lobby..still an opportunity if the entry is low enough.


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## systematic (9 December 2012)

Stocks of a decent market cap etc.
5% minimum dividend yield (can be considered a high yield currently)
Payout ratio less than 50% (i.e. at least as much - or more - as the dividend payment is retained earnings)
Estimate annual dividends per share is greater than the trailing12 month dividends per share (i.e. expected to be growing dividends)


ASL Ausdrill
API Australian Pharmaceutical Industries
IMF IMF Australia
MIN Mineral Resources
PRG Programmed Maintenance Services


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## Tyler Durden (9 December 2012)

So_Cynical said:


> Wow TAH has a gross yield of over 10% .. downside is all the Govt regulation and state contracts that come and go and the anti gambling (nanny state) lobby..still an opportunity if the entry is low enough.




Yes, I think they are currently waiting to see if NSW will continue their exclusivity licence.


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## skc (9 December 2012)

Tyler Durden said:


> Tabcorp (TAH) might be a good buy at around $2.70. It seems to float between $2.70 and $2.90.
> 
> DYOR. I hold.




Pretty sure tah is expexted to cut its dividend when something expires in the near future. Will have a dig and post here if i have time (and/or remember).


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## sydboy007 (10 December 2012)

skc said:


> Pretty sure tah is expexted to cut its dividend when something expires in the near future. Will have a dig and post here if i have time (and/or remember).




I'm prety sure TAH lost the Victorian wager business, so the expected Dividend for 2013 is about half of the 2012 one.

Still a reasonable yield, but certainly not the WOW level it currently shows.

NAB is prob the only reasonably priced big four bank left, thought I do find ANZ tempting as their Asia growth strategy seems to be paying off and management so far has shown they will not buy into the region at over the top prices.

I like BSA, though they are thinly traded most days.  They should be able to keep paying out around 10% full franked yield.

SXL southern cross is also a decent dividends payer, but the whole Nurse debacle could hit profits hard depending on what happens to the advertisers and if they get an expensive court case against them.

I'm tempted to say BHP, only in that they have a long history of increasing their dividends.  If their liquids play in the USA pays off they could be pumping out quite tasty profits over the next cuple of years.  Admittedly not as lucrative as digging up iron ore in the pilbara, but still offering very high ROI.

QBE is worth a look, but I'm waiting to get clarity on if they will do a capital raising - sounds like they might have to after SS Sandy and S&P showing some disquiet over their TIER 1 capital.  They might decide to cut back on the dividend payout ratio as well for a couple of years to build up their capital that way.

From what I can see most of the better dividend stocks now are at the smaller end of the market.  All the big caps have taken off int he last few months and while they still pay a decent income, they're not as attractive now.  Who says timing doesn't matter


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## princeplanet (11 December 2012)

Smaller caps are still beyond me for the moment, I don't understand enough about how to read them. Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value?  At least over the next year or two.....


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## Klogg (11 December 2012)

princeplanet said:


> Smaller caps are still beyond me for the moment, I don't understand enough about how to read them. Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value?  At least over the next year or two.....




To be honest, I would have thought that Smaller caps are easier to understand, as the smaller the company, the simpler their operations (usually).

Ofcourse, this could just be me...


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## So_Cynical (11 December 2012)

princeplanet said:


> Smaller caps are still beyond me for the moment,* I don't understand enough about how to read them.* Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value?  At least over the next year or two.....




Don't know how to read them? sorry prince but that line has 0 credibility...how about some honesty?

Please explain to us why you want to focus on the top 20..honestly.


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## princeplanet (12 December 2012)

So_Cynical said:


> Don't know how to read them? sorry prince but that line has 0 credibility...how about some honesty?
> 
> Please explain to us why you want to focus on the top 20..honestly.




Huh?  I don't understand why  I wouldn't wanna be "honest" about all this... And yes, I _don't_ know how to read them! Small caps seem very volatile, and can change direction with no forewarning to the novice investor such as myself. The majors seem safer to me. How is this wrong, or even dishonest?


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## Country Lad (12 December 2012)

princeplanet said:


> Which of the ASX top 20 seem to be at least the safest bets for holding or growing their yield, as swell as holding or growing their value?  At least over the next year or two.....




Looking at dividends is fine, but even for the larger companies, don't necessarily expect the dividend to remain the same.  There is the possibility that with a downturn in the economy, the profits drop and the dividend falls.  

The average dividend yield for the ASX 20 is only about 3.8% which isn't real flash.  At least they are all fully franked which helps.  

Knowing that interest rates were falling and the possibility of lower dividends, I went for fixed rate bonds to store cash a while ago.  Most are low risk and have increased in value since eg HBSHB 7.25% unfranked, face value $100, now $106 fair value $107.43.  I see one of the main brokers is recommending MQCPA and WHFPB.  

That's not answering your question because I donno, not interested in any of the ASX20 for dividend outside the ones I hold at the moment.

Cheers
Country Lad


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## Klogg (12 December 2012)

princeplanet said:


> Huh?  I don't understand why  I wouldn't wanna be "honest" about all this... And yes, I _don't_ know how to read them! Small caps seem very volatile, and can change direction with no forewarning to the novice investor such as myself. The majors seem safer to me. How is this wrong, or even dishonest?




For me, the assumption that the majors are 'safer' is wrong...

The idea of too big to fail isnt always true.


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## So_Cynical (12 December 2012)

Klogg said:


> For me, the assumption that the majors are 'safer' is wrong...
> 
> The idea of too big to fail isn't always true.




Yep.

-------------

But its hard sometimes to get people to understand that size and market cap doesn't count for much..RIO was $85 not that long ago (2011) and $49 dollars this year...Top 5 stock yet buy at the wrong time and you lose lots.


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## Muschu (12 December 2012)

princeplanet said:


> Huh?  I don't understand why  I wouldn't wanna be "honest" about all this... And yes, I _don't_ know how to read them! Small caps seem very volatile, and can change direction with no forewarning to the novice investor such as myself. The majors seem safer to me. How is this wrong, or even dishonest?




Your question does not seem to have been answered yet but I, for one, certainly see nothing dishonest in your remarks.  Rather, I viewed it  as being very open.

Perhaps another reflection of the difference between sitting in front of a keyboard rather than in front of a person?

Regards

Rick


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## So_Cynical (12 December 2012)

Muschu said:


> Your question does not seem to have been answered yet but I, for one, certainly see nothing dishonest in your remarks.  Rather, I viewed it  as being very open.
> 
> Perhaps another reflection of the difference between sitting in front of a keyboard rather than in front of a person?
> 
> ...




I thought it was pretty obvious rick.

I don't think princeplanet is being honest with us or himself...he clearly has no idea and i just tried to cut through the crap and get to the point where he comes out and says it, or goes away and gets an idea.

Comments like "I don't know how to read them! Small caps seem very volatile" and " The majors seem safer to me. How is this wrong" i mean seriously...RIO going from $85 to $49 in 15 months seems safer? The QBE dividend has been almost halved in the last 12 months while the share price has fallen 40% in 2 years...the CSL dividend has been stagnant for 4 years.

The top 20 certainly seem safe to me.


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## Muschu (13 December 2012)

So_Cynical said:


> I thought it was pretty obvious rick.
> 
> I don't think princeplanet is being honest with us or himself...he clearly has no idea and i just tried to cut through the crap and get to the point where he comes out and says it, or goes away and gets an idea.
> 
> ...




I had a different interpretation SC, that being that PP was being quite honest in saying he had little idea. I don't think that is semantics.

Just my view.

Rick


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## princeplanet (13 December 2012)

So_Cynical said:


> I thought it was pretty obvious rick.
> 
> I don't think princeplanet is being honest with us or himself...he clearly has no idea and i just tried to cut through the crap and get to the point where he comes out and says it, or goes away and gets an idea.
> 
> ...




Er, so what does being ignorant have to do with being dishonest???   I did post this in the beginner's lounge, right?  Anyway, interesting that people feel the top 20 to be equally as volatile as most small caps. I got stung badly by RIO and BHP, but the banks have been friendly, til now....  Do you guys think the banks will tank and the miners will swing back? Also, might it be true that if a major goes through a bad patch, it's more likely to recover eventually than a small cap? Even if it takes years. Surely more smaller companies go broke than the biggest ones. What am I missing here?


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## Klogg (13 December 2012)

princeplanet said:


> Also, might it be true that if a major goes through a bad patch, it's more likely to recover eventually than a small cap? Even if it takes years. Surely more smaller companies go broke than the biggest ones. What am I missing here?




But that's on the assumption you're picking any random Small Cap. If you were to be selective, look at those with a stronger Balance Sheet and increasing profits, I'd say you're on something better than the top 20.

To be honest, even for a beginner, if you're going to take the opinion of "I don't understand them" and just pick random stocks (even if they're in the top 20), you're not going to learn much, nor will you perform well...

You could always just put money into the Index...


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## Bill M (13 December 2012)

Klogg said:


> You could always just put money into the Index...




I was going to mention ETF's.

Princeplant take a look at ETF's, maybe worth your while. Things have changed a lot in the ETF world in the last couple of years.

Now you can buy the top 50, top 200, top dividend payers, currency ETF's, property, resources, bonds etc.. You got the lot now. By buying 1 ETF you can cover the sector of your choice, depending on the fund of course.

Some providers you can look at are Vanguard, Betashares and State Street Global Advisors, some very good products out there. Good luck.


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## tinhat (13 December 2012)

WBC is yielding about 6.4% and TLS 6.5%. I don't expect any earnings growth from WBC over the next couple of years. TLS has more upside potential but more downside risk too - all depends if management can get their strategy right over the medium term and within the new level playing field industry structure of the NBN.


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## TikoMike (13 December 2012)

So_Cynical said:


> I thought it was pretty obvious rick.
> 
> I don't think princeplanet is being honest with us or himself...he clearly has no idea and i just tried to cut through the crap and get to the point where he comes out and says it, or goes away and gets an idea.
> 
> ...




What is with the attack on someone who is probably quite new to stocks? Yes he made a statement but it looked to me like a question within that statement. What an arrogant post. Seriously, get off your high horse.


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## Julia (13 December 2012)

TikoMike said:


> What is with the attack on someone who is probably quite new to stocks? Yes he made a statement but it looked to me like a question within that statement. What an arrogant post. Seriously, get off your high horse.



Agree with TikoMike and Rick.  We all started somewhere.  I know I asked some questions which I realised later seemed very dumb, and I probably still do.
Let's encourage new people, not put them down.


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## DocK (13 December 2012)

Bill M said:


> I was going to mention ETF's.
> 
> Princeplant take a look at ETF's, maybe worth your while. Things have changed a lot in the ETF world in the last couple of years.
> 
> ...




Further to Bill's post, you might want to take a look at the ASX info regarding LIC's (under the managed funds tab) and you'll find lots of info re ETFs under the Exchange Traded Products section - here's the link: http://www.asx.com.au/products/all-products.htm


Julia said:


> Agree with TikoMike and Rick.  We all started somewhere.  I know I asked some questions which I realised later seemed very dumb, and I probably still do.
> Let's encourage new people, not put them down.




+1  I certainly didn't think such an honest question deserved the put-down it got, particularly in the Beginner's Lounge.  Posters lament the lack of stock-specific posts - responses such as So Cynicals don't encourage those of us that have much to learn to post in that area.


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## notting (13 December 2012)

tinhat said:


> WBC is yielding about 6.4% and TLS 6.5%. I don't expect any earnings growth from WBC over the next couple of years.




This just seems nuts to me.  Can't belive Gail Kelly thinks there will be another interest rate cut.
That put's us on a more conservative footing than during the GFC pumpkin smashing.
Consumer sentiment? c'mon, surely people are feeling happy with less interest being paid.
Or are we all in surplus and losing on the doposits?


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## Julia (13 December 2012)

notting said:


> This just seems nuts to me.  Can't believe Gail Kelly thinks there will be another interest rate cut.



If she does, she's far from being on her own.  Most economists (yes, I know they're often wrong) are predicting at least one more cut, maybe more.



> That puts us on a more conservative footing than during the GFC pumpkin smashing.



Correct.  Yet Mr Swan insists the interest rate cuts are purely on the basis that the government's successful economic management has made it possible.  Never mind that when they were last as low he claimed they were at 'emergency levels' because of the direness of the GFC.  People see businesses closing down all around them, friends losing jobs, etc, and give little credit to Mr Swan's claims

Fiscal and monetary policy seem to be working against each other.



> Consumer sentiment? c'mon, surely people are feeling happy with less interest being paid.
> Or are we all in surplus and losing on the doposits?



I suppose it's a case of fear outweighing practical considerations of lower interest payments, given the unresolved situation in Europe and the US, not to mention the political uncertainty here.


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## Country Lad (14 December 2012)

notting said:


> This just seems nuts to me.  Can't belive Gail Kelly thinks there will be another interest rate cut.




Of course there will be another cut, particularly as the rate drops are being undermined by the banks not passing it on in total.  The Reserve Bank has said that its target at this point is the $ which is still rising.




> That put's us on a more conservative footing than during the GFC pumpkin smashing.




Nothing to do with the economy and everything to do with the US printing more money.  Their continuation of quantitative easing is intended to drop the US$ to make the US manufacturers more competitive.  Result is our $ holding up or increasing, making us less competitive. Let's face it, the fact that commodity prices fall, interest rates fall and the A$ rises tells you something.

The only way to counter that is to forget out about the surplus and start spending a little more instead of this contraction stuff. 



> Consumer sentiment? c'mon, surely people are feeling happy with less interest being paid.
> Or are we all in surplus and losing on the doposits?




Most of us, yes.  Only 30% of us have a mortgage so only 30% are happy for the rates to fall.  The increasing number of baby boomers joining the self funded retirees and pensioner brigade are feeling an income squeeze.

The government seems to have an interest only in those "working families" with a mortgage - a small proportion of the population.

Cheers
Country Lad


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## willstor (15 December 2012)

Any views on PRG? CD right now 1.91 a share


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## princeplanet (17 December 2012)

Does anyone think the big 4 banks are NOT a solid investment for the coming year?


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## ParleVouFrancois (17 December 2012)

Why would you an online forum of anonymous people about the big four banks? We aren't your financial adviser, beginners lounge or not. The quality of any advice or suggestions or opinions given here will vary greatly, if you're going to invest in the market PLEASE have an idea of what you're doing. Do not rush in, the market will be here tomorrow, learn enough about the market so YOU can answer the question of are the big four banks good value/have a good year etc.


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## princeplanet (17 December 2012)

Hmm, so if we should all just do our own research and not ask for the opinions of others, anonymous or not, then what the hell is this forum for?


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## Julia (17 December 2012)

ParleVouFrancois said:


> Why would you an online forum of anonymous people about the big four banks? We aren't your financial adviser, beginners lounge or not. The quality of any advice or suggestions or opinions given here will vary greatly, if you're going to invest in the market PLEASE have an idea of what you're doing. Do not rush in, the market will be here tomorrow, learn enough about the market so YOU can answer the question of are the big four banks good value/have a good year etc.



It was a pretty general sort of question and not an unreasonable one imo.  Didn't actually seem to me to be specifically asking for advice.


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## noirua (17 December 2012)

princeplanet said:


> Does anyone think the big 4 banks are NOT a solid investment for the coming year?




They are a solid long term investment if you buy equal amounts of all four -- 15 years+ that is, imho.  Short term, one year, they are a reasonable gamble.


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## Klogg (17 December 2012)

This is well worth a read if you're interested in a dividend play:

http://www.fool.com.au/2012/12/investing/dividend-reinvestment-plans-helpful-or-harmful/

Not so much for the DRP info, but more the way some companies fund their dividends...


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## springhill (9 January 2013)

For those not aware there is a free app for iPhone called ExDividends. It has a calendar format and has the list of stocks paying dividends on that day, also the dollar value and % franking.


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## Garpal Gumnut (9 January 2013)

WBC which I should disclaim I hold.

A standout divie.

gg


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## sptrawler (10 January 2013)

If you think the economy is on the up and there will be a change of government. AMP are quite cheap relative to dividend, they are under pressure from Industry funds applying pressure on the government. I would expect a surge if the libs get in or a slow grind if labor retain government.
The banks, it is hard to ignore them, just look at the underlying value of each rather than the share price. If our banks fail, we are in real $hit.
Take a long term view and build on a good base, there are not too many investors who bought WBC at $2.50 in 1990 that are worried or people who bought CBA at $5 on the first float or even $10 in 1994 on the second float.
Even Telstra,is starting to prove that owning something that generates ongoing income, will eventually come good.


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## sydboy007 (13 January 2013)

another question.  Are you looking just for income or do you hope for capital gain as well?

I know this is a stock forum but there's quite a few bonds out there offering over 6% yield - admittedly you need min 50K to purchase - checkout FIIG securities.

nothing like getting a real 4%+ yield with minimal risk to help things chug along.


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## Pager (13 January 2013)

You could always consider one of the high dividend tracking ETF,s like SYI, pays quarterly dividends and yields about 6% on its current SP most of which is franked and also saw its SP appreciate about 18% in 2012, heavily weighted towards the banks at present but there all paying big dividends.

http://www.spdr.com.au/etf/fund/fund_detail_SYI.html


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## sydboy007 (15 January 2013)

Pager said:


> You could always consider one of the high dividend tracking ETF,s like SYI, pays quarterly dividends and yields about 6% on its current SP most of which is franked and also saw its SP appreciate about 18% in 2012, heavily weighted towards the banks at present but there all paying big dividends.
> 
> http://www.spdr.com.au/etf/fund/fund_detail_SYI.html




ishares IHD might be a safer bet as it's paying a similar yield but they limit an sector investment to 20% of the fund, with a4% max per share.  It's why I picked it for my SMSF so i wouldn't be too exposed to the banks.

Still, with TDs lucky to make 5% the bank dividends with franking credits still look mighty tasty :microwave


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