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JaxRed
04-24-2012, 12:46 AM
I'm enthused about something new I've been doing recently. I'm closing in on retirement. I'm eligible for Social Security next summer. Retirement is happening with a whimper and not a bang.

I went from full-time, to part time with consulting, to just part time to just consulting a bit. So it's been tapering off.

I'd been following the axiom about making your stock investments more conservative the closer you are to retirement. In the last couple years we'd gone ultra-conservative. Much was even in money markets just to ensure no loss of principal.

The theory being to amass as much money as possible because you will need to draw on it in retirement. There's a theory about drawing 4% of your money out yearly and that leads to discussion about whether you will outlive your money.

I had kind of an "a-ha" moment recently listening to an financial adviser discussing that the goal shouldn't be how much you have, but how much of a yearly stream of income will it produce. For example if you had a million dollars, you could earn 5% and get $50,000 yearly and NEVER touch the principal.

That led me into the world of "Dividend Growth Investing". There's a subset of investors out there who are not trying for growth of principal, but growth on the amount of dividends an investment creates.

Example - Facebook will be coming out as an IPO soon. The stock will pay no dividends, but tons of people will be betting that an investment in Facebook will pay off like an investment in Google. A Dividend Growth Investor would have no interest in it.

Instead they would be more interested in McDonald's. McDonald's has increased it's dividend for 36 straight years. So if you buy McDonalds, and let the dividends re-invest automatically, over time it will really add up.

There are lists of companies that have paid (and increased) dividends for 50, 40, 30 etc years in a row.

more.....

JaxRed
04-24-2012, 12:56 AM
Part 2 -

So that became my plan. To make my own Dividend Growth Portfolio out of our existing IRA's to supplement my pension and social security. I would do this in a Self-Directed IRA.

As I started doing the research on the stocks, etc. It became evident that for someone getting ready to retire, the "McDonald's" of the world are a little too "safe". McDonalds is paying only about 2.9%. If you have a 20 or 30 year window that works, but if you want to generate current income with a little growth, you have to find stocks with a higher dividend.

You have to be careful. Many time a high dividend rate means the company has fallen on hard time and they are about to cut the dividend. So it pays to do some DD (due diligence).

I found a good site called Seeking Alpha where people share investment ideas. And there is a whole area about Dividend Investing. So that's what I've been doing for last 3 weeks or so. Researching and buying stocks for my Self-Directed IRA. Around May 15th the first dividends will start arriving.

So if this area if of interest to anyone, feel free to discuss.

oneupper
04-24-2012, 10:38 AM
This is an area where I have some experience, which I am glad to share here without the corresponding fees :)
I know there are others in the field who are on the board.

I work mainly with foreign investors in fixed income, so our focus is on bonds, since dividends do not have the tax advantages over interest income that they do for most US investors (the opposite is mostly true).

However, if we are talking about IRAs, where whatever happens within the account is irrelevant for tax purposes, income from bonds and particularly high-yield bonds can be more advantageous than seeking income via dividends for a US person.

There's a little more complexity in trading bonds than stocks, particularly online, but it could fit well into a fixed-income strategy for a self-directed IRA.

medford
04-24-2012, 10:41 AM
I have a handful of higher yield dividend stocks in my roth IRA. There are a handful of real estate companies that have been beaten down due to the market (and perhaps they're own balance sheets during this downturn) that are now starting to bounce back. REITs by nature have to offer out a high % of their profits in dividends to remain classified as a REIT and the tax breaks that come with it. You should be able to find a package of companies here that offer solid dividends that are now poised to bounce back (if they haven't done so already) that can offer a little growth as well.

There are also some areas outside of REITs, one of my favorite stocks has been a small company called Medallion Financial (TAXI) which specializes in medallion loans in NYC. They've regularly paid out an above 5% dividend thru all of the markets up & downs.

I'm hardly a professional, most of my retirements is funded thru my 401(k), actually my IRA recieves mostly just maintance work for the time being, but I've used my dividend stocks to help fund further purchases of stock when the market tumbled to cost average down.

gonelong
04-24-2012, 11:14 AM
I'm 42 ... about 5 years ago I began purchasing dividend paying stocks in my Roth IRA. At 37 or so I thought I had about 25-30 years to retirement and it was time to begin thinking about dividends and the income they might provide. At this point my portfolio has mostly larger companies that have paid regular dividends (and increased them) over time. I currently have MCD, BIP, BGS, VZ, MMM, & RIG. I am hoping to hold some of these stocks for life so all dividends on these stocks are reinvested. I also have VZ and RAI, but I suspect I will sell them at some point in the future.

I maintain more of a growth stratedgy with my 401K investing in individual stocks, sometimes swing trading, a little gold/silver, etc. At some point I will probably begin purchasing more and more dividend paying stocks, likely soon. One of the things I'd like to start looking at in this account is small caps that initiate dividends or are already paying dividends.

GL

bucksfan2
04-24-2012, 11:21 AM
I am quite a bit younger than you are but I look towards dividends in all my investments. If you like the dividend increasers check out VIG or SDY. Both are ETF's, VIG is a dividend appreciating ETF and SDY is the dividend aristocrats.

For yield I like utilities, telecom, and consumer staples. I know there isn't huge upside growth but I also like the "monopoly" aspects of Utilities. Looking close to home PG, CINF, DUK, and AEP all have attractive yeilds, have paid dividends for a long long time, and increase them regurarly.

JaxRed
04-24-2012, 11:53 AM
Mentioning REITS.... one of my favorite's right now is OHI - Omega Healthcare Investors Inc. Going Ex-Dividend in the next couple days. Paying 7.9% right now. Been increasing dividends yearly since 2003

JaxRed
04-24-2012, 11:18 PM
Have had 2 increased dividends since April 13th when I started. Linn Energy (Yield 7%) increased today. :)

oneupper
04-25-2012, 12:08 AM
HAS (Hasbro), also with a div hike. (4% yield).

JaxRed
04-25-2012, 12:14 AM
Wow, three straight years of 20% hikes in dividend for Hasbro

BuckeyeRed27
04-25-2012, 02:19 AM
I'm not a fan of dividends as a primary income strategy. Too much risk and too little guarantee. I also feel high dividend stocks are a bit overvalued and will continue to be so. Too many investors are looking for yield and eventually there will be an exit from these stocks when they can get yield elsewhere.

JaxRed
04-25-2012, 08:49 PM
Most people feel the opposite, that dividend investing is about the safest.

Had an interesting day. Two of my stocks go ex-dividend tomorrow so they went up pretty good today. It'll be interesting to see how much they come down ex-dividend.

Jefferson24
04-25-2012, 11:10 PM
I am going to work till I drop, my family will be sad but well covered.

Between college funds and bills I find it hard to put aside extra for retirement. My company puts away 6% of my annual salary in a profit sharing plan, which is nice, no match required.

BuckeyeRed27
04-26-2012, 04:21 AM
Most people feel the opposite, that dividend investing is about the safest.

Had an interesting day. Two of my stocks go ex-dividend tomorrow so they went up pretty good today. It'll be interesting to see how much they come down ex-dividend.

Dividend paying stocks tend to be "safer" in terms of stocks, but are still risky as an asset class. I've seen way to many people get lulled into a sense of security because of dividends. People tend to over do it from a diversification stand point as well.

bucksfan2
04-26-2012, 10:03 AM
Dividend paying stocks tend to be "safer" in terms of stocks, but are still risky as an asset class. I've seen way to many people get lulled into a sense of security because of dividends. People tend to over do it from a diversification stand point as well.

Nothing is "safe" in terms of investing. My first two stocks that I bought were UPS and Bank of America. At the time BAC paid a 5-6% dividend and was a nice stock. Then the financial crisis hit and the dividend went from $.60 per quarter to $.01 and it went from $60 to $4. The banking sector used to be a great place for yield, not its a great place for pretty much nothing.

Barring a bubble pop, which catches pretty much everyone with their pants down, I still think quality dividend stocks are a "safer" investment, especially with bonds in a bubble and interest rates savings accounts near 0. The two things that I like about dividends is it makes a stock difficult to short. You don't want to be shorting the stock but also paying a dividend. Also if the market goes down, you are still getting paid as long as you hold the stock. They aren't guaranteed but there are many companies out there who hold a dividend and increasing dividend important.

lidspinner
05-01-2012, 11:42 AM
i wish I knew more about this stuff....I am so dumb when it comes to stocks and investing my money....I would love to get some advice on how to start small, and I mean really small, so I can learn on my own and not feel raped if I lose my investment....then as I learn and teach myself, hopefully more options will become available and I can actually learn from people like you all on here...but right now it looks like I am reading a forum in arabic or chinese or some foreign language.....haha.....

if anyone wants to give me some advice on where to start and what to start with I would appreciate it...I understand this is not something you learn in a years time, its a lifetime of learning, but I really do have a "itch" to start learning how to invest, even if it is in small amounts. I am open to all ideas and advice..

Cyclone792
05-01-2012, 01:58 PM
i wish I knew more about this stuff....I am so dumb when it comes to stocks and investing my money....I would love to get some advice on how to start small, and I mean really small, so I can learn on my own and not feel raped if I lose my investment....then as I learn and teach myself, hopefully more options will become available and I can actually learn from people like you all on here...but right now it looks like I am reading a forum in arabic or chinese or some foreign language.....haha.....

if anyone wants to give me some advice on where to start and what to start with I would appreciate it...I understand this is not something you learn in a years time, its a lifetime of learning, but I really do have a "itch" to start learning how to invest, even if it is in small amounts. I am open to all ideas and advice..

Buy a copy of this book (or grab a copy from a library or something) and read it:

http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365/ref=sr_1_1?ie=UTF8&qid=1335891195&sr=8-1

My investment philosophy follows much of the premise of that book: save money, utilize tax-sheltered accounts properly (IRAs, 401k, 403b, etc.) and invest in low cost index funds.

If you're able to understand and execute most of the concepts illustrated in that book, you'll do well for yourself.

bucksfan2
05-01-2012, 04:14 PM
i wish I knew more about this stuff....I am so dumb when it comes to stocks and investing my money....I would love to get some advice on how to start small, and I mean really small, so I can learn on my own and not feel raped if I lose my investment....then as I learn and teach myself, hopefully more options will become available and I can actually learn from people like you all on here...but right now it looks like I am reading a forum in arabic or chinese or some foreign language.....haha.....

if anyone wants to give me some advice on where to start and what to start with I would appreciate it...I understand this is not something you learn in a years time, its a lifetime of learning, but I really do have a "itch" to start learning how to invest, even if it is in small amounts. I am open to all ideas and advice..

Just do it. If you have the funds available, you can set up a very inexpensive brokerage account through an online broker(TD Ameritrade, Schwab, ETrade, Scotttrade.) Once you have done that it is pretty simple to trade, its just finding the right stocks. Cyclone mentioned a Boglehead philosophy that I don't agree with fully but its something to consider. You can get your hands on all types of investment publications. Some are good and some not so much, if you have a kindle you can get all kind of investment books for around $1-2. I like to read Kiplinger, Money, SmartMoney and Fortune just for ideas. I also enjoy watching Jim Cramer (gasp) just to get his take on things and also for ideas.

Its one of those things that you learn a lot more when you are acutally doing it, than when you are on the sidelines looking at it. Personally I think its something that you need to create your investment philosophy, get as much information as you can handle, and make your decisions based upon that.

Oh, if you have a 401K max out the company match. Its free money.

JaxRed
05-02-2012, 09:26 AM
There are also places online, where you can have simulated investments and brokerage trading. I might suggest one of of those. I personally haven't used them so I don't have a link.

However you go, it's important as Cyclone says to have a philosophy. That's what I was promoting in my original post. The philosophy of buying "Dividend Growth" stocks, (stocks that pay a decent dividend every year, and increase them every year), and reinvesting those dividends within an IRA. (preferably a Roth). This is to eventually produce an income string in future years and not touch the principle.

I do most of my online reading these days at seekingalpha.com They put together a model Dividend Growth Portfolio. Here are the companies they chose:

Our current portfolio consists of ExxonMobil (XOM), Johnson and Johnson (JNJ), AT&T (T), General Electric (GE), Annaly Capital (NLY), Southern Company (SO), Procter & Gamble (PG), Philip Morris (PM), Intel (INTC), Realty Income (O), Chevron (CVX), E.I. du Pont (DD), Duke Energy (DUK), Coca-Cola (KO), and Bank of America (BAC).

lidspinner
05-02-2012, 11:34 AM
a simulated invested site would be cool to play with...do you have one that you suggest is better than the others?

also, what is a good amount of money to start with as far as "newbie" investing is concerned? I have a PERS retirement at work and I currently put a puny weak 100$ a month into a deferred comp program that I dont even look at...I dont even know what type of fund the def comp is in, it gets taken directly out of my check bi weekly and I dont look no further into it....I want to start doing something other than what I already have and I want to actually be involved in the process and actually try to understand what i am doing at the same time....

I have an ipad so I will start looking at some books in the store, wife has a kindle so I can find what itunes dont have there....

basically if you have any suggestions on what type of minimum money to start would be, that would be great....I want to start small, so as when i screw something up or make a dumb move I am not feeling the hurt to bad.....once I start small and play with it for a few years I can then raise my investment amount as I learn more about whats out there and what works for me....

would $100 a month be to little to start with to just play around and try? and with that $100/month could I just join say Ameritrade or any of the online accounts and keep it going each month? I guess I am confused on how to even get joined....do you have a account with them just like a bank account? how do you pay them the 100/month?

like I said earlier, I am 100% stupid when it comes to this stuff but I am kicking myself in the nuts for not paying attention to my money when I was younger....i am 35 now so I have plenty of time to invest, but I want to have a bigger role in what I do...and I am truly starting as a green horn....I know NOTHING about this business. NOTHING.

JaxRed
05-02-2012, 12:13 PM
Like I said, I've never used on of those sites before so I don't know which ones are good or bad. Maybe someone else knows. I did Google to get a free site.

http://www.howthemarketworks.com/trading/index.php

I am almost positive $100 a month would be more than enough to get started. I also suspect if you call Ameritrade they will talk you thru what you need.

I do my online banking with USAA (anyone can join the banking part) and it's awesome. They created my self-directed IRA brokerage account, and the first 50 transactions are free.

I would find out what your PERS is invested in. If you find out, folks here can "interpret it".


By the way..... I'm 60. You ARE young !!

gonelong
05-02-2012, 12:20 PM
like I said earlier, I am 100% stupid when it comes to this stuff but I am kicking myself in the nuts for not paying attention to my money when I was younger....i am 35 now so I have plenty of time to invest, but I want to have a bigger role in what I do...and I am truly starting as a green horn....I know NOTHING about this business. NOTHING.

Investing is a bit like reading women ... just when you think you have it figured out ... *wham*! Be careful. It's very easy to lose 10-25-35% in a hurry, but it's very difficult to make 10-25-35% in a hurry.

I would suggest for $100 month you have a couple of avenues to get started:

1. Find a company you would like to invest in and that has a DRIP (http://www.fool.com/DRIPPort/WhatAreDRIPs.htm). Invest and begin researching a company for your next DRIP. Once you have another one you can either move the $100 to that one, or split them. Depends on the minimum each company requires.

2. Invest the $100 month in an index fund. Once you have a sizeable amount *and* a stock you want to purchase, sell the index fund and buy the stock.

Since it will take a few months to get to a sizeable amount, take that time to learn to evaluate a company from a financial perspective. Read a few investment books.

I will probably catch some flack for this one, but learn how to read a few charts. It is a tool in the toolbox and helps me decide *when* to buy/sell things, not *if* to buy/sell things. I find it very valuable.

GL

bucksfan2
05-02-2012, 12:27 PM
I don't have the right answer for how much is enough. If your going stocks or ETF's very few if any would requirer you to buy a certain amount (I can't think of any). So basically if you are going to invest you just have to consider the commission fee and how much you would need to make a profit. At Ameritrade fees are $9.99, so in order to make money you would need a $20 gain right off the bat.

Mutual funds often require a minimum dollar amount in order to buy. If you don't have enough you may want to look at ETF's who mimick mutual funds. They are often cheaper ways to invest in an area that you want.

As for Ameritrade it operates like an online bank. Once you get it set up you can ACH transfer funds the next day without an issue. I would however wait until you have enough saved to get some of their promo offers, like 30 days of free trading.

Cyclone mentioned it above but if you are going to invest around $5000 a year you may want to look at a Roth IRA. Its a retirement account that there are penalities if you need to withdraw before a certain age (59?) but once you put after tax money into it, it grows tax free and there are no tax consequences once you start to withdraw your money.

I agree with JaxRed for the most part. If you want to become a small time investor, pick one of those dividend stocks and invest in them. Its not the most diversified way but its a way to get your feet wet.

BuckeyeRed27
05-02-2012, 12:38 PM
I can't talk about a lot of this stuff at work so I'll get back later, but I wouldn't be buying any stocks in your position.

Most companies (TD, ETRADE, etc) have partnerships with some ETFs and they offer them for no commissions. Since I think you should be investing in ETFs anyways in your situation, given the amount you are investing cost is going to be extremely important. I would look into that.

JaxRed
05-02-2012, 12:38 PM
And I'll agree with GoneLong. Do a DRIP. I've heard that Sharebuilder is an excellent online site for doing DRIPs.

lidspinner
05-02-2012, 04:30 PM
You guys are a wealth of knowledge. Please keep this thread going. I'm gonna research some of the sites tonight and start this 100/month right away. I'll use this thread to fire questions at y'all as I go along. I'm sure I am going to need the help.

JaxRed
05-02-2012, 04:32 PM
I do know that USAA does free DRIPs and you get 50 free trades when you start. So make sure you get at least that.

medford
05-02-2012, 06:37 PM
Here is what I'd do.

1st things 1st, is any of this money you plan to use in the next 5 years? If so, don't invest it into the market. If this is truely savings for retirement or an extended period goal, then proceed forward. lets say you're planning on a down payment for a house with this money in about 5 years. What happens if the market gets cut in half and rather than having your down payment for your house at that point, you've got half of what you need?

2nd, what kind of benefits does your PERS account give you? is there matching of funds you put in? I'm not familar with it, but sit down with your HR people and find out what kind of benefits you get out of the PERS program. For example, lets say they'll match 50% of whatever you put in up to 4000. Right now you put in $1,200 a year. You'd be passing up another $1200 of "free" 50% returns. I don't care what you invest in, you're not making 50% return over the long run. If Warren Buffett can't generate those type of returns, neither can anyone else (at least anyone honest). If your afraid of sounding stupid to your HR person or whoever handles that for you, get over it. Trust me, you're not the first person that has money put into a 401k, PERS, STRS, etc.. that has no real concept of what happens to it. Educate yourself first and formost on what you are doing today to make sure that is being taken care of.

3rd, I don't know your financial situation, won't pretend to. Don't know your age, debts, job prospects, education, etc... Please don't take this the wrong way, but $100 a month is not very much to save up for your retirment (since your married I'll assume you're not exceptionally young, like college or HS age, at which point saving $100 month would be great) $200 a month really isn't very much either. Now perhaps you can't save much beyond that, like I said I don't know your financial situation, we've all (or at least most of us) have found ourselves in financial situations either currently, in the past or in the future that we wish were better. However, potentially there is room in your budget to save more. A few less trips to the stadium, more brown bagged lunches, a less expensive cell phone plan, etc.... Sadly $100 a month is much better than a large portion of America, so don't feel bad, maybe its all you can do. Maybe you've skimped as much as you reasonable can everywhere else in your life. If that is the case, then I completely commend you for scrapping out $100 each month, b/c certainly that $100 a month could be put towards something "more fun" Anyhoo, my point is take a hard look at your budget, get your wife involved, if you have kids, get them involved as well, you'll be amazed how much motivation kids can provide, how much more willing a kid is to skip that toy he "really" wants when he knows you doing everything you can to provide for your future. Don't cut out everything, you have a life to live, but 99% of americans have something more they find they can live with out (myself included, I should follow my own advice here more carefully)

Now that you've done step 1, 2 & 3 and find that you have more to save outside of your PERS program go to your bank, set up a savings account, even if you have a savings account there already, set up a new one for the purpose of saving up some initial funds. Set aside the $100 dollars a month you think you can afford today (or whatever that sum comes to after steps 1, 2 & 3), having it automatically set aside into this savings account each pay period. After a couple of months, if you haven't felt much pain, try upping your savings an extra $25, $50 $100, or whatever you think the next savings step is logically in your budget and see how much pain that creates. Basically, save until it hurts.

Step 5, if you don't have it right now, create a permanent emergency fund. Dave Ramsey suggests $1000 to his clients as they work their way out of debt. I've seen other places recommend 3-6 months of living expenses (Rent, mortgage, electric bills, food, etc...) Might as well read some Dave Ramsey while you're reading everything else. I don't now if you have credit card debt, or car loans, etc.. and I'll admit that he's "extreme" but you can't go wrong following his advice. As part of step 5, if you have debt outside of your mortgage, I'd recommend getting at least the high interest debt paid off before investing more into the market. The less debt you have, the more financial freedom you have.

Step 6, finally you get to the investing part. I think too many people have skipped the steps above. They may not all apply to you, particually step 5 regarding the debt. I wouldn't start with just 1 Drip or ETF. I'd save up enough to buy a couple of different ones. Perhaps save up for 6 months to get to $600, then invest $200 into 3 different ones. A Coca-Cola or Altria DRiP has been a great long term investment for the last 30+ years, however each has suffered sizeable drops over a 2-3 year period. You don't want to put all your eggs into 1 basket, watch that basket get chopped in half then get discouraged by the end of the year. Having a couple of eggs will give you some diversity and protect you should one sound looking company suddenly reveal some naughty habits of cooking the books. While you take care of steps 1-5, study up and find several eggs that you think you like. You never know, b/w now and the time you get to step 6, that company might just go on sale (ie drop in price despite solid earnings, it happens and give you an opportunity to buy a stock cheaper than its real value)

medford
05-02-2012, 06:41 PM
I have a handful of higher yield dividend stocks in my roth IRA. There are a handful of real estate companies that have been beaten down due to the market (and perhaps they're own balance sheets during this downturn) that are now starting to bounce back. REITs by nature have to offer out a high % of their profits in dividends to remain classified as a REIT and the tax breaks that come with it. You should be able to find a package of companies here that offer solid dividends that are now poised to bounce back (if they haven't done so already) that can offer a little growth as well.

There are also some areas outside of REITs, one of my favorite stocks has been a small company called Medallion Financial (TAXI) which specializes in medallion loans in NYC. They've regularly paid out an above 5% dividend thru all of the markets up & downs.
I'm hardly a professional, most of my retirements is funded thru my 401(k), actually my IRA recieves mostly just maintance work for the time being, but I've used my dividend stocks to help fund further purchases of stock when the market tumbled to cost average down.

While we're talking stocks and dividends, just want to share my glee to have just found out (they reported 1st quareter results this morning) that TAXI has increased dividends 24% to $0.21 a share for the 1st quarter. yeah me :)

JaxRed
05-02-2012, 06:45 PM
While we're talking stocks and dividends, just want to share my glee to have just found out (they reported 1st quareter results this morning) that TAXI has increased dividends 24% to $0.21 a share for the 1st quarter. yeah me :)

Way to go...

bucksfan2
05-03-2012, 09:40 AM
I guess it would be helpful to define DRIP. Its a dividend reinvestment program. It usually takes a phone call to set it up, and any dividend that is paid is automatically converted to shares of that company. Its compounding interest with stocks. Conventional wisdom is you reinvest your dividends until the time comes when you need the income flow that dividend stock provide.

Altria (MO) is a great dividend payer but it also is raises an interesting question. Are you ok investing in a tobacco stock, even if you don't agree with tobacco and realize the effects it has.

medford
05-03-2012, 09:55 AM
I think I'd rather have Phillip Morris international for the long run than Altria right now. Actually I do, I sold off MO and the Kraft spin off some time ago and held onto the Phillip MOrris International (PM) spin off. MO has been very good to me over the years, steady stream of dividends and I made a pretty nice profit off of MO, Kraft and now PM

lidspinner
05-03-2012, 01:01 PM
Wow....tons of info. Medford....here is a little background

35 years old
Wife and kid..teenager
I have a pers and a deferred comp program for retirement right now
The 100 dollars is basically what I have that is not put in savings, it's kind of what I call my monthly waste money....after everything is all said and done each month I usually find an extra $100 in my checking account.....that why I wanted to start with that...that way if I lose it all on stupid moves I won't feel so bad....I could do more but I am not comfortable doing that at this time, maybe when I learn more and feel a little better about investing I might add to that number, just not at this stage in the learning process...

I will however start with talking to my HR people and see if I am taking advantage of all my options at work before I start to invest anywhere else. I agree that is smart. I have no issue talking to them and sounding dumb, trust me.....I have spent 15 years not knowing where my money goes, the only embarrassing part is not doing this sooner.

Keep the advice coming. I studied some online sites about drips last night.

Oh yeah, I did the Dave Ramsey class through my church....great program, lots of common sense stuff that most people don't consider but his program is great.

We have a mortgage and 2 small credit cards that don't even equal 1k....we pride ourselves on little to no debt....we own both vehicles. We have a small savings account that we have for our teenager for college.....it's under 20k and I refuse to touch that unless it's a guaranteed program.

Any other advice is great.....keep em coming, I will watch this thread daily.

JaxRed
05-03-2012, 01:29 PM
The chances of losing all your money is incredibly remote as long as you stay out of stuff like options.

Many people think a pullback is coming since stocks are pretty high right now. So a bad pullback might be 25% or so.

bucksfan2
05-03-2012, 01:32 PM
I think I'd rather have Phillip Morris international for the long run than Altria right now. Actually I do, I sold off MO and the Kraft spin off some time ago and held onto the Phillip MOrris International (PM) spin off. MO has been very good to me over the years, steady stream of dividends and I made a pretty nice profit off of MO, Kraft and now PM

I decided to do the moral thing and buy PM because it didn't effect any Americans! I owned MO for a couple of years, loved the dividend, sold it because I thought it had hit the top end of its range. It was a mistake because I could have held onto it and just collected the 6%. I picked up PM because of the growth as well as the growing dividend.

I haven't really read or follow much of Dave Ramsey. I have just heard that he can get extreme. Some people need that type of advice to get their finances in order. But what I have found out is that in even some of the bad investment books I have read (there are many) you can find good solid advice in them.

medford
05-03-2012, 02:20 PM
bucksfan2,

I caught a bit of Dave's radio show the other evening. Someone was calling in w/ a question about travel to see family or whatever. Anyways, as the conversation went on, Dave made the point that he likes his system to be tough, to force people from expering debt before vacations and what not, so that they can learn to live at their true minimum and feel the freedom of financial independence once they get rid of that debt.

thought of another book that I've read aside from the Peter Lynch stuff was a book called buffetology (or something like that) by Warren's former daughter in law. She allegedly takes you thru the practices that she picked up from Warren during the time she was married to his son. I don't know how true that is, but there is a lot of good stuff in there about valueing companies.

Speaking of Lynch, he often wrote about the value in finding smaller local companies that you have a feel in that have room to grow, restaurants being one of them. I'm still kicking myself for not buying Chipotle however many years ago after McDonald's spun them off and they fell into the upper 30s/lower 40s range. I thought they were a tade bit overpriced, but certainly fit all the criteria that lynch laid out years ago. Now that they sit above 300, closing in on what would have been a 10 bagger, wish I would have bought some back then. Live & learn.

lidspinner
05-04-2012, 09:58 AM
I have a family member who "got rich" from Chipotle and when I asked him why he put so much money in them when they were "young" he said...."I liked their food"....he started with just a little bit and as they started to grow he started putting all his eggs in their basket....I understand that is the wrong way to invest but it worked for him and he laughs every time we talk about it....he truly invested in them cause he truly liked their food....

Medford.....what are your thoughts on buying penny stocks? i have been reading several online message boards and have read where some people are suggestion you start out with penny stocks and learn the game from that standpoint.....not sure if I even agree with that, maybe I could understand it if I was only interested in trading stocks, but I am wanting to "invest", not just trade stocks.

so at the age of 35, if I started with DRIPs and kept this poilcy going till I retire at the age of 55, would I be able to see a good chunk of money made from that in 20 years of doing that? I hope that makes sense.....

my wife and I both started in PERS and deferred comp when we were 21 and started our careers, we both will be elgible to retire at 55 with full benefits from pers and our goal is to walk away from work at 55 and not look back.....we dont want to be the people who work past retirement because we HAVE to....if we work it will be cause we WANT to.....I think we both understand that with both our pers accounts and both deff comps we should be able to retire and live a good easy life......we want more....we want to be able to retire at 55 and live the good life with no financial strain whatsoever......so being that we are going to have 20 years in "investing", can we make decent money in 20 years? I understand that as I get older I am going to need to invest more than the 100/month.

medford
05-04-2012, 11:07 AM
How good are you at excel? Like easy excel calculations/tables? I'm sure you can find something similar on the web, but I set up a quick and easy calculation table. The nice thing about setting it up in excel is it allows me to quickly change the constants and the vairables. I'd be happy to send you it if you PM me your email address. I'll warn that its very quick/easy if you know even a little about excel you could create you own in 2 minutes, I'm sure there is something better on the net, but I'd be happy to send it along at any rate if you like.

Anyhoo, I put in some constants, basically putting in 1200 now (age 35) and ran it out 30 years. I assumed a 7% return (including dividends) and re-invested all dividends each year, plus an additional 1200 each season. Is it enough to retire? depends on what your needs are, and how much your PERS pays out at age 55 (or beyond)

Using just the 1200 a year, plus 7% return each year 20 years of savings at those returns will generate just under $53,000 at the age of 55. here is the value of compound interst, work another 10 years and achieve those same returns, and you're nest egg will be worth $121,000. Now, lets change things up a bit, lets say you cut out some things from your budget (you say you're tight to begin with, but could you find an extra $100 a month?) Lets bump that up to $2400 a year and still assume a 7% return. In 20 years, you'll have nearly $106,000, while in 30 years you'll have $242,000.

No imagine you had started that at 21 when you began working. You'd retire at 55 with $330,000 in the bank. Not bad. Enough to retire, depends on what you spend, how much your PERS is worth. I've read a retirement theory about the power of 20, or something like that. The theory is, take whatever your anticipated living expenses are at retirement and multiple it by 20. Then when you start retirment, take out 5% (1/20th) each year to live off of and invest the rest. The Motley Fool ran these numbers 10+ years ago when that site was fairly new, I'm sure its been done several times, but they tested it against the worst 20 year time frame (an expected number of years you spend retired before death) using the exact S&P 500 returns each year. I believe the time frame for the worst 20 year period started in the 70s, when over the course of 20 years, the S&P 500 was relatively flat. Even using that period, your return on investment using the rule of 20 you managed to make money before departing this world for whatever lies beyond.

If you need 50,000 a year to live at retirement, that would be $1,000,000 for your rule of 20 net value. I don't know how PERS works, if its like the STRS program that my wife has, you'll get paid a % of your 3 highest earning years. So if you're making $80k in 20 years, you'll get whatever % of that they give you as your pension, then you'll need to make up the rest thru Social Security and any additional investments. Going back to my 1st calculations, using $1200 a year and 7% returns (giving you $53,000) and applying the rule of 20, that would net you a little more than $2,650 a year in addition to PERS and social security.

Regarding your friend and Chipotle, "liking the food" is one of Peter Lynch's aspect, invest in what you know/like. Now just liking food somewhere isn't enough, you've got to put some work in, but certainly one reason why Chipotle sits above $400 a share today is because it has good food that people are willing to pay for despite lines often backed up to the door on a fairly regular basis and its been proven across many markets. However, you have one thing down that I like. It doesn't sound like your interested in "getting rich quick" not that that is a bad thing, just most people who get rich quick in the market, lose it just as quick, think of the tech bubble in the 90s where many stocks shot up above $100 but sit below $5 today. The best way to plan for retirement, the easiest way to plan for retirment, is to get rich slowly. Use the power of time to compound your interest, the earlier you start, the easier it becomes.

medford
05-04-2012, 11:10 AM
Penny Stocks, I've seen numbers that an overwhelming majority of stocks sitting below $10 never climb above that number. not that it doesn't happen, just that most penny stocks remain penny stocks until they move into bankruptcy. Investing is not "a game", I cringe at that notion every time I hear it. Warren Buffet didn't become a billionair by playing a game, he continually found great value in underperforming stocks and waiting for the market to catch up with the results of their business. He'll often buy and hold forever if he likes a company enough (like coke) knowing that a great company that stays a great company will continue to rise in value.

bucksfan2
05-04-2012, 11:59 AM
@lidspinner

I would be very wary of the PERS system right now. They are going to run out of money and the tough decisions are being kicked down the road. The problem for many like you (me 30) is that how long can you kick that can down the road? As of right now they are doing their best to honor their obligations. IMO that can't continue to happen and tough decisions are going to be made. I think you need to operate as if all the money you were promised won't exactly be there. Now that I am off my soap box......

I have never really heard anything good about penny stocks. Good solid stocks with solid dividends are a good way to invest in the market for me. But in the end its whatever works for you and what you are comfortable with.

BuckeyeRed27
05-04-2012, 12:03 PM
The other huge issue with penny stocks is the vast majority of them don't trade an an exchange. They trade on what's called the bulletin board or the pink sheets. What this basically means is that they aren't very liquid and when you buy and sell them the price you see isn't the price you're going to get. Penny stocks are a bad idea for a person just starting out.

JaxRed
05-04-2012, 01:48 PM
I also would absolutely avoid penny stocks. That is not investing. It is gambling.

lidspinner
05-05-2012, 12:46 AM
Guys, I've gotten more from here than I've gotten from 3 months on financial sites....

muddie
05-06-2012, 08:03 PM
Donald Luskin has an interesting take on the market going forward. This clip from the weekend edition of the WSJ. I found it interesting as there is a lot of talk about dividend investing here. I would be interested in you guys thoughts.

http://online.wsj.com/article/SB10001424052702304743704577381851218376744.html?g rcc=88888Z0ZhpgeZ0Z0Z0Z0Z0&mod=WSJ_hpp_sections_opinion

muddie
05-06-2012, 08:11 PM
The chances of losing all your money is incredibly remote as long as you stay out of stuff like options.

Many people think a pullback is coming since stocks are pretty high right now. So a bad pullback might be 25% or so.

The French have reverted back to a socialist government and Merkel's coalition may be in trouble. The Eurozone is going to be a headache for a while and I honestly don't see a good end to this drawn out mess. Spain is a big problem that will get bigger. Domestically, job growth is slowing down. I think a near term pullback is realistic based on all these problems. Isn't this fun!

JaxRed
05-06-2012, 11:37 PM
I'm a major proponent of doing the Dividend Growth investing within an IRA. So the dividend tax increase won't affect me directly..

But a declining market (as last week was) and maybe in the next few weeks does not affect my investing portfolio. My goal is to have a consistent dividend stream. A down market does not affect that dividend stream.

BuckeyeRed27
05-07-2012, 12:43 AM
I'm a major proponent of doing the Dividend Growth investing within an IRA. So the dividend tax increase won't affect me directly..

But a declining market (as last week was) and maybe in the next few weeks does not affect my investing portfolio. My goal is to have a consistent dividend stream. A down market does not affect that dividend stream.

It could eventually. That dividend is a function of the underlying stock price.

I think people are buying dividend stocks due to low yields in less risky investments. That's fine for now but I think will create a small bubble that will correct in a year or two when rates come up.

I don't see the French or rest of the EU stuff having a major impact on our market. Possible short term news pullback but nothing prolonged. If anything it will create a nice buying opportunity.

bucksfan2
05-07-2012, 09:24 AM
Guys, I've gotten more from here than I've gotten from 3 months on financial sites....

I was thinking about this the other day. Some of my most valuable advice has come from smart people. People who have success in the market and know what they are talking about. Im not talking about the Warren Buffets of the world, but maybe the people in charge of your 401K, friends who have done well in the market, etc. They are the people who have been through the ups and downs of a market and can look back in hindsight and tell you what they did or what they should have done. There is invaluable advice you can get from those types of people.

As for France and Greece it will create some noise over here in the US. At the end of the day I still think the Euro continues down the same path. It probably will drive the US market down but will also create a buying opportunity.

JaxRed
05-07-2012, 10:27 AM
Just got a Dividend raise of 7.1% from Intel !!

kaldaniels
05-07-2012, 10:34 AM
Tip of the hat to all on here for some good advice, especially Medford with a nice post on page 2. :beerme:

foxfire123
05-10-2012, 10:46 PM
Question, if you don't mind me hijacking the tread a bit.

What kind of long term capital gains taxes can I expect on a sale of stock purchased for about $1380, with a net gain of about $4180. 15% tax bracket (thank goodness for being poor! lol!)

kaldaniels
05-11-2012, 12:05 AM
Question, if you don't mind me hijacking the tread a bit.

What kind of long term capital gains taxes can I expect on a sale of stock purchased for about $1380, with a net gain of about $4180. 15% tax bracket (thank goodness for being poor! lol!)

I'm gonna dive in here possibly over my head, but I believe it would simply be 15% of your profit, which is $627. Correct me if I'm wrong, but everyone pays 15 percent on long term capital gains (in your example you would have had to own the stock for over 1 year), no?

kaldaniels
05-11-2012, 12:05 AM
Any predictions on the Facebook IPO? Not that any of us can get in on it early...unless oneupper has a connection? :D

bucksfan2
05-11-2012, 09:59 AM
I'm gonna dive in here possibly over my head, but I believe it would simply be 15% of your profit, which is $627. Correct me if I'm wrong, but everyone pays 15 percent on long term capital gains (in your example you would have had to own the stock for over 1 year), no?

As long as everything is long term I think its just 15%. If you have any dogs you may be able to off set some capital gains with losses.

As for Facebook I may davel in it. Its the hottest IPO in recent history and I have a feeling its going up for a while. Its one of those things that I can buy at a discount brokerage where you can get in and out fairly quick. If I do anything it will be a pure trade instead of an investment.

oneupper
05-11-2012, 11:59 AM
Any predictions on the Facebook IPO? Not that any of us can get in on it early...unless oneupper has a connection? :D

E*Trade is actually in on the deal and offering to clients. I put in an order for the wife's IRA. (She uses it more than I do. LOL).
I thought Schwab, TD Ameritrade, etc were going to get an allotment, too,

The main guys are Morgan Stanley, Goldman, JPM, Merrill and Barclays. So if you have an account with them you can certainly ask.


Found this list..
Underwriters for Facebook's IPO


-- Morgan Stanley & Co.

-- J.P. Morgan Securities

-- Goldman Sachs Group

-- Merrill Lynch

-- Barclays Capital Inc.

-- Allen & Co.

-- Citigroup Global Markets Inc.

-- Credit Suisse Securities (USA)

-- Deutsche Bank Securities Inc.

-- RBC Capital Markets

-- Wells Fargo Securities

-- Blaylock Robert Van

-- BMO Capital Markets Corp.

-- C.L. King & Associates Inc.

-- Cabrera Capital Markets

-- CastleOak Securities

-- Cowen and Co.

-- E-Trade Securities

-- Itaú BBA USA Securities Inc.

-- Lazard Capital Markets

-- Lebenthal & Co.

-- Loop Capital Markets

-- M.R. Beal & Co.

-- Macquarie Capital (USA) Inc.

-- Muriel Siebert & Co. Inc.

-- Oppenheimer & Co. Inc.

-- Pacific Crest Securities

-- Piper Jaffray & Co.

-- Raymond James & Associates Inc.

-- Samuel A. Ramirez & Co. Inc.

-- Stifel, Nicolaus & Co. Inc.

-- Williams Capital Group

-- William Blair & Co.


In any case, it won't be cheap. It's supposed to price between 28 and 35. I'm hoping lower and that my wife actually gets some.

oneupper
05-11-2012, 12:01 PM
As for Facebook I may davel in it. Its the hottest IPO in recent history and I have a feeling its going up for a while. Its one of those things that I can buy at a discount brokerage where you can get in and out fairly quick. If I do anything it will be a pure trade instead of an investment.

http://ia.media-imdb.com/images/M/MV5BMTc3NTM4NTMwOF5BMl5BanBnXkFtZTcwMjM1Mjg4NA@@._ V1._SY317_.jpg

JaxRed
05-16-2012, 10:50 AM
Let me say as a proponent of Dividend Growth Investment, I would have absolutely no interest in Facebook. It doesn't fit in with my investment philosophy.

I also think it's pretty much "gambling". It's a "hot" commodity. 2 years from now people might be saying that they are so lucky they got in at the ground floor, or they might be saying they can't believe they bought at the top of the bubble.

JaxRed
05-16-2012, 10:57 AM
I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. :) About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

gonelong
05-16-2012, 01:01 PM
I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. :) About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

That's my plan as well. Amass a tidy sum invested in stock with a history of dividend growth and hopefully never touch the original investments.

My plan is in place and in progress. In concert with my plan is to continue to provide my son with an understanding of financial matters. He turns 9 in September, I am thinking about buying him a dividend paying stock so he can get a look into how those work. $500 now might be worth $800-$1000 by college time, but it will be worth more as a learning tool IMO.


[OFF TOPIC RANT]
My wife's sister is in a perpetual state of finanical crisis ... almost all of it completely and utterly self inflicted. It's no way to live life IMO. Take what you have and make it work for you as best you can. I didn't get a financial education either, I sought it out myself after being tired of always being behind the 8-ball financially. I am determined to pass these things along to my son.

If I can manage to live soley of dividends when I retire then I can pass the original investment to my offspring. That is how you begin generational wealth and I hope I am able to get that started for my family tree.

In order to keep it rolling your kids need to understand it. I have been working on financial concepts with my son, who is now 8. He *earns* an allowance, but only if he completes his assigned tasks for the week. He has to save at least 25% (sometimes he saves more voluntarily). When he deposits his savings into the credit union, I match the total. He has built up a nice little sum.

He understands that by saving his money it allows the bank to loan it to his neighbor to build a house, buy a car, or start a business. That person pays the money back, with interest. The bank gives him some of the interest and keeps the rest as profit. [ok, that's a bit flowery, but close enough]

Recently we took a look at his bank statement and I showed him how his interest payments had been increasing over time and asked why he thought that might be. "My interest is making interest now?". BINGO! A few words about compound interest over time and he has the concept.

He is allowed to spend 50-75% of his earned allowance on pretty much whatever he wants. The occasional ice cream cone, toys, video games, etc. He has occasionally bought some junk - and realized that a fool and his money are soon parted. He now understands how advertising works and he often seeks Mom and Dad's council before he makes a purchase. :) He has also saved for larger ticket items, sometimes eschewing short-term wants in favor of his long-term goal (though not always). I think he is well on his way, and is light years ahead of where I was at his age.

I learned many of these financial lessons in earnest between the ages of 26-30, more often than not the hard way.

[/OFF TOPIC RANT]GL

bucksfan2
05-16-2012, 03:53 PM
I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. :) About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

Nice. Your an old fart though :p. Thats eventually my plan but I have a long time until then.

Just recently I have been lightening up on some of my stocks that have had a nice run and didn't really have any dividend protection. This Greece situation isn't going away anytime soon and we have seen the same thing happen the past two summers where the Greeks (and other Europeans) begin to act up.

I have a few dividend paying stocks picked out and ready to go if the market takes a little dip here.

medford
05-16-2012, 04:47 PM
I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. :) About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

I'm not sure why anyone would object or take that badly. I think its good advice/experience to share for anyone that reads the title of this thread and thinks it might be worthy.

JaxRed
05-17-2012, 01:22 AM
By the way..... JC Penney had it's worst day ever on the stock market. It lost 20% of it's value and did away with it's dividend.

Just goes to show you how good our advice was......

Don't buy Penney stocks :thumbup:

JaxRed
05-18-2012, 08:30 AM
Ugly last few days on Wall Street. However, nothing has occurred that has changed my income stream from Dividends.

That's the beauty of being a Dividend Investor.

JaxRed
05-21-2012, 02:25 PM
Nice. Your an old fart though :p. Thats eventually my plan but I have a long time until then.

Just recently I have been lightening up on some of my stocks that have had a nice run and didn't really have any dividend protection. This Greece situation isn't going away anytime soon and we have seen the same thing happen the past two summers where the Greeks (and other Europeans) begin to act up.

I have a few dividend paying stocks picked out and ready to go if the market takes a little dip here.

You had your little dip..... did you buy? By the way, the smart plan is not switch to Dividends once you get to be an old fart. The smart plan is invest for dividends all along.

bucksfan2
05-21-2012, 03:00 PM
You had your little dip..... did you buy? By the way, the smart plan is not switch to Dividends once you get to be an old fart. The smart plan is invest for dividends all along.

I was tempted to late Friday but I held off. I just wanted to see some stability without violent Greek swings. I invest pretty much in everything that is a dividend payer but I go out on a limb occasionally and buy a stock with no dividends or a very low dividend because I like the growth potential. The problem is the don't have that downside portection and they don't pay you during a down market.

JaxRed
05-23-2012, 09:57 AM
Let me say as a proponent of Dividend Growth Investment, I would have absolutely no interest in Facebook. It doesn't fit in with my investment philosophy.

I also think it's pretty much "gambling". It's a "hot" commodity. 2 years from now people might be saying that they are so lucky they got in at the ground floor, or they might be saying they can't believe they bought at the top of the bubble.

Well, it certainly appears at this early point that Facebook was a mistake to get into. Down 18% from it's IPO price and 26% from it's initial post IPO price.

bucksfan2
05-23-2012, 10:47 AM
Well, it certainly appears at this early point that Facebook was a mistake to get into. Down 18% from it's IPO price and 26% from it's initial post IPO price.

Facebook's IPO came at the wrong time and was mishandled. It came at a time when the market was acting irrationally to Greece and was driven down further by a the disaster of its IPO pricing. Once it finds some firm footing I think it will be just fine.

Two things that I like about Facebook:
1. Zuckerberg
2. The number of members would be the 3rd largest country in the world. If they find a way to monetize that it really could jump, especially if they find a way to monetize the mobile app.

oneupper
05-23-2012, 12:38 PM
Well, it certainly appears at this early point that Facebook was a mistake to get into. Down 18% from it's IPO price and 26% from it's initial post IPO price.

I put in for 500 for my wife's IRA and got only 100 shares. I consider that fortunate.

I think the FB effect was underestimated by many. It was a huge offering of fresh equity into a thin market. It drained much of the demand for shares that might be out there.

It will take a few months to work that off and unfortunately, we're entering a seasonally soft period.

bucksfan2
05-23-2012, 12:59 PM
@oneupper, I saw the other day that Germany is selling 0 coupon bonds. Wait, what? Why would anyone want to buy that? Is it a play on currency?

oneupper
05-23-2012, 01:49 PM
@oneupper, I saw the other day that Germany is selling 0 coupon bonds. Wait, what? Why would anyone want to buy that? Is it a play on currency?

Nah. They're sold at a discount. There's an implicit yield. The US treasury has sold them too at time, IIRC.

BuckeyeRed27
05-23-2012, 03:53 PM
Nah. They're sold at a discount. There's an implicit yield. The US treasury has sold them too at time, IIRC.

And yet you still get to pay taxes on your "phantom interest". Good play in an IRA though, although probably not right now.

oneupper
05-23-2012, 07:34 PM
And yet you still get to pay taxes on your "phantom interest". Good play in an IRA though, although probably not right now.

Bonds in general make good plays in IRAs due to the taxes, particularly those with high current yields.
In taxable accounts, dividend stocks (common or preferred) can be a better fit since that income is taxed at a lower rate for most people.

bucksfan2
06-01-2012, 03:10 PM
Yikes..... Its been a tough month and June hasn't started out so hot.

oneupper
06-01-2012, 06:28 PM
Yikes..... Its been a tough month and June hasn't started out so hot.

Brutal. :(

bucksfan2
06-03-2012, 06:29 PM
I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. :) About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

How exactly did you use your dividend strategy. Did you accumulatet money and then every so often invest in a dividend stock of choice? Did you have a number of holdings that you would add to when they got to a certain price? I am curious as to how you added to your holdings? For the most part I have my portfolio of dividend stocks set but I am trying to figure out what to do with the cash when I get it into my portfolio. I have 30+ years until retirement so I want to keep about 90-95% invested.

JaxRed
06-05-2012, 07:26 PM
I am a recent convert to Dividend Investing. So for years I pumped money into mutual funds. And I had 401K equivalent doing the same thing.

So I was able to accumulate money by sheer force (constant contributions). But.... as a example of the mutual fund story over the last decade, at one point we put about $3,000 in a Roth IRA. We are transferring the money now to our brokerage Roth account.... and it was worth about $3,200 bucks.

People that follow the stock market have referred to the last 10 years as "the lost decade". Things go up, things go down, and they end up the same.

Which is why I am now officially in the Dividend Growth Club. There are very interesting discussions going on over at Seeking Alpha Specifically this area http://seekingalpha.com/dashboard/investing_income)

One of the items of discussion is about whether to reinvest dividends automatically, or let them accumulate for the right moment.

I'd probably let them reinvest in your situation.

The Dividend Growth people are licking their chops over this market

gonelong
07-19-2012, 01:20 PM
Mentioning REITS.... one of my favorite's right now is OHI - Omega Healthcare Investors Inc. Going Ex-Dividend in the next couple days. Paying 7.9% right now. Been increasing dividends yearly since 2003

Researched, then purchased this a few days after you posted it. Sold today for ~14.5% gain (~77.5% annualized). ($20.94/$23.97)

I use a few charts to assist me on the timing of buy/sells (not what to buy/sell, just the timing) and I believe they are due for a 10%+ pullback and will be hoping to see them around 22.00 to evaluate for re-entry. I suspect this means I will miss the next dividend payment in August which is not really what I want. Time will tell. :help:

GL

/thanks for the idea

gonelong
07-19-2012, 01:24 PM
Also found this site recently.

http://dripinvesting.org/tools/tools.asp

Check out the excel spreadsheet (all tabs) under

Information
U.S. Dividend Champions

GL

JaxRed
07-20-2012, 11:45 PM
Researched, then purchased this a few days after you posted it. Sold today for ~14.5% gain (~77.5% annualized). ($20.94/$23.97)

I use a few charts to assist me on the timing of buy/sells (not what to buy/sell, just the timing) and I believe they are due for a 10%+ pullback and will be hoping to see them around 22.00 to evaluate for re-entry. I suspect this means I will miss the next dividend payment in August which is not really what I want. Time will tell. :help:

GL

/thanks for the idea

Glad it worked !!

JaxRed
07-20-2012, 11:56 PM
In case anyone noticed....my Facebook advice was pretty good also..

muddie
07-22-2012, 10:08 PM
Is there anywhere someone could go and learn what municiple bonds were being issued and when? I know there are some pretty good opportunities here and many funds offer them. Would it be possible to do this yourself? Where to look? Thanks all.

BuckeyeRed27
07-22-2012, 10:15 PM
Is there anywhere someone could go and learn what municiple bonds were being issued and when? I know there are some pretty good opportunities here and many funds offer them. Would it be possible to do this yourself? Where to look? Thanks all.

Most online brokers will have a way to search for muni's. There isn't a way to really search for new issues unless they have just been announced. You just have to keep checking. When a new issue is announced there is an advertisement and an indication of interest period that goes on before they set the yield for each time period being offered based on how many people buy the bonds.

If you are looking to buy in the secondary market that is not the case, but I would be very careful and probably use a broker that you trust. Fixed income trading is probably the top way that normal investors get screwed.

JaxRed
07-22-2012, 11:09 PM
Is there anywhere someone could go and learn what municiple bonds were being issued and when? I know there are some pretty good opportunities here and many funds offer them. Would it be possible to do this yourself? Where to look? Thanks all.

Not that it answers your questions.... but I personally would not be a big fan of Muni Bonds. For a couple reasons.... there's a big debt bomb building toward an explosion at some point. And the only real solution is inflation. Reduce the cost of debt by inflating the currency. Bonds is not a good place to be when that happens.

Secondly, the Feds are going to be looking for all sources of income. I personally think Social Security will be means tested. And I think they will see all the income that could be raised by removing the tax exemption on municipal bonds. That would really lower their value.

bucksfan2
07-23-2012, 09:35 AM
Is there anywhere someone could go and learn what municiple bonds were being issued and when? I know there are some pretty good opportunities here and many funds offer them. Would it be possible to do this yourself? Where to look? Thanks all.

Call up a broker. I know with TD Ameritrade they have a bond wizzard function where you can look up individual bonds. I just know from experience that my uncle has a muni bond latter that when one comes due he calls up a broker and buys another one.

I differ a little from Jax I don't think the feds are going to touch the interest payments. If you live in California I would be very hesitant to buy muni's becasue I think you will see some more of the municipalities default in the near future. Most of what I have heard is buy Muni's that are backed by the ability to tax. You won't see those bonds default.

If you wanted to go a different route you can buy a muni bond fund. I own one in Ohio and it pays a nice monthly tax free dividend.

mdccclxix
07-23-2012, 02:12 PM
Without reading this whole thread, I want to ask a question. I had a thought occur to me yesterday that if you picked a stock that was clearly down, or well below it's all time high, just one stock, bought in full fledged, waited for it to go up a set amount even if it took years, sell, then find another stock, what could go wrong other than the stock dying or going totally limp forever? When does patience not payoff in this regard?

BuckeyeRed27
07-23-2012, 03:02 PM
Not that it answers your questions.... but I personally would not be a big fan of Muni Bonds. For a couple reasons.... there's a big debt bomb building toward an explosion at some point. And the only real solution is inflation. Reduce the cost of debt by inflating the currency. Bonds is not a good place to be when that happens.

Secondly, the Feds are going to be looking for all sources of income. I personally think Social Security will be means tested. And I think they will see all the income that could be raised by removing the tax exemption on municipal bonds. That would really lower their value.

Bonds almost throughout history have yielding slightly above inflation. I guess to your point I wouldn't go buying long term bonds right now, but there are plenty of good reason to buy bonds.

Munis are fine as long as they are tax backed or GO bonds. They get a little more dicey when they are RO or project based.

BuckeyeRed27
07-23-2012, 03:05 PM
Without reading this whole thread, I want to ask a question. I had a thought occur to me yesterday that if you picked a stock that was clearly down, or well below it's all time high, just one stock, bought in full fledged, waited for it to go up a set amount even if it took years, sell, then find another stock, what could go wrong other than the stock dying or going totally limp forever? When does patience not payoff in this regard?

Information is the problem. How do you know the stock is going to go up? There are lots of stocks that have lost tons of value and haven't and may never get back to prices that they traded at at one point. Growth investing tries to do what you are talking about, but trust me it is very difficult.

There is also the enormous risk of just buying one stock and not diversifying out into several holdings.

mdccclxix
07-23-2012, 04:06 PM
Information is the problem. How do you know the stock is going to go up? There are lots of stocks that have lost tons of value and haven't and may never get back to prices that they traded at at one point. Growth investing tries to do what you are talking about, but trust me it is very difficult.

There is also the enormous risk of just buying one stock and not diversifying out into several holdings.

True, I know that diversification is recommended, but at the same time it can weigh you down, right? This goes up, that goes down. But picking a stock that has a solid reputation and a solid future in terms of where the world is going, that is also on a down beat, could pay off if you're patient. That said, a) I'm young and not risk averse b) I set up a fake portfolio at google finance in 2009 when everything was down and went 9 for 10 in picking winners, so that's not likely to be as easy as it was then.

gonelong
07-23-2012, 04:53 PM
True, I know that diversification is recommended, but at the same time it can weigh you down, right? This goes up, that goes down. But picking a stock that has a solid reputation and a solid future in terms of where the world is going, that is also on a down beat, could pay off if you're patient. That said, a) I'm young and not risk averse b) I set up a fake portfolio at google finance in 2009 when everything was down and went 9 for 10 in picking winners, so that's not likely to be as easy as it was then.

Fairly recently, ENRON, Fannie Mae, Freddie Mack, etc. - you just never really know what is lurking behind the curtain.

Don't put all your eggs in one basket. :)

GL

oneupper
07-23-2012, 09:41 PM
True, I know that diversification is recommended, but at the same time it can weigh you down, right? This goes up, that goes down. But picking a stock that has a solid reputation and a solid future in terms of where the world is going, that is also on a down beat, could pay off if you're patient. That said, a) I'm young and not risk averse b) I set up a fake portfolio at google finance in 2009 when everything was down and went 9 for 10 in picking winners, so that's not likely to be as easy as it was then.

You know, this goes totally "against the book" on investing, but it is something that as a young investor you can afford to take that chance on.
If there is something that looks "so right" that you can put a big chunk of your investable assets into it, do it. You'll kick yourself later if you didn't.

The reason is that you can expect to continue to earn (and save for retirement) for the next 30 years. As you age, you can become more conservative. Want to take a shot? Now's the time.

I'm in my 50s now, and most of my clients are also, but in my 20s and 30s I took a number of flyers. Some paid off spectacularly (I made out like a bandit in the Venezuelan stock market in 1990-1 and turned my meager savings into a fully paid condo) and others not so much (I joined a group trying to take over a ceramic tile producer...crappy group, crappy industry, crappy company, crappy result...). And lots of stuff in between...

Thing is...if you have skills to fall back on and manageable responsibilities , you can be looser with your investments when you're young.

And...you can't tell anyone I said any of this, the investment advisory community would kick me out immediately.:D

JaxRed
07-24-2012, 11:51 AM
True, I know that diversification is recommended, but at the same time it can weigh you down, right? This goes up, that goes down. But picking a stock that has a solid reputation and a solid future in terms of where the world is going, that is also on a down beat, could pay off if you're patient. That said, a) I'm young and not risk averse b) I set up a fake portfolio at google finance in 2009 when everything was down and went 9 for 10 in picking winners, so that's not likely to be as easy as it was then.

May we ask what stock this is?

bucksfan2
07-24-2012, 02:30 PM
You know, this goes totally "against the book" on investing, but it is something that as a young investor you can afford to take that chance on.
If there is something that looks "so right" that you can put a big chunk of your investable assets into it, do it. You'll kick yourself later if you didn't.

The reason is that you can expect to continue to earn (and save for retirement) for the next 30 years. As you age, you can become more conservative. Want to take a shot? Now's the time.

I'm in my 50s now, and most of my clients are also, but in my 20s and 30s I took a number of flyers. Some paid off spectacularly (I made out like a bandit in the Venezuelan stock market in 1990-1 and turned my meager savings into a fully paid condo) and others not so much (I joined a group trying to take over a ceramic tile producer...crappy group, crappy industry, crappy company, crappy result...). And lots of stuff in between...

Thing is...if you have skills to fall back on and manageable responsibilities , you can be looser with your investments when you're young.

And...you can't tell anyone I said any of this, the investment advisory community would kick me out immediately.:D

Don't you think the investment advisory community would be better off if they were more brutally honest? In all the books and magazines I read you hear pretty much the same thing over and over again. Diversify your portfolio, make sure all your eggs aren't in the same basket, etc. While I agree with many of those notions, I think you need to have some of your portfolio with speculative stocks. IMO its much easier with the discount brokers because trades cost anywhere from $5-$10 as opposed to $75-$100 with a full service brokerage. You can take a flier on a stock and if it tanks you can move out pretty easily.

There is a ton of money to be made out there, but often times it takes a great deal of risk in order to make money. I am young and for the most part I prefer a dividend portfolio approach but I also put a certain percentage aside for more risky ventures.

BuckeyeRed27
07-24-2012, 02:46 PM
Don't you think the investment advisory community would be better off if they were more brutally honest? In all the books and magazines I read you hear pretty much the same thing over and over again. Diversify your portfolio, make sure all your eggs aren't in the same basket, etc. While I agree with many of those notions, I think you need to have some of your portfolio with speculative stocks. IMO its much easier with the discount brokers because trades cost anywhere from $5-$10 as opposed to $75-$100 with a full service brokerage. You can take a flier on a stock and if it tanks you can move out pretty easily.

There is a ton of money to be made out there, but often times it takes a great deal of risk in order to make money. I am young and for the most part I prefer a dividend portfolio approach but I also put a certain percentage aside for more risky ventures.

The vast majority of people can't pick stocks. Average people trail the market and mutual funds typically by 5-15% depending on the index. I think it is fine for people to have a small portion to trade for themsevles, but speaking broadly and generally much people are better served by the old diversification approach.

That said I really like oneupper's post. I think if you're are young and have some cash there is something to be said for "going for it". It just isn't good investing.

medford
07-24-2012, 05:46 PM
Well one thing that can go wrong with waiting for a stock to rebound to its high, aside from the obviously already pointed out "it may never get back there", is that you could be missing out on a bunch of other opportunities along the way.

However, your line of thinking is on the right track (in my mind). The key questions to ask, is why is a stock off its high? What are the chances it returns to its high? Many stocks are knocked signficantly off their heigh by no reason of their own. How many stocks were cut in half in the recent market despite the company continuing to do solid business? How many stocks get hurt simply b/c a competitor is struggling in a fashion that may not relate to their company? Find opportunities and try to take advantage of them. Not all are going to work, so spread things around a bit, but its an approach that has well for guys like Ben Graham and Warren Buffett. If those 2 guys are proponents of something, its worth listening to.

JaxRed
07-31-2012, 08:43 AM
Well, going back to my philosphy of Dividend Growth Investing.... I had two more of my stocks raise their dividends this week. TICC (a business development company) and NNN (a property REIT).

mdccclxix
07-31-2012, 09:19 AM
May we ask what stock this is?

I don't have any in mind right now, but I'll share my fake google portfolio I created during the downturn in 2009. I haven't done anything to it since. I focused mainly on companies I thought had a good chance during a recession, which were cheap entertainment (TV, Internet) and car repair (people making a dollar stretch). I didn't think of Walmart and McDonalds, but I think they did well too.
http://i663.photobucket.com/albums/uu351/mdccclxix/portfolio.jpg

Actually, the last 4 lines were added after the initial batch. The blank one is (was) Kendal, a Cincinnati company a relative had stock in that I was watching for them. Not a real pick. The P&G stock was along those same lines, a family stock, not a real pick. The last two were a re-visitation of my effort to pick a single stock. This time I was just looking for a cheap one that was probably way off it's high. I had no clear signals guiding me, in fact the only thing I remember was ignoring the fact that Books-a million was doubling down on paper book stores instead of internet based ideas. They had the cash to do it. It's not working I guess. That was probably 18 months ago.

Anyway, the take away is really that anybody could have made a lot of great picks in 2009, sure, but there were a lot of solid companies that were undervalued and if you could find them now, just one really, that could simplify things.

One other thing I've tracked is Fedex/UPS stocks, which this time of year (come to think of it) are usually down a bit in price before they rise in the fall and winter for Christmas. Looks like that trend is flat right now or still coming, nevertheless those stocks are too expensive for me.

oneupper
07-31-2012, 09:59 AM
Viacom, Time Warner, Comcast AND CBS?
You should be getting free cable SOMEWHERE. :)

JaxRed
07-31-2012, 05:43 PM
Viacom, Time Warner, Comcast AND CBS?
You should be getting free cable SOMEWHERE. :)

It's a fake portfolio. He gets fake free cable. !!

Reds Nd2
07-31-2012, 10:39 PM
Researched, then purchased this a few days after you posted it. Sold today for ~14.5% gain (~77.5% annualized). ($20.94/$23.97)

I use a few charts to assist me on the timing of buy/sells (not what to buy/sell, just the timing) and I believe they are due for a 10%+ pullback and will be hoping to see them around 22.00 to evaluate for re-entry. I suspect this means I will miss the next dividend payment in August which is not really what I want. Time will tell. :help:

GL

/thanks for the idea

I think using technical analysis could be useful in finding entry/exit points, even if the overall strategy is buy and hold. My problem is that I'm not very educated on this. What charts do you use specifically and do you have any websites that you recommend for further study? Do you chart individual stocks or just the indexes?

UCBrownsfan
07-31-2012, 11:16 PM
Well, going back to my philosphy of Dividend Growth Investing.... I had two more of my stocks raise their dividends this week. TICC (a business development company) and NNN (a property REIT).

Jax - a strategy I tell my dad to use near retirement may be to buy dividend stocks, sell call options, and buy puts with the proceeds, this would band volatility.

Example if buying 1000 shares of Fifth Third (FITB) at 13.82, an annual dividend of $320 would be earned. 1000 Call options for Jan 17,2014 could be sold for $830 at $17 / share (capping the profits at $17 over the next year+) then with the proceeds put options could be bought at $10/share for $980. This would mean that the most you could gain is $3.20 / share and the most you could lose is $3.82 / share or less than 30% over the next year. If you aren't worried about the stock tanking selling options can be a way to generate income on the stock as well.

gonelong
08-01-2012, 01:15 PM
I think using technical analysis could be useful in finding entry/exit points, even if the overall strategy is buy and hold. My problem is that I'm not very educated on this. What charts do you use specifically and do you have any websites that you recommend for further study? Do you chart individual stocks or just the indexes?

The first thing to know is that technical analysis is only as good as the guy interpreting it. (Similar to a baseball scout, some are just better than others)

The second thing you need to understand, is what are you hoping to get from the charts. Are you looking to find a tech stock that is primed for a run? A long time dividend payer at a low? The charts you may use to track entries/exits for those kinds of opportunities are very different.

Once you understand what you are looking for, look for the indicators you think will give you this info. I like to look at stocks that pay a dividend and are beat down. I am looking for a turnaround so I can buy in early.

Here (http://stockcharts.com/school/doku.php?id=chart_school)is a good place to start understanding some basic charting/indicators. I would suggest starting with SMA and plot (3,13,50 for shorter term, and 20,40,200 for longer term) and check out some stocks you follow to see what it may/may not have told you.

I like to browse through these (http://stockcharts.com/public)and see how other people implement them.

The last thing to be aware of is time. Some people chart in minutes, others in days, others in weeks, months, years, or decades. If you use other peoples charts to make decisions, you will often be very wrong. If you use a chart and don't do due dilligence, you will very often be wrong.

I use them purely to decide when to buy sell, not what to buy sell.

GL

/That's my opinion, and probably exactly worth what I am charging for it.

Reds Nd2
08-14-2012, 02:27 PM
Thanks for the link Gonelong. I'll definantly check it out.

Anyone use the screens at AAII? (http://www.aaii.com/) I use to play around with them some and have been thinking lately about resubscribing.

I've always made the most money by using common sense to trade. I've always lost the most money by applying the same technique. :)

mdccclxix
08-14-2012, 02:39 PM
http://www.lendingclub.com/public/how-peer-lending-works.action

Anyone with stories about peer lending? I found this company. The returns look pretty good.

JaxRed
08-14-2012, 03:15 PM
That's interesting. I'll read up on it.

Edit: Guess I'll stop reading. Florida and Ohio residents aren't eligible



http://www.lendingclub.com/kb/index.php?View=entry&EntryID=113

oneupper
08-15-2012, 07:04 AM
That's interesting. I'll read up on it.

Edit: Guess I'll stop reading. Florida and Ohio residents aren't eligible



http://www.lendingclub.com/kb/index.php?View=entry&EntryID=113

What about Prosper.com? I signed up with them a couple years back, just to look. Never lent any money.

JaxRed
08-15-2012, 10:32 AM
A semi-quick check shows Prosper can take people from Florida but not Ohio.

JaxRed
09-22-2012, 10:33 AM
I wanted to get my adult daughter started on this path, so I have set up an actual Dividend Growth Portfolio for her with a $100 a month contribution. I will make it public and discuss it in another separate thread.

JaxRed
09-26-2012, 12:00 PM
Here's today's Stock Tip. Intel. A dividend growth stock beaten down to where it pays 4%. It hit $22.50 today.


An excellent buying opportunity.

bucksfan2
09-26-2012, 01:33 PM
Here's today's Stock Tip. Intel. A dividend growth stock beaten down to where it pays 4%. It hit $22.50 today.


An excellent buying opportunity.

I have debated buying INTC or a number of months now. For some reason I can just never pull the trigger. I just don't understand why INTC is priced where its priced at. Its a dividend grower in an industry that "should" see growth into the future, tech. It makes a product where the barriers of entry are very high and have even taken some market share in Apple products.

Right now it has a 4% yield and a P/E of 9.54 well below the market average. Its acting more as a utility than a tech stock or even a dividend paying stock. I agree that is is very attractive at this price, but I just don't understand why?

JaxRed
09-26-2012, 01:54 PM
Because people think the PC is dead. And most of their money comes from there.

Reds Nd2
09-26-2012, 10:54 PM
Intel, the world’s largest maker of computer chips, cut its third-quarter revenue projection Sept. 7, citing cautious customers and dwindling demand from emerging markets. Intel said it is “seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory, softness in the enterprise PC market segment and slowing emerging market demand.” Intel shares are down 7% in 2012.

http://www.marketwatch.com/story/7-global-companies-warn-tough-times-ahead-2012-09-26?link=mw_home_kiosk

JaxRed
01-06-2013, 11:17 AM
I was going to update this with a link about investing small amounts when getting started

http://seekingalpha.com/article/1096471-drip-investing-how-to-actually-invest-only-a-hundred-dollars-per-month?source=email_investing_income&ifp=0#comment_update_link

But it really doesn't apply within a Roth which is where people should be investing.

Intel by the way has not gone up (yet). It's gone down. It's gone down as low as $19.23. It's back to $21.16. I have picked some up. It's a 4.3% yield at this point.

I still think it is a great long term buy.

JaxRed
01-06-2013, 11:35 AM
Researched, then purchased this a few days after you posted it. Sold today for ~14.5% gain (~77.5% annualized). ($20.94/$23.97)

I use a few charts to assist me on the timing of buy/sells (not what to buy/sell, just the timing) and I believe they are due for a 10%+ pullback and will be hoping to see them around 22.00 to evaluate for re-entry. I suspect this means I will miss the next dividend payment in August which is not really what I want. Time will tell. :help:

GL

/thanks for the idea

OHI Update. OHI had a dip to about 21.30 afte the election, but they are back at $24.66 and after a dividend increase in Oct is still paying a sweet 7.1%

JaxRed
01-06-2013, 11:39 AM
Wow....tons of info. Medford....here is a little background

35 years old
Wife and kid..teenager
I have a pers and a deferred comp program for retirement right now
The 100 dollars is basically what I have that is not put in savings, it's kind of what I call my monthly waste money....after everything is all said and done each month I usually find an extra $100 in my checking account.....that why I wanted to start with that...that way if I lose it all on stupid moves I won't feel so bad....I could do more but I am not comfortable doing that at this time, maybe when I learn more and feel a little better about investing I might add to that number, just not at this stage in the learning process...

I will however start with talking to my HR people and see if I am taking advantage of all my options at work before I start to invest anywhere else. I agree that is smart. I have no issue talking to them and sounding dumb, trust me.....I have spent 15 years not knowing where my money goes, the only embarrassing part is not doing this sooner.

Keep the advice coming. I studied some online sites about drips last night.

Oh yeah, I did the Dave Ramsey class through my church....great program, lots of common sense stuff that most people don't consider but his program is great.

We have a mortgage and 2 small credit cards that don't even equal 1k....we pride ourselves on little to no debt....we own both vehicles. We have a small savings account that we have for our teenager for college.....it's under 20k and I refuse to touch that unless it's a guaranteed program.

Any other advice is great.....keep em coming, I will watch this thread daily.

So Spinner........ did you do anything with that $100 'mad money' yet?

gonelong
01-07-2013, 02:56 PM
OHI Update. OHI had a dip to about 21.30 afte the election, but they are back at $24.66 and after a dividend increase in Oct is still paying a sweet 7.1%

I got back in around $22, so I am pretty happy about that one. Probably to much risk (of it running away from me) for the small reward. I don't think I'll try that again.

GL

JaxRed
01-07-2013, 03:48 PM
I got back in around $22, so I am pretty happy about that one. Probably to much risk (of it running away from me) for the small reward. I don't think I'll try that again.

GL

Well played, Mauer.....

gonelong
01-16-2013, 04:47 PM
OHI Update. OHI had a dip to about 21.30 afte the election, but they are back at $24.66 and after a dividend increase in Oct is still paying a sweet 7.1%

OHI announced another increase today, from $.44 to $.45.

CLMT also increased recently from $.62 to $.65 and BGS from $.27 to $.29

Received a good number of special dividends in Dec. SCCO paid a $2.70/shr special dividend. :beerme:

Bought CBRL, WU, CA, and added to CLMT recently.

Looking seriously at AFL, NSC, WPZ among others.

GL

JaxRed
01-16-2013, 07:09 PM
OK, for OHI. $20 additional income a year. We own some CLMT also.

JaxRed
02-17-2013, 01:49 PM
We sold our CLMT to avoid the K-1 thing from here on out. Simple is better. OHI has done well. Besides raising the dividend, they had a nice earnings report and is up to $27.75

One of my favorite stocks.

Still hoping Lidspinner will take the plunge

UCBrownsfan
02-17-2013, 02:56 PM
My position right now is buying ZNGA, and selling the call.

ZNGA right now is at $3.20
The Jan 15 call, at $5 / share is at $.83

That means an immediate return of 25% on the stock with room for growth in the next 2 years of an extra 56%. With cash on hand of $1.67 / share, unless something goes seriously wrong the floor is $2.50 / share, and the ceiling is $5.83 / share... not a bad position for $3.20.

medford
03-05-2013, 06:14 PM
While we're talking stocks and dividends, just want to share my glee to have just found out (they reported 1st quareter results this morning) that TAXI has increased dividends 24% to $0.21 a share for the 1st quarter. yeah me :)

Another year (actually I guess it was 3/4 of a year since their last div increase), another quartley dividend increase, this time up to $0.22 a share (4.5% increase)

kaldaniels
03-07-2013, 12:49 AM
So what's the deal with Apple?

Dow (broader market I know AAPL is Nasdaq) at all time high
AAPL P/E at 9.7x
I believe the company has ~100.00 cash on hand per share

I know increased competition from Samsung and the like, but future earnings projections still seem robust.

Why is the stock so "cheap"?

JaxRed
03-07-2013, 08:48 AM
I'm a big fan of the Seeking Alpha site for financial discussion. Here's an article about Apple from a guy who runs a mock retirement portfolio.

http://seekingalpha.com/article/1189201-the-cost-of-product-cannibalization-dooms-apple-s-growth

He gets very defensive in some of the comments when challenged which isn't good but overall it's an interesting read. Basically he's saying it's no longer a growth stock. But he likes it as an income stock.

BuckeyeRed27
03-07-2013, 05:43 PM
I'm a big fan of the Seeking Alpha site for financial discussion. Here's an article about Apple from a guy who runs a mock retirement portfolio.

http://seekingalpha.com/article/1189201-the-cost-of-product-cannibalization-dooms-apple-s-growth

He gets very defensive in some of the comments when challenged which isn't good but overall it's an interesting read. Basically he's saying it's no longer a growth stock. But he likes it as an income stock.

It's hard to say that at this point. Even Apple doesn't know what it is going to do with that mountain of cash.

UCBrownsfan
03-12-2013, 05:54 PM
My position right now is buying ZNGA, and selling the call.

ZNGA right now is at $3.20
The Jan 15 call, at $5 / share is at $.83

That means an immediate return of 25% on the stock with room for growth in the next 2 years of an extra 56%. With cash on hand of $1.67 / share, unless something goes seriously wrong the floor is $2.50 / share, and the ceiling is $5.83 / share... not a bad position for $3.20.

It's up to $3.73, and the call is up to about $1.15 - it's been a great gain so far. There's 3 or 4 great strategies with options and ZNGA right now.

JaxRed
04-04-2013, 12:31 PM
Seeking Alpha has an article about Zinga

http://seekingalpha.com/article/1320481-zynga-is-no-longer-a-gamble-it-is-a-strong-buy-with-potential

redsfan4486
04-05-2013, 08:30 PM
A stock i really like is Qcom . Its chips are in smart phones and tablets from apple to samsung. 2% plus dividend and a history of raising it. And a stable growth stock with room to run.

JaxRed
06-30-2013, 11:40 AM
Qcom just raised their dividend this month

JaxRed
06-30-2013, 12:06 PM
forfreelin04 posted (in actual results thread)

"I don't want to steal JaxRed's thunder at all since he sounds highly educated in dividend paying investments, but dividends are never guaranteed.

If you have a stock that's in the red, and the only reason you have it is for the dividend yield I would caution you against holding it much longer. If NLY chooses to stop paying dividends, your not going to get your yield and subsequently you'll fade even deeper into the red since they'll be a mass exodus at that point.

There's nothing wrong with dividend stock investments. In fact, I would encourage it to the right investor. However, 95% of the country doesn't truly understand the risk involved. Many times retirees get their investment tips from the golf course instead of someone trained and licensed in the field. Certainly, dividend paying stocks are a nice diversification strategy to a balanced portfolio. The problem is many folks get in way too deep with money their actually planning on using in retirement.

It seems like JAXRED here is using the ROTH for his daughter. I don't know how old she is and if he's planning on using the funds for college for her, but in most scenario's people haven't saved enough for retirement to warrant the holding of individual stock's that pay beyond the norm in dividends."

1. First.... I am EXACTLY like taking advice from the guy at the golf course. (except I no longer play golf). Not certified in any way shape or form. Just a guy sharing advice based on years of life experience. I certainly differ from your advice on Dividends.

2. No.... dividends are not guaranteed. But except for federal bonds almost nothing is. It's a question of risk/reward. My advice (following the lead of the Dividend Growth investment community) is to invest in the stocks that make the list of the Dividend Champions, Challengers and Contenders. In the Champions list these are stocks that have raised Dividends for 25 consecutive years like Coke, McDonald's, Johnson and Johnson, etc. Buy the stocks, reinvest the dividends, don't worry about whether they are up or down. Monitor the income stream they are producing.

3. My daughter is 29. I am trying to get her educated/interested in Dividend Growth Investing for retirement purposes.

I am a proponent of Dividend Growth Investing. Forfreel prefers other investing techniques. Plenty of smart ways to invest. I do want to thank forfreel for posting and hopes he continues because the goal here is to make more people aware.

oneupper
06-30-2013, 12:36 PM
I like your strategy, JaxRed. What I like most about it is that you work at it, evaluate your performance on a regular basis and are always looking for new additions to improve your portfolio. That discipline pays off, regardless of your investing philosophy. (not that its a bad one).

I'll also confess to having "adopted" one of your ideas: OHI when it was in the low 20's and cashing out in the mid-30s. Thanks millions! (well, thousands, actually...).
I may be a "pro", but we can all pick up something from well-intentioned and well-informed sources. There is no way even the "pros" can be experts on every aspect of investing and personal finance. If you find one who sounds like he thinks he is, close your ears.

Good Job, JAX. Keep up the hard work. :)

forfreelin04
06-30-2013, 03:52 PM
forfreelin04 posted (in actual results thread)

"I don't want to steal JaxRed's thunder at all since he sounds highly educated in dividend paying investments, but dividends are never guaranteed.

If you have a stock that's in the red, and the only reason you have it is for the dividend yield I would caution you against holding it much longer. If NLY chooses to stop paying dividends, your not going to get your yield and subsequently you'll fade even deeper into the red since they'll be a mass exodus at that point.

There's nothing wrong with dividend stock investments. In fact, I would encourage it to the right investor. However, 95% of the country doesn't truly understand the risk involved. Many times retirees get their investment tips from the golf course instead of someone trained and licensed in the field. Certainly, dividend paying stocks are a nice diversification strategy to a balanced portfolio. The problem is many folks get in way too deep with money their actually planning on using in retirement.

It seems like JAXRED here is using the ROTH for his daughter. I don't know how old she is and if he's planning on using the funds for college for her, but in most scenario's people haven't saved enough for retirement to warrant the holding of individual stock's that pay beyond the norm in dividends."

1. First.... I am EXACTLY like taking advice from the guy at the golf course. (except I no longer play golf). Not certified in any way shape or form. Just a guy sharing advice based on years of life experience. I certainly differ from your advice on Dividends.

2. No.... dividends are not guaranteed. But except for federal bonds almost nothing is. It's a question of risk/reward. My advice (following the lead of the Dividend Growth investment community) is to invest in the stocks that make the list of the Dividend Champions, Challengers and Contenders. In the Champions list these are stocks that have raised Dividends for 25 consecutive years like Coke, McDonald's, Johnson and Johnson, etc. Buy the stocks, reinvest the dividends, don't worry about whether they are up or down. Monitor the income stream they are producing.

3. My daughter is 29. I am trying to get her educated/interested in Dividend Growth Investing for retirement purposes.

I am a proponent of Dividend Growth Investing. Forfreel prefers other investing techniques. Plenty of smart ways to invest. I do want to thank forfreel for posting and hopes he continues because the goal here is to make more people aware.

Actually I think your strategy is spot on Jax. My point was just that finance is not a one size fits all store. Your research is impeccable and your principles are great.

What's funny is that my post and my thread were shutdown without a PM or a warning. While you continue to give stock tips as an unlicensed person. It's not the Board or the mod who shut it down's fault; I take it as just another lesson that proves how incredibly flawed a persons thoughts are around investing and advisement. The idea of commission based income is hilariously misunderstood.

The fact that threads like mine were shutdown continue to actually help people in my field because most folks won't get the education around investing or life insurance on their own. Some will, but they'll trust their golf buddy before a person trained to give advice.

Finally to whoever actually shutdown my thread and my post from last week.... Thanks for letting me know!

JaxRed
06-30-2013, 09:09 PM
Maybe they thought my advice was so bad they didn't think it constituted advice....

forfreelin04
07-04-2013, 01:01 AM
Maybe they thought my advice was so bad they didn't think it constituted advice....

:laugh: who knows?

It's solid advice IMO

Redsfaithful
07-04-2013, 12:27 PM
Anyone have any thoughts on the Noodles & Co IPO?

I have most of my money in Vanguard admiral shares (the S&P 500 tracker) but I have a little set aside to mess around with and I'm thinking of buying some shares in the hope it could be a mini-Chipotle.

bucksfan2
07-05-2013, 10:29 AM
forfreelin04 posted (in actual results thread)

"I don't want to steal JaxRed's thunder at all since he sounds highly educated in dividend paying investments, but dividends are never guaranteed.

If you have a stock that's in the red, and the only reason you have it is for the dividend yield I would caution you against holding it much longer. If NLY chooses to stop paying dividends, your not going to get your yield and subsequently you'll fade even deeper into the red since they'll be a mass exodus at that point.

There's nothing wrong with dividend stock investments. In fact, I would encourage it to the right investor. However, 95% of the country doesn't truly understand the risk involved. Many times retirees get their investment tips from the golf course instead of someone trained and licensed in the field. Certainly, dividend paying stocks are a nice diversification strategy to a balanced portfolio. The problem is many folks get in way too deep with money their actually planning on using in retirement.

It seems like JAXRED here is using the ROTH for his daughter. I don't know how old she is and if he's planning on using the funds for college for her, but in most scenario's people haven't saved enough for retirement to warrant the holding of individual stock's that pay beyond the norm in dividends."

1. First.... I am EXACTLY like taking advice from the guy at the golf course. (except I no longer play golf). Not certified in any way shape or form. Just a guy sharing advice based on years of life experience. I certainly differ from your advice on Dividends.

2. No.... dividends are not guaranteed. But except for federal bonds almost nothing is. It's a question of risk/reward. My advice (following the lead of the Dividend Growth investment community) is to invest in the stocks that make the list of the Dividend Champions, Challengers and Contenders. In the Champions list these are stocks that have raised Dividends for 25 consecutive years like Coke, McDonald's, Johnson and Johnson, etc. Buy the stocks, reinvest the dividends, don't worry about whether they are up or down. Monitor the income stream they are producing.

3. My daughter is 29. I am trying to get her educated/interested in Dividend Growth Investing for retirement purposes.

I am a proponent of Dividend Growth Investing. Forfreel prefers other investing techniques. Plenty of smart ways to invest. I do want to thank forfreel for posting and hopes he continues because the goal here is to make more people aware.

I agree and for the most part follow your strategy.

The counter argument against dividend investment follows the mantra that no dividend is safe. If you look back 5 years you can recognize that, some of the best dividend paying stocks, big banks, were annihilated and saw their dividend slashed or eliminated all together. You also have a stock like GE, who was one of the most respected American company, have their dividend slashed for a number of years only to see it being increased again. If your time frame is decades then it will only look like a blimp on the radar. If your time frame is short then it could be devastating.

I have a couple of different thoughts on the Dividend Growth Investing. Buying companies like Coke, McDonalds, and JNJ are good ideas. But if you look at some of the well managed dividend growth EFT's or Funds, you will find some holdings that have either small or no dividend. Getting in on the ground level of a stock that is going to increase their dividend for 25+ years can be very rewarding. Many of the fund managers look to stocks they think will begin a policy of dividend growth.

JaxRed
04-22-2014, 01:15 AM
Thought I'd bump this thread. We discussed OHI in this thread several times. They raised their dividend again today for the 7th straight quarter. As Chico Escualla would say "OHI has been berry berry good to me". It closed at 34.76 today.

Here would be my Dividend Growth Pick for today. BCE - Formerly Bell Canada. 5% Dividend and you get to say you are part owner of the Raptors, Maple Leafs and Canadiens. Must be held in an IRA to avoid Canadian Withholding.

JaxRed
11-15-2014, 01:00 AM
For people thinking about stocks for the first time I ran across an interesting new brokerage service. Loyal3 https://www.loyal3.com/

To say they are different is an understatement. First there are no commissions. Second, you can only buy about 63 stocks. There are some very well known names in the 63. Third, when you buy you buy the entire amount. So if you invest $10 in a $4 stock you get 2.5 shares.

They don't execute transactions like other sites also. They bundle transactions... So if you buy $25 worth Coca-Cola, they wait till a lot of people want Coke and buy it all at once. They don't do DRIP (Dividend Reinvestment) but in a way they don't need to, as soon as you have $10 in cash you can buy fractional shares of any company.

I have not tried this..... But seems like a good way to test the waters.