|
Lance,
Here is an article for you to read, he also has other good articles. It started with $10k in 2006 and just kept the reinvesting the dividends. http://seekingalpha.com/article/4440...ortfolio&ifp=0 What you need to focus on is Best of Breed stock Dividend payouts Growth or steady charts 5-10 year Diversify that's basically all you need to start, do your homework and buy. Everything else, your thinking to much sitting on the side lines while everyone else is making :G-Dub: |
Investments always come down to one thing, timing. You must put yourself in a position to take advantage when the opportunity presents itself. That means you are prepared to ride out the storms when the economy slows, stock market tanks, or the real estate bubble pops. An investment means that you are secure in your position and can wait for greener pastures to liquidate. If you can't, you have made a serious investing mistake due to your expectations. If there is one thing I've learned, almost everything is cyclical including investing. Can you capitalize when the timing is ripe? That's the million dollar question.
Greg always talks about it not being rocket science. It's the basic fundamentals that get you there. A goal and a plan to back it up. A well thought plan.... |
Lance --
November is NOT a great month for dividends -- the normal calendar quarterly months are better -- but I just want to show you some DIVIDENDS… This is from the account I use here for posting. I want to ask you if I care during the day what the share price is… These are all solid companies - and the dividend is as reliable as clockwork (maybe an atomic clock). If I was re-investing these dividends - think about the amount of shares I'd be purchasing EVERY quarter - and by the end of the year think about not only would my dividends be increasing because I have MORE shares -- many of these companies have increased their payout as well - helping to compound even further. So while you're busy figuring the percentage return on the current dividend -- what YOU ARE MISSING is that I might have bought these companies 5 or 6 years ago for half what they are trading at today -- and my ACTUAL dividend rate is double or triple the current published percentage. So maybe I paid $25 per share for AT&T back in 2009 when it was paying .41 a share per quarter and now I'm getting .48 per share per quarter. Suddenly the current 5.44% rate as quoted today is actually ME earning 7.68% today. Not bad and if you add in the capital growth.. well then I'm looking pretty good for the boring telco stock investment. 11/29/2013 Qualified Dividend SBUX STARBUCKS CORP $260.00 11/27/2013 Cash Dividend NTI NORTHERN TIER ENERGY LP $7,440.00 11/15/2013 Cash Dividend NNN NATIONAL RETAIL PPTYS RE... $8,100.00 11/14/2013 Cash Dividend KMP KINDER MORGAN ENERGY LP ... $13,500.00 11/07/2013 Cash Dividend HYG ISHARES TRUST IBOXX $ HI… $4,601.62 11/01/2013 Qualified Dividend T A T & T INC NEW $9,000.00 11/12/2013 Cash Dividend JNK SPDR BARCLAYS ETF HIGH Y... $2,961.68 I should add that JNK and HYG dividends are paid MONTHLY not quarterly. But my point is that when you're looking for investments… dividends are not a bad way to go = and over time - they get better and better. Obviously I have some serious share counts in some of these in order to get these types of dividends - but even if a guy retired with 1/10th of what I'm showing here --- and he gets SS on top of this… he can live decently in retirement. Especially if the monthly bills are under control. |
My only reason for posting the analysis of MO Friday was to see what my return might have been back when I was in the market if I had owned MO.
Several have accused me of thinking too much by doing this exercise, but at the same time all suggest that each of us do our own homework and research then decide what to invest on based on said research. For the record, my FA had me in the "dividend income" plan in the 2006-2008 period, and I understand it very well. What I experienced was in lock step with what MO went through. A stock in their "dividend income" plan would cut it's dividend (for whatever reason) like MO did in 2008 and not only would the share price plummet, but at the same time they'd decide the stock didn't fit the parameters of the plan, so they'd sell it and go into another stock. The net result typically was a capital loss on the sell wiping out the return made up until that point. I haven't gone back and looked at it since, and I haven't seen where anyone else has corrected my numbers from Friday...but if they are true, how can one NOT include the 3% a year ROI on the stock for the 15 year period in their analysis? Sure, I agree, the 5 year history numbers look fantastic, but doesn't just about every stock's 5 year chart look great. It's because they start at the bottom. The 10, or 15 year charts look much different... In my opinion one can not claim to disregard "timing the market" yet cherry pick the time periods to show return history of a certain stock or strategy. Also for the record, I am not using this example as a reason to stay out of the market, I'm using this research as a way to find my own path for investing for the future... I agree with much of what has been said in this thread, one has to be confident and comfortable with the investment choices that are made. Having been there, done that for a significant period of time...I'm now trying to find a new way to be confident and comfortable... |
Quote:
Quote:
I think what you're being "accused of" -- which really isn't what anyone is trying to do -- is trying to show you that you're making "investing" too complicated. It's NOT complicated. A person can make it that way if they choose to… but I'll repeat for all those that read these posts… INVESTING is about buying good stuff - believing thru thick and thin that they own good stuff. And letting TIME compound their money. WE ARE NEVER TALKING ABOUT THE GYRATIONS ALL MARKETS GO THROUGH DURING A TIME PERIOD. We are trying to learn that when looking at a longer term picture - that while HELL YES things go down… And we need to learn to live with that because we as ordinary humans will never foresee that "dip" --- and we'll never be back in the market when it rises. History will teach you that had you done nothing - except to let it ride - that you'll be made whole again and then some. And if you're reinvesting the dividend - you'll come out even better. Quote:
MO spilt off ANOTHER dividend paying stock -- THEY DID NOT CUT THEIR DIVIDEND -- THEY GAVE YOU ANOTHER DIVIDEND PAYER. Let's be factual. YOU might have had other dividend paying stocks that cut or quit paying their dividend. I did too. But that is why we don't have all our eggs in one basket. If you had kept every investment you owned to the 5% rule - then that "loss" of dividend would have been very very small to your overall portfolio. And my guess is - that if you were actually in the Best of Breed companies that we're taking about investing in… you'd be very very happy with your overall investments right now. But we can't discuss your individual investments since we don't know what they were. Quote:
Because nobody is going to waste their time trying to disprove something that nobody cares about. You're MO example was completely flawed by not factoring in the Philip Morris (PM) spilt. Quote:
Again - you're choosing to argue "semantics" rather than a larger picture view. The point of going back to look at charts is to help choose those companies that have a track record of RISING OVER TIME -- and RECOVERING OVER TIME their share prices. It's "reassurance" rather than hard and pat fact. You're trying to disprove each investment. I choose and have tried to guide the newb investors here - that what we're looking to do is to see that by and large - stocks - over time - go up. They are stair steps to be sure - and we need to realize and acknowledge that - but if overall - you begin to SEE - that over time - prices have advanced - despite the occasional wind sucking periods. Some websites only go back 5 years -- not everyone has the ability to go out and find "since the beginning of time" charts. This is INVESTING 102… it is NOT a primer on how to do every last thing regarding every stock ever in the history of time. Nor is it a primer on how to calculate the very last percentage point during the last 15 years. It IS a primer on big picture thinking - and trying help people past their fears of something they might not fully understand - or have NEVER understood, i.e., "the stock market" and kinda sorta how investing in it works. Quote:
Sorry --- I can only read into your posts what I see. And to me - and perhaps others (from reading their posts to you) that staying OUT of the market is exactly the confirmation you're searching for. What we're all trying to tell you -- is that while you're busy figuring - the rest of us are busy making money. Frankly - nobody gives two hoots if you're in or out… and I personally have given up trying to lead you by the nose. I really want to -- but I'm only going to spend so much time (already past that point) of trying to prove to you that you're "method" is a losing battle and that had you just done what I've tried to show people here… you'd have a different outlook/outcome. There is absolutely NO QUESTION in my mind - that I will suffer "market losses" -- on paper -- My net investment will most likely not be worth what I paid. BUT I also absolutely know that I own some of the greatest companies in the world (you or anyone else here has only been shown a very small fraction of my personal investments)… and that at 60 years old - I plan to live long enough that those investments will continue to grow and provide for me. I won't have REAL LOSSES because I won't sell them and therefore actually suffer the losses. That's for losers. My plan is to be a winner. To do that - I have to stay with my investments and continue to collect the dividends (called getting paid to wait - what are we waiting for? For the market dip to come back and start going up AGAIN as it has always done). HERE'S YOUR ANALYSIS HOMEWORK. Show me that owning a home is "profitable". In other words -- take a house that you paid $X for in 19XX year -- and had a 30 year 5% mortgage - and factor in hard costs of upkeep - and a minor $50K remodel - and property taxes (that's an actual hard cost of carrying that "investment")… What this will look like is that some times your "investment" was okay - and sometimes it wasn't keeping up with inflation -- and what I will tell you - is that all the time you owned it - and you finally sold it for more than you paid for it (that's way different than actually making a profit on it)… that whatever you sold it for - the new house was also equally inflated. So you traded dollars - you didn't actually come out ahead unless you sold in San Francisco and moved to Minot ND. I own a couple apartment complexes -- let me assure you there were times when they SUCKED… Rents were down (especially when the banks would give loans to buy a house for free) - and we had to improve them just to keep tenants. BUT these pay for themselves and spin off cash flow (like dividends) and if and ever I get ready to sell -- they'll be worth more than I paid for them. Maybe. And if they just hold steady - then they still pay me every quarter. And the idiots that rent make my mortgage payment -- so what's not to like? Point is -- real estate was a HORRIBLE investment during the great recession. Hey! Maybe that's why I held on to 'em. |
My post was too long…. so here's the last paragraph.
Think about the market as the NFL -- over time - there are teams that consistently suck -- you might live in that town and be a fan - but dude - your team sucks… always… but you still like football in general. The thing to do in the market is to pick "teams" (stocks) that are consistently DECENT -- not stars today and bottom of the pile next year…. we want to pick stuff that stays in the hunt or are always contenders. Since nobody can predict which team is going to the Superbowl… Lets pick 10 teams that have shown they are always in the hunt. Maybe none of them get to the Super Bowl this year… but maybe we get 3 teams in the playoffs… Hey! I'm okay with that. I need to go back over time to look at their history of W's vs L's… and use that to try to confirm or deny why I might pick them. Is it always 100% correct - hell no. Once in a while some team comes from the depths of despair and kicks everyones butt.. OH WELL…. I'm to looking for 100% perfection on every team - I just want guys that I can stick with even when they suck… 'cause I know in my heart that they'll turn it around (that the ownership - rather than the coach this season - the OWNER has to fire people and get the right mix - so really I'm betting on the ownership). So I'm betting on the MARKET to get it right -- and that will float all my boats… and my job is just to pick a mix of pretty decent stocks I can live with. All the analysis in the world will NEVER get me 100%. Sometimes I might have to dump a team that just can't get it together I'm okay with that. But I need to look longer than just this weeks game. |
I have to add this thought while my little finnies are typing.
What people have to get their head around is that the market is ALWAYS going to go up and down. But if you have a market like this year - it's up 13% or whatever (I don't honestly know 'cause I don't really give a ****)… and next year it only goes up 5%…. and then it's down 4% and then it's up 9% (the market average over time)… YOU'RE GOING TO BE AHEAD… and if you think about that's just capital gain…. you're up way more than that if you factor in a 5% dividend. That's why I like to simply look at TOTAL RETURN over time…. It's not any more complicated than that. I want to double my money about every 5 to 7 years… even if I have to suffer a downturn in between. I can only use history as a GUIDE - it's not a guarantee of the future. I just have to have some trust that the future will be SIMILAR to the past. |
Altria (MO), maker of cigarettes and other tobacco products, shifted all its ownership of Philip Morris International to shareholders. If you owned Altria on March 19, 2008 you were given shares of Philip Morris International on March 28, 2008.Shareholders received one share of Philip Morris International for every share of Altria they owned.
Lance --- Go back and refigure your MO scenario If you'd just bought them the first day they traded as separate companies (because we know those costs and dates). We know Altria closed at $22.20 on March 31,2008 the first trading day after PM was split off. That day, Philip Morris International closed at $50.58. The value of the two stocks together on that date was $72.78 Today -- the two stocks combined trade for $122.34 In March of 2008 PM paid .46 a quarter -- today it pays .94 In March of 2008 MO paid .32 a quarter -- today it pays .48 So, just quickly -- since 2008 you had a cost basis of $72.78 and you're now picking up a 1.42 per quarter or $5.68 per year. The dividend is now paying you 7.80% based on your cost. AND you have a $49.56 unrealized long term capital gain. That's a 68% capital gain so far. What part of that is hard to grasp? :lol: :idea: 5 year TOTAL RETURN on PM --- 152% 5 year TOTAL RETURN on MO --- 229% I don't know - maybe it's just me…. The way I FIGURE IT… it might be part of why I'm sitting pretty and retired and running my race cars and hot rods… (forget that we were LUCKY AS HELL to begin with - I still have to manage that). |
I transferred a portion of my holdings in my 401k account to more of a self managed account. I purchased 7 stocks. VZ,KMP,PFE,NU,MO,KO,PG.
I went from 0 dividends to $2,000 annually I love seeing the shares climb on there own. Hey you got to start somewhere.All dividends reinvested. I also opened up a Roth for Me and my wife with Scottrade. I bought a few shares of JNJ in hers and a few CVX in mine. Whats cool with the Scottrade account is that you can buy a totally different stock with the dividends.It doest have to go back into the same stock.Will continue to diversify those. Also got my brother to switch his account also.His first 3 stocks were KO,KMP,KMB. So this thread has helped my whole family. Thank's for taking the time to get us going. John |
Quote:
Great to hear John!!! Think about that now for a minute! You're now saving $2,000 a year for doing absolutely nothing and if you're saving on top of that === that's going to compound big time! Send me a postcard from Hawaii when you're there playing golf the week you retire. HAHAHAHAHAHAHAHAHA I wonder to myself every day if anyone is actually reading, or if they are, are they seeing some success with any of it. So it's heartening to hear that someone is! |
Quote:
:) <the silent one> lol |
^^^^^^^^:thumbsup:
|
Quote:
I built a spreadsheet to track my dividend earnings. I also compare it to my monthly expenses... The dividend payouts are only ~5% of my expenses now, but my goal is to always increase that % from here on out. |
Quote:
Quote:
Thanks guys. I have to tell ya --- that what I've been trying to do -- is to "dumb down" the entire process of thinking about "investments". I run around with some pretty smart people - professionally… Doctors/lawyers/CEO's etc… and they're the WORST investors ever (in the universe) and the reason for that - I've discovered - is that they all try to make too much of it. The Doctor goes to his accountant to try to figure out all manor of "tax" avoidance investments. The lawyer tries to take the opposite side of every issue -- that's his training -- I get it. The CEO's are too busy trying to build their futures with all manor of deferred compensation - and Options and such.. that mostly all depend on the current company doing exceptionally well (i.e., going public). They all sit at my dinner table and ask me about my investments. And what I keep trying to tell them is that what I concentrate on is MAKING MONEY in a very simple fashion. I don't try to invest to avoid taxes… in fact… I pay a fortune in taxes! Why - because I'm making an even larger fortune on my investments. Taxes are only a small percentage of what I make. To me - the more taxes I pay - the more I've made! And while I understand Options and deferred income -- that's putting all your eggs in one basket - a big no no! Lawyers are just lucky that they make partner level and never retire so are always on the payroll. They stop "practicing" but are still on the board of their firm etc… The theme is -- too much thinking and not enough doing… and keeping it simple and making some money. You want to make money in real estate - you can't do that living in the place -- you have to buy INCOME property. You let the tenant pay the mortgage - and give you a bit of cash flow… and down the road it's either all paid for and you pocket the "rent" (which after 20 years is like dividend increases - it should be far higher than when you started!)… I don't care if that's houses - apartments - or commercial property. The premise is the same. Someone else paying your debt - and paying you. OVER TIME this works out real well. Stocks are the same -- You put your money into great stuff -- get paid while your price grows.. eventually it's paying you nicely -- and or you can sell some when you need to not because you have to. It takes TIME to get to that point - and it takes you putting your money in on a consistent basis… Some guys invest TOO MUCH --- and then they're forced sellers at the wrong time. When do people get laid off? When business is crappy! When is the market crappy? When business is bad! If you've put every dime into the market -- and you have too much debt service -- and you have no cash… you become a forced seller and lose your butt! So putting too much into the market -- while at the same time having too high of a lifestyle -- can defeat everything you've worked for. Some guys - my friends - try so hard to talk themselves into so much BS style investments because "they don't pay any taxes" -- or they invest in "annuities" (that is NOT an investment and you'll never convince me otherwise!). What I say to them is -- they want to abdicate their future to someone else rather than taking control -- keeping it real simple -- and just banking the proceeds. When I show them I make 3 or 4 times what they make - and I don't do anything to earn it…. they're always shocked. Then they always say to me -- ah ha! Now I understand why you're always going to some race somewhere -or some car show - or some trip… YEAH! Because I keep it simple… I have all my money in great stuff that pays me to do nothing. How hard is that? :lol: :lol: :lol: |
Quote:
AWESOME! How much time do you have before retirement?? |
Quote:
|
Quote:
|
Quote:
|
Quote:
Awesome.. I've got spreadsheets tracking my income, expenses and then my retirement account (i dont have any non-retirement investment accounts). I need to add that to my list, to see how much my investments spin off to make up my expenses. I'm a far cry from 5%, Im sure of that. 3/4 of my retirement is still in a 401k that doesnt only sorta pays dividends, but, i cant "see them". Unlike a normal stock, the funds I'm in I dont get really daily updates on their performance. I mean, i can see when the open/close, and my total amount invested in it. But not the # of shares, not when it pays me a dividend (some i have DO pay them), etc. I should be done with my Emergency fund soon, and can start getting back into investing into my future. My goal is 10% of my income into a non-retirement account and 10% into a retirement account (Roth). |
Quote:
Investing is part of my daily routine - even though I don't often move money around - meaning - I'm not selling and buying and trying to figure out the next greatest investment - I still LOVE to know what's going on. I think it's like car stuff -- if you're not reading and going to shows etc - you completely miss the TRENDS. I think the reason that it's FUN is that I'm not stressed out about this stock or todays "action". It's more just liking the action but at an arms length. Quote:
Okay -- so you've got 60 years of growth and dividend collecting. Somewhere in this monstrosity of a thread… there's real math showing that if you put away 2,000 a year from 21 to 31… and at 31 you stopped adding to your pile -- you'd have a million bucks at retirement. At 31 you need to add MORE than that and you'll have to do that until you retire. Not a big deal - because you're at least reading and learning and planning. Maybe you'll get to retire EARLY. Gotta like that plan! Quote:
Yeah --- as above. TIME is the big deal. I've shown it before but here's a quicky… 2,000 in 7 years is 4,000 in another 7 years is 8,000 in another 7 years is 16,000 in another 7 years is 32,000 in another 7 years is 64,000 ----- but here's the kicker in just another 7 years --- it's 128,000 It's that LAST 7 year period that really made all the difference in the world. SO if you're starting late (it's never too late!) Then you have to take the years off the beginning. In other words - to get to the 128,000 if you only have 21 years to retirement - you have to put away 32,000 and so on. Your money quits compounding at retirement - because that's when you switch from money growth - to INCOME to live on. Like me - I save absolutely not one penny -- and some years I might spend more than I make net. But I'm a little different story and have been luckier than most. |
Quote:
Albert -- that might seem really painful to many folks -- but think about how painful it's going to be if you DON'T do that! So many play now - thinking they'll somehow take care of everything later. Like I said to a buddy the other night --- Dude! If it costs you 150K a year to live right now - and you want to live the same in retirement…. that's the income off 3 MILLION DOLLARS! He stared at me like a deer in the headlights. Given that he's 62… I'm thinking he might be in a dark tunnel and there's a train on the other side. |
Quote:
Boom!! Now that wasn't so hard, was it? :waveflag: :D I figured that MO holders got something out of the spin off, but hadn't looked into exactly what. Looks like those that held onto PM afterwards did pretty well also. Today should be one of my business's busiest days of the year (hopefully) and this week one of the busiest weeks as well...so I won't have time to look around much this week. I have caught up on reading the thread though and am soaking it all in. This week will be more about making money the other way though...for me anyway. Keep up the good work everyone, love reading the success stories. I'm off to pack and ship some Christmas gifts... :cheers: |
Have a Merry Christmas!
We'll all still be here when you're done shipping stuff!! Quote:
|
Quote:
|
Quote:
Just know that I'm bowing to you!!! 'Cause that right there is awesomeness! The reason for setting the bar LOW (the 5% I always use) is so that there is an upside surprise rather than a fudge it factor that is just plain BS. The AVERAGE market is around 9 to 11% -- which at that rate - doubles money every 5 years rather than 7…. but if you count on that and save that way - you'll end up short. Better to end up way better than way short!! |
Quote:
Thanks Greg! I'm learning that I really dig this kinda stuff. lol |
On a side note. Today was dividend payday for me and my fellow MCD, KO and ED owners. Woot!
|
woot! I got paid today too. :G-Dub:
|
Quote:
All ready this month I got paid from F CHD PSX COP OLN ED MCD KO then on the 19th I'm getting an AIG dividend. Keep them coming. |
You guys crack me up!!
Don't ya just love getting money for nuthin'???? Glad this is working out okay for all of you!! Merry Xmas! |
Everyone read part 1 and part 2
By far the best thing I have seen so far about the type of investing Greg has been beating in to our skulls. http://seekingalpha.com/article/2902...need-it-part-1 |
Quote:
GREAT ARTICLE RICHARD!! And yes -- I probably could have written that myself - EXCEPT for the BONDS portion. I don't think anyone should ever be in bonds. They suck just as bad as mutual funds. They're a fixed rate depreciating investment in my opinion. I let my guy talk me into buying a laddered portfolio of bonds (4MM worth) and I couldn't sleep at night owning them (seriously) - I finally said FT and sold 'em all (for a gain)… I can't tell you how happy I was that day. But I digress. The key is - and has always been -- INCOME -- and TOTAL RETURN. That's how you get success. While we'd love to be the guy that owned Microsoft from the beginning (us)… That's the lottery way to success… not THE way most (all?) folks are going to be able to retire. Here's the thing I've kind of avoided discussing -- but it is the elephant in the room… so here goes. If you're in a situation RIGHT NOW - where you're struggling (REGARDLESS OF INCOME LEVEL) to do everything you want to do and pay all your bills etc… WHAT DO YOU THINK THAT'S GOING TO LOOK LIKE WHEN YOU'RE 65 AND OUT OF WORK? So if you're in that position now… then something needs to be done to get yourself financially healthy NOW… so you can start to prepare for later.. 'cause later is coming up pretty dang fast. In years past - people didn't live as long as they do now. 30 years ago if you had a heart attack - dude! You died! Now? It's no biggie… So living to the late 80's or 90's is really a pretty reasonable expectation. None of us wants to live under a bridge. I've been retired for over 20 years now… and that article talking about inflation etc -- that's REAL LIFE and there's nothing you can do about it! My first BMW cost $7600 -- that same car now is $60,000. Yeah I can buy something else -- but is that how you want to live or see yourself living? Ya drove a BMW all your life and now you HAVE to buy a YUGO… Not me! I'd rather drive a Chevy ALL OF MY LIFE…. if that's what it takes then that's what it takes. That to me is a better overall life. Just talkin' here…. the "you" is anyone reading… and if it's "you" - "you" should be scared and taking some actions to better your situation. It doesn't get easier - it gets harder… So just get 'er done! |
Halfway thru the month…. I maybe can pay my gas bill! Ya think? LOL
12/16/2013 as of 12/15/2013 Qualified Dividend ED CONSOLIDATED EDISON INC $3,075.00 12/16/2013 Qualified Dividend KO COCA COLA COMPANY $2,800.00 12/10/2013 Qualified Dividend CVX CHEVRON CORPORATION $3,500.00 12/10/2013 Cash Dividend JNK SPDR BARCLAYS ETF HIGH Y... $3,020.24 12/06/2013 Cash Dividend HYG ISHARES TRUST IBOXX $ HI… $4,500.14 12/02/2013 as of 12/01/2013 Qualified Dividend WFC WELLS FARGO & CO NEW $6,000.00 12/02/2013 Qualified Dividend F FORD MOTOR COMPANY NEW $1,500.00 |
As long as I'm posting… again… I know! I know! But I keep having thoughts about stuff and I want to share with you all!
Once again - the caveat! This is NOT a stock recommendation thread nor am I recommending this stock. It's just an EXAMPLE of my way of thinking. As above (post showing dividends) - it's obvious I own shares of Wells Fargo Bank (WFC) -- which is funny because I don't bank there… I bank with Bank of America (BAC) and usually I try to own stuff that I actually use/shop/buy/know etc. But in this case BAC had (IMHO) too many issues with their lending practices… Here's the deal -- I was "early" back into a "banking" (financials) investment… because it was obvious to me that the housing issues were being cleared up… and business and housing were picking up… AND part of that point is that I'm paying attention to what I "feel" and read about… and that's all part of investing. You guys are trying to TIME the market by scamming a stock down .50 a share on a sell off day…. I'm trying to be 6 months "early" into an investment IF - big IF - I'm clever enough to see it coming.. Okay - back to my bigger point. I hate low dividend payers --- under 3% just ain't going to get 'er done… and when I bought (scaled into!) WFC -- it paid even less than that! But I didn't buy into it UNTIL IT DID RETURN TO PAYING A DIVIDEND --- and it has a HISTORY of paying a decent dividend - so I'll look back into the Board of Directors and figure that is going to be the history going forward as soon as the Gov let's em -- and they think they can afford it….. BUT what I was really looking for is to be in it LOW --- and have them INCREASE the dividend payout over time -- even though to the NEW BUYER (Current price) that div % might still calc out "low" --- it's rising for me on my cost basis…. AND as they raise the div -- the stock will also rise --- for what?? FOR TOTAL RETURN. ONE YEAR TOTAL RETURN?? 35% So can we take "only" earning under 3%……. Well yeah ---- if it works out that the share price is going to make up the difference --- AND you think they'll increase the div over a relatively short amount of time (couple years?). Again -- just sharing the way I think - and the way I try to keep my hat on when I'm looking around for investments. I'm "fluid" -- that's not TRADING -- but it is trying to stay on top of the market. Because like Crammer says -- there's always a bull market somewhere. Now - let's be real -- I can write about this NOW because it worked out. But that's what I always tell you guys -- ya don't bet the farm -- you just scale in -- up or down sometimes - and sometimes they work out. Not always - and that's when you need to revisit your "thesis" and be fluid. It's okay to be wrong sometimes. |
My finance guy, Laura's boss, just told me we are up over 17% for this year. Couldn't have done it with you Greg, thanks.
Now we are concentrating on paying off bills, so we can save more. |
Thanks Greg for all the help here. Although I don't post much, I keep up with this every couple of days.
BTW - just saw I received a 35% raise from 3M today! Even better, my cost basis is $75.55 (I've owned it since 2007 I think). At the new $0.85/qtr, my return is 4.5% just from the dividend! I'm using my dividends from this and other positions to create new positions within my portfolio. Currently purchasing Duke Energy (my local utility, so I can keep up with the goings on) and PEP (I like that they have both snacks and beverages). When I establish ~$5,000 per each of these, I'll move on to establishing positions in other companies. I use Scottrade and they are allowing dividends to be used to purchase any stock commission free within their new Flexible Re-Investment (FRIP) program. |
Quote:
Ummmmmm….. I fixed it for you…. I think I hope that's what you meant to say. HAHAHAHAHAHAHAHAHAHA So good to hear BTW!! Quote:
Thanks for posting up -- because every day I wonder why I'm doing this? Not on a philosophical basis --- but because I wonder… is "anybody listening/reading"? Then a new guy pops in -- like Lance -- and I go on a mission to help him understand…. or some guys like yourself tell me they're doing okay -- and I think FANTASTIC!! That's why I bare my soul in here!! |
Quote:
I'll be paying close attention. We've just had a major change in lifestyle this last year and I've got to pay closer attention to our finances/cash flow now. House is paid off. Cars are paid off. 0 debt!! :hapdance: ~$150,000/yr income & $480K in 401K. From that $150K annual we've got to finance my small business I just started and put 2 kids through college beginning in 2 1/2 years. ~13 working years left for my wife Jean and I've got to get the business off the ground. I wish you'd start a Small Business 101 thread. :) |
I am so happy for the information in this thread. With a solid 30 working years to go(and for my money to compound), I feel like I have a good chance of success! Reading Investing 102 daily gives me further reason to put my 67 firebird as a "second priority" to saving for the future. A big thanks again!
|
Quote:
Oh man! You're looking fantastic financially dude! In 13 years -- you have the chance to have that 401K flip over twice -- so hitting the 1.5MM mark for you! This should maybe be a separate post but here's what I don't want to see you do… Do not look at that 401K as your "saving grace" - for college or for your new business. Ditto the house equity. YOU don't have all that much more time to work -- and you need this last little bit of time left to have that 401 to be able to provide for you for the next 30 odd years. If your new business doesn't do what your plans say it should --- don't let it drag you down. All to often people take everything they've worked for and plowed it all back into a small business. EGO makes them do this because they can't separate themselves from "what they've started". A business needs to be self sustaining -- it is not - and never should be - a financial drain. It isn't and never should be "buying yourself a job". Successful business people know (or have learned) when to cut and run. Brings to mind an old adage -- "your first loss is your best lost" --- and what that means is it's far better to just pack up shop and take that first big loss (whatever that is) than it is to add more to it making it an even bigger loss down the road. And NO I will not start a Business 102 thread -- hahhahahahahaha. There's just way too many variables in that kind of a discussion. I'll tell you this though -- and it's like this thread. Remember nothing more than the basics. To wit: SALES come first -- without them you have nothing. All of your effort should be on sales. Everything starts there. The warehouse you don't need if you're not selling something for it to exist. My old partner always said - three things in business are important. Sell it - ship it - get paid for it. Pretty much sums it up. Everything else you do is nothing more than SUPPORT for the sales that had to come first. Quote:
Thank you -- and by the way -- TOYS should be the LAST item on a list. You can have all the toys you ever wanted once you can afford them. Affording them does not mean at the expense of something more important or more basic. LIVING in retirement is a pretty basic need. It's not a want - it's a need. Do it right and you can have a couple cars to play with and go on trips with when you not only have the time - but the dough. You can not "save to spend" -- that is not savings -- that is just a pile to spend. That's okay to do AFTER you've funded the retirement account. Then you can SET ASIDE some money for the hobbies and go spend them. Just know that the sooner you fund the retirement -- and it starts on the road to self funding (the dividends start to become more per year than you could have ever saved) -- then you can start to feel free to "indulge". Do the math…. if you have 25K right now to go buy a car for a "project"… if you put that away instead - in as little as 7 years - it's going to be 50K - and in as little as 14 years it's going to be 100K… and the next flip it's 200K… You said you have 30 years…. okay --- we have 200K and that took 21 years to get to - the next flip -- inside your 30 year time frame -- takes that to 400K. Think about that TIME on your side -- 25K became 400K and you didn't do a thing except invest it instead of spend it. Think about now if you had been adding each year just a couple grand to your nest egg - and now you retire with a cool million dollars in CASH (equities actually). Or you're an even better saver and you retire at 55 instead of 65… Now we're talking! IF I'VE LEARNED ANYTHING about living in retirement -- it's that the only thing I have of any real value - is my TIME. No amount of money can get it back… and each day another day slips away never to be had again. If I sold all the stuff I have I can't buy it back. |
| All times are GMT -7. The time now is 08:28 PM. |
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2025, vBulletin Solutions Inc.
Copyright Lateral-g.net