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.
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