Thread: Investing 102
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Old 10-31-2014, 08:10 AM
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GregWeld GregWeld is offline
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Trey....


Good thought process. The only "correction" I would do for you (and others) is that dividends are paid in dollar amounts.... but the MATH is PERCENTAGES. 3% dividend is 3% dividend regardless of the number of shares owned. So - If you were comparing two stocks and they both paid the same PERCENTAGE dividend but ones share price is TWICE AS HIGH.... it's still earning the same percentage dividend on your dollars invested (given that you'd have the same exact dollars to invest).


10K invested in one company buys you 100 shares ---- and in the other company only 50 shares --- but the PERCENTAGE of return (dividend) would still be the exact same.

I got what you were saying.... but mathematically it doesn't work out the way you were saying.


HERE is what I would rather see people thinking about..... THE FUTURE as in 10 or 20 years from now. What is the BRAND they like and buy. Don't get trapped in the past. Do you no longer buy the product even though if you did - you'd buy "X"? OR ---- is there another company that might be in the SAME CONSUMER STAPLES SPACE that has better growth and a higher dividend.... So don't get locked into just comparing Coke vs Pepsi.... expand that to look at other "food/grocery/retail/consumer" products for comparison. Are their names that you love even better? That have better growth? That are just as stable?

Not saying there is ---- I'm saying open yourselves up to expanding your research. It will make you a better investor - it will give you ideas for future money - it will make you more rounded in your knowledge so that when you do make a choice -- you KNOW that's the right one for you!
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