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Originally Posted by AU Doc
Thanks for taking the time to reply to everyone’s questions. I know the same questions get asked over and over.
That said, I’m through the first hundred or so pages and haven’t run across my particular question. At least not that I recognized, anyway.
Let me try again. It looks like the average dividend yield across the market is between 2% and 3%. Take Home Depot for example. It’s current dividend yield is 2.13%, which isn’t enough to warrant a buy on the dividend alone. It is however benefiting from the current housing growth and the stock price has been on a steady climb.
Another example is Ford. It pays a dividend of almost 5%, but the stock price has been on a decline since 2014. So again, it doesn’t fit the criteria.
Verizon has a nearly 6% dividend, but the stock has been mostly flat for the past five years. So it’s beating inflation, but still well behind the market.
I suppose what I’m saying is so far the intersection of stocks with a 5% dividend and a flat to increasing share price has been a bit like finding a unicorn for me  Based on my difficulties so far, I’m wondering if I’m misunderstanding some of the terminology, or if these stocks are just difficult to find.
Thanks again! Just trying to put all the pieces together here |
Keep reading.....
The entire thread is only about things to think about - ways to look at things - it's not about what to do or what you should or shouldn't invest in. It isn't math class -- it's more about critical thinking. That's the problem with investing / investments.... if you understand the basics - then you can begin to look at them with your own criteria and understanding. That's all this thread is about.
You asked about narrowing down the choices you found using your search criteria -- I responded with some ways to think about how to begin to help narrow the choices down. There's no magic bullet for selection. There ARE guidelines to help - such as don't put too much in one basket - diversify - know and understand the business you're investing in etc. Investing isn't just about numbers - it's much more about understanding WHY you invested in what you did -- perhaps applying what and how you feel about that particular investment going forward... at some point - you can only trust your own judgement because it's YOUR money.
My suggestion was to just simply look around you - where you live - what you do for a living - start to look up companies you personally do business with.... sometimes just thinking and starting with that - will lead you to look at competitors and start doing comparisons - and one thing leads to another.... and triggers your brain to look at some other company that popped into your brain.... start making lists of the things you've looked up - the more you poke around the more you'll learn, the more questions you'll ask yourself....
This is investing 102 - beginners investing... you can pull up all manor of "criteria" -- and tape the list on the wall - close your eyes and throw a dart - and put money in whatever the dart landed on..... OR you can start with businesses you actually know their names - might do business with.... places that you might actually want to be a partner with. Do you want a rental house in a neighborhood you've never driven thru and know nothing about? Or would you sleep better at night with a rental in a place you kind of are familiar with and you've known the neighborhood since you were 10?