Investing 102

[GregWeld]

Originally Posted by billscamaros

So what are your thoughts on General Mills (GIS) and American Electric Power (AEP)?

GIS - div/yield .31/3.00, P/E 17.29

AEP - div/yield .47/4.53, P/E 12.75 , but doesn't have a distinct rising growth over the past 10 years.

Regarding the Greg and Chad conversation involving taxes .... would you approach the dividend differently in an tax deferred IRA vice a straightforward brokerage account?

Nice yields... and the growth on a good old standby - GIS (General Mills) is outstanding...steady eddy.

AEP (American Electric Power) has been not so hot - but has that 4.5% dividend. My advice -- BUY CON EDISON (ED) has near the same dividend (3.87%) but has capital growth of 40% on top of that... compared to a capital loss for the 10 year period for AEP.

That chart will make you even sicker if you go out and compare the time period "ALL" -- ED is up 900% compared to AEP @ "only" 69%

Just saying -- that if you want to own "best of breed" in any given sector - they're best of breed usually for very good reasons -- and here's a perfectly good example of the difference.


Long time periods for sure -- but here's the way I think about this stuff... I'm 58 already (damn) but I plan to live to at least 88 -- THAT IS THIRTY MORE YEARS -- and I want to have growth in capital to sustain my superior spending spree....