Investing 102

[WSSix]

Sounds reasonable to me, Michael. If you're ok with it and are producing the results you like, then keep at it. Only thing I would recommend is consider total returns and not just dividend payout as part of your research. Costco has been working well for me and Halliburton has too. They both are well below 3% dividend.

Good luck!

[GregWeld]

Originally Posted by WSSix

Sounds reasonable to me, Michael. If you're ok with it and are producing the results you like, then keep at it. Only thing I would recommend is consider total returns and not just dividend payout as part of your research. Costco has been working well for me and Halliburton has too. They both are well below 3% dividend.

Good luck!

VERY CRITICAL --- TOTAL RETURN.... it IS the measure of money making.

[avewhtboy]

No rate hike just announced this is great for the div stocks.

Utlilities and Telecom been in favor ever since Brexit trend could continue into next year given the political climate world wide.

Until they start raising interest rate.

[captainofiron]

Havent posted in a while, but I wanted to thank all the posters on here.

My Rollover IRA has been kicking butt in the past year. Im up 22% since rolling over (taking into account the dividends and reinvesting into my positions).

Right now I am accumulating dividends to make more significant buys and take less of a "hit" on the commission.

BUT how much cash on hand is too much?

Would it be smart to put that free cash into a low fee mutual fund so its not just sitting there earning 0.00000001% (exaggerating) interest?

[dhutton]

Originally Posted by captainofiron

Havent posted in a while, but I wanted to thank all the posters on here.

My Rollover IRA has been kicking butt in the past year. Im up 22% since rolling over (taking into account the dividends and reinvesting into my positions).

Right now I am accumulating dividends to make more significant buys and take less of a "hit" on the commission.

BUT how much cash on hand is too much?

Would it be smart to put that free cash into a low fee mutual fund so its not just sitting there earning 0.00000001% (exaggerating) interest?

Are you paying a percent commission on trades in your IRA? Or is it a flat fee? No way I would pay a percent commission. I'd move my IRA.

Don

[captainofiron]

Originally Posted by dhutton

Are you paying a percent commission on trades in your IRA? Or is it a flat fee? No way I would pay a percent commission. I'd move my IRA.

Don

no its a flat rate (Fidelity).

what I was saying is I like to make as large of a purchase/sale for each transaction so I only pay the $8 fee as little as possible.

[dhutton]

Originally Posted by captainofiron

no its a flat rate (Fidelity).

what I was saying is I like to make as large of a purchase/sale for each transaction so I only pay the $8 fee as little as possible.

Can't you select to have the dividends reinvested automatically and avoid fees altogether? I can in my Fidelity 401k.

Don

[MtotheIKEo]

Originally Posted by captainofiron

no its a flat rate (Fidelity).

what I was saying is I like to make as large of a purchase/sale for each transaction so I only pay the $8 fee as little as possible.

Exactly what DHutton said, you should be able to reinvest dividends for no fee. It is typically referred to as DRIP (dividend re-investment plan) and it will purchase as many shares as possible at market value when dividends are received, even fractions of a share.

Read the link below...
https://401k.fidelity.com/static/dcl...t_Domestic.pdf