Investing 102

[Bucketlist2012]

One third of it's investment back, every year....

In Nine years , it will be getting it's original investment back EVERY year.

I almost picked up some BRK A at 86,000 back in 2009... I thought better to diversify more...

But I always wonder about that 86,000 buy...

[CRCRFT78]

Wow to get back 1/3 of his investment in dividends and then to eventually get back his initial investment in dividends every year is great. Coke has managed to consistently raise their dividend output by an average of 12% a year. That is definitely a stock to look at and study. It also gets you thinking that even though some stocks seem to be good solid picks, you've got to be able to think outside the box. Just understanding the affects of cyclical vs non-cyclical can have a major affect on your portfolio growth.

[70 chevelle]

Greg some pages back you mentioned looking up upcoming ex dates on seeking alpha. I have scoured that site trying to find that info. Would you mind posting a link to that ?

[toy71camaro]

Great article, totally re-iterates what's been said here...

long term, growth staple companies who pay decent dividends.

i think i heard that before some where?

[toy71camaro]

Ok, here is one i'd like to open for discussion....

Pepsi Vs Coke. (the grand ole debate) but not about flavor! hah

Looking at their current info, they are nearly the same price, dividend is +0.35% in Pepsi's favor.

Total return:
Pep: 3.6%/34.3%/12.6%
KO: 12.4%/87.7%/73.3%

So, going out to the 5yr mark, looks like Coke is the clear total growth winner... but, looking at the 10 yr mark (which, i dont see Schwab has that graph):

Since 1999:
Pep: 87%
KO: 28.7%

The 10 yr charts between the two show that Coke had a very rough patch from 2000 to 2010 when they finally "broke" above their 1999 price.

That seems to me, that PEP, while doesnt have the current growth KO has over the past 5 years, they seem to be much more stable, and more "heading in the right direction".

Whats the census say?

[toy71camaro]

I guess... to somewhat answer my own question...

Perhaps Coke would be "better buy"... for those handful of years, we got our dividends still, and were purchasing shares at a discount. Eventually it "came back up", and now we have more shares when it came around = more money in our account.

then, the next question to answer (myself, not meaning you guys)... is to try and guess which one is going to be the "better guy" the next 10, 20 years.

Both being fairly solid in the past (PEP being a bit more "stable", but, stable can also = less shares = less money), they'll probably end up nearly the same in the end. hah.

[GregWeld]

Originally Posted by toy71camaro

I guess... to somewhat answer my own question...

Perhaps Coke would be "better buy"... for those handful of years, we got our dividends still, and were purchasing shares at a discount. Eventually it "came back up", and now we have more shares when it came around = more money in our account.

then, the next question to answer (myself, not meaning you guys)... is to try and guess which one is going to be the "better guy" the next 10, 20 years.

Both being fairly solid in the past (PEP being a bit more "stable", but, stable can also = less shares = less money), they'll probably end up nearly the same in the end. hah.

These kinds of questions are the constant struggle in "investing".... and they really have no answer because nobody has the crystal ball. We can study numbers 'til our brains run out our ears... but that is all in the past.

SO -- I've said it here before. When it comes down to this... PICK THE ONE YOU LIKE. Do ya drink Coke or Pepsi? Choose one. If you have the dough - put some in BOTH. Cause you're not going to be far off the mark with either one IMHO.

Remember that we can manipulate numbers in any way we want... which period of time... EBITDA... P/E.... and blah blah blah. The important lessons of Investing 102 are -- DO SOMETHING... and if that something includes some basic research -- which you just did (and showed it here)... then the final "right answer" is to pick the stock that YOU want to own and feel good about.

[GregWeld]

Originally Posted by 70 chevelle

Greg some pages back you mentioned looking up upcoming ex dates on seeking alpha. I have scoured that site trying to find that info. Would you mind posting a link to that ?

Here's an easier site to work with for that.


http://www.dividend.com/ex-dividend-dates.php


Seeking Alpha is good "reading" but is kind of a loosely structured bunch of people just writing articles vs a "here's this in this spot always - day in and day out" kind of website. I find good stuff to read and tickle my pea brain on Seeking Alpha... but it's not really a research website.

[70 chevelle]

Originally Posted by GregWeld

Here's an easier site to work with for that.


http://www.dividend.com/ex-dividend-dates.php


Seeking Alpha is good "reading" but is kind of a loosely structured bunch of people just writing articles vs a "here's this in this spot always - day in and day out" kind of website. I find good stuff to read and tickle my pea brain on Seeking Alpha... but it's not really a research website.

Thank you.

[GregWeld]

Originally Posted by solarguy09

One third of it's investment back, every year....
In Nine years , it will be getting it's original investment back EVERY year.

Isn't that amazing!! It blows my mind. That is over a long hold period of course.. but it shows the power of dividend investing. Ya think Warren cares what the daily stock price is?

So if you were 30 years old - and had bought Coke (KO) and you're now 60 and close to retirement - you'd be getting your original investment back every year in dividends.