Investing 102

[sik68]

Hey Greg I'm today's pest

What do you think about Public Storage (PSA). The 5 and 10 year is very steady eddy-esque, and they have a 2.89% div yield. And storage is one of those very easy-to-understand industries....everybody is accumulating too much stuff and that will never change. It's one of those human behavior 'habit' stocks like Altria

[GregWeld]

Originally Posted by sik68

Hey Greg I'm today's pest

What do you think about Public Storage (PSA). The 5 and 10 year is very steady eddy-esque, and they have a 2.89% div yield. And storage is one of those very easy-to-understand industries....everybody is accumulating too much stuff and that will never change. It's one of those human behavior 'habit' stocks like Altria

You know -- it looks okay... there's a long history of growth... and they just reported a 23% increase in profits for the quarter AND increased their margin. They've doubled the dividend payout since 2007.... and that tells me that the company is "pro" shareholder.

My only quibble is the low 2.89% dividend based on todays price. It's a low dividend -- so you're relying on share price growth for your gain. It's also a relatively expensive stock solely based on per share price. So depending on how much $$ you've got to buy it - you may not be getting very many shares. Remember that the dividend is paid as a Dollar amount PER SHARE... so if you only have 10 shares - you're really not getting much of a payout.

So that's just some things to think about. It's why I own a lot of MO vs Philip Morse (PM) which is twice the share price.


So -- this is NOT a recommendation - that's not what this thread is about - and I'm not the resident stock picker.... I'm just trying to arm you with enough food for thought that you become dangerous all on your own.

PSA is a REIT (Real Estate Investment Trust)... if you compare REITS - there's a bazillion of them and they are all basically real estate plays. I own National Retail Properties (NNN). PSA is into renting storage space - NNN is into renting shopping centers but in the end they're real estate investments.

NNN pays a higher dividend @ 4.68% -- BUT has less share price growth... BUT the share price is far lower... So what I'm saying is -- I like your basic idea (real estate) but just be sure you go out and do a bit of homework to make sure that is the one that's the best bet for YOU.

[GregWeld]

BTW --- PSA just announced a 14% increase in their dividend to $1.25 per share.... Ya gotta love a company that increases the payout to the shareholders and this company has a stellar track record of doing that!

What that does is -- over time -- covers inflation... and as the payout increases but your cost stays fixed -- that increase becomes really nice!

[XLexusTech]

Greg any thoughts on the new strategy AAPL is potentially going to do.
"IPrefs"

[GregWeld]

Originally Posted by XLexusTech

Greg any thoughts on the new strategy AAPL is potentially going to do.
"IPrefs"

I don't have any thoughts about Apple except that I love their products. I have no position in the stock -- too scary for me. Great company. Scary stock.

When EVERYONE is talking about "THE STOCK" it's time to run like hell IMHO.


Like when everyone was dot.bomb.... and everyone was flipping houses.... and everyone I know SAID Apple was going to 1000 and GOLD was going to 2000.... RUN!

[toy71camaro]

Originally Posted by GregWeld

What that does is -- over time -- covers inflation... and as the payout increases but your cost stays fixed -- that increase becomes really nice!

Speaking of that... I just spent the last few hours documenting all my dividend stocks out of my paper "folder" and into Excel.

One of the things im starting to track is my "Yield on Cost". With the 2 of my core holdings increasing their Div % today, started to now track what the YOC is too.

So being the geek I am, I setup a spreadsheet to calculate my YOC and my Dividend payments each time i get one (i have to manually input the payment info, but it carries it over to various forms and adds it up for me so i can see my yearly dividend payouts).

At this point, my overall average YOC is 3.95% at this time. Not great, but not horrible. Its up from 3.88 last year, thanks to the two that announced increases today. It gives me a spot to keep track of my YOC for my 9 core (investing 102) stocks, and my total payout for each year.

I need to find something to offset that ~4% and get it up a bit this year.

[GregWeld]

Originally Posted by toy71camaro

Speaking of that... I just spent the last few hours documenting all my dividend stocks out of my paper "folder" and into Excel.

One of the things im starting to track is my "Yield on Cost". With the 2 of my core holdings increasing their Div % today, started to now track what the YOC is too.

So being the geek I am, I setup a spreadsheet to calculate my YOC and my Dividend payments each time i get one (i have to manually input the payment info, but it carries it over to various forms and adds it up for me so i can see my yearly dividend payouts).

At this point, my overall average YOC is 3.95% at this time. Not great, but not horrible. Its up from 3.88 last year, thanks to the two that announced increases today. It gives me a spot to keep track of my YOC for my 9 core (investing 102) stocks, and my total payout for each year.

I need to find something to offset that ~4% and get it up a bit this year.

The OFFSET is the growth in share price -- which is what gives you TOTAL RETURN. Do not discount this fact. Chasing YIELD only will have you being real upset with yourself and your account when we DO - and yes we will - get a correction. 4% dividend is good --- and coupled with growth -- it should be 9 or 10% a year. HUGE in this low interest rate environment.


Some of my core holdings are already UP 8 and 9% this year. Dude -- that's a whole years "growth" expectation in 6 weeks!! Will it last?? I'd love to think so -- but I also know why there are AVERAGES.... and if I hold on to the 8 or 9% to finish up the year - I'll be a happy man. So that means that at some point we're going to look like yo-yo's.... it can't just keep going up up up. Now that's not saying it can't go up 20% - but then my guess is we don't hold on to all of that. Love to.... but don't spend it.

[toy71camaro]

Originally Posted by GregWeld

The OFFSET is the growth in share price -- which is what gives you TOTAL RETURN. Do not discount this fact. Chasing YIELD only will have you being real upset with yourself and your account when we DO - and yes we will - get a correction. 4% dividend is good --- and coupled with growth -- it should be 9 or 10% a year. HUGE in this low interest rate environment.


Some of my core holdings are already UP 8 and 9% this year. Dude -- that's a whole years "growth" expectation in 6 weeks!! Will it last?? I'd love to think so -- but I also know why there are AVERAGES.... and if I hold on to the 8 or 9% to finish up the year - I'll be a happy man. So that means that at some point we're going to look like yo-yo's.... it can't just keep going up up up. Now that's not saying it can't go up 20% - but then my guess is we don't hold on to all of that. Love to.... but don't spend it.

Good point. that was in the back of my mind. I was explaining that to my GF last night over dinner, but when i wrote this, i didn't think about that.

The little man on wall street doesn't like me now that I rebalanced my 401k into and handful of diff mutual funds. Those are taking a hit. But he did seem to forget about my Investing 102 stocks, they're doing decent. lol.

And speaking of stock growth and total growth (stock + div), is there a way to calculate that? I'd like to keep track. Or is there a tool/page you use that gives you that basic info?

Edit: after a little further thinking about it.. to calc growth wouldnt you simply take your average purchase price and compare it against the current price? or would it be better to take your purchase cost, compared against the current value? If you do the 2nd option, then it seems you may be able to take your purchase cost and compare it against the current value + dividend payouts to get the total growth? Im not sure if thats right.. its been too long since math class. LOL

Edit 2: i think this explains it: http://stocks.about.com/od/evaluatin...ormualaeva.htm

[GregWeld]

Originally Posted by toy71camaro

Good point. that was in the back of my mind. I was explaining that to my GF last night over dinner, but when i wrote this, i didn't think about that.

The little man on wall street doesn't like me now that I rebalanced my 401k into and handful of diff mutual funds. Those are taking a hit. But he did seem to forget about my Investing 102 stocks, they're doing decent. lol.

And speaking of stock growth and total growth (stock + div), is there a way to calculate that? I'd like to keep track. Or is there a tool/page you use that gives you that basic info?

Edit: after a little further thinking about it.. to calc growth wouldnt you simply take your average purchase price and compare it against the current price? or would it be better to take your purchase cost, compared against the current value? If you do the 2nd option, then it seems you may be able to take your purchase cost and compare it against the current value + dividend payouts to get the total growth? Im not sure if thats right.. its been too long since math class. LOL

Edit 2: i think this explains it: http://stocks.about.com/od/evaluatin...ormualaeva.htm

YES -- that explains it.