Investing 102

[GregWeld]

I looked at CON ED (ED) today -- just because it was one of the couple GREEN (up) shares so I wondered if there was some news... even though a utility company doesn't really produce much "interesting" news.... :>)


I see this STEADY EDDIE was UP over 11% already this year (since January 1st)...


There's that trade off between steadying your investments (more important in a DOWN market) and the lower dividend rate.... but a nice total return non-the-less! Gotta love it!

[96z28ss]

MCD Mcdonalds is really up today. I wonder if that stock will split soon?

[toy71camaro]

I've been happy with ED. I doubled down on them after the hurricane brought them down some. Im up 15% overall from them. Not bad!

[GregWeld]

Originally Posted by 96z28ss

MCD Mcdonalds is really up today. I wonder if that stock will split soon?

Never buy a stock based on a split or speculation of a split.... It's FUN when they do... but it's been proven that a split is nothing more than just that - a split. Having said that - that covers the Investing 102 portion - Mikey D's hasn't split since 1999... and they have a history of splitting - but not a particular "rhythm" i.e., every time they hit $100.... At $100ish it's a pretty "affordable" stock.. it's not like Google or Apple where you don't get many shares for your $5K. So you can't really make an argument that way.

In other words --- we'd just be guessing. Although wouldn't that be nice!

Originally Posted by toy71camaro

I've been happy with ED. I doubled down on them after the hurricane brought them down some. Im up 15% overall from them. Not bad!

That's a smart man right there! To recognize a temporary dip in the price and seize the opportunity! Brilliant move!

The difference is you saw a valid reason for the stock to dip -- but knew that it's a good company and they would recover from it.

That's a very different scenario than a J C Penny's (JCP) where they're down because they shot themselves in the foot. Now a "dip" in the share price might be an entry point - but you'd just be gambling because there's nothing you can point to that would tell you they'll recover from that injury.

One is smart and educated - one is gambling. Big difference.

[96z28ss]

Originally Posted by GregWeld

Never buy a stock based on a split or speculation of a split.... It's FUN when they do... but it's been proven that a split is nothing more than just that - a split. Having said that - that covers the Investing 102 portion - Mikey D's hasn't split since 1999... and they have a history of splitting - but not a particular "rhythm" i.e., every time they hit $100.... At $100ish it's a pretty "affordable" stock.. it's not like Google or Apple where you don't get many shares for your $5K. So you can't really make an argument that way.

In other words --- we'd just be guessing. Although wouldn't that be nice!


That's a smart man right there! To recognize a temporary dip in the price and seize the opportunity! Brilliant move!

The difference is you saw a valid reason for the stock to dip -- but knew that it's a good company and they would recover from it.

That's a very different scenario than a J C Penny's (JCP) where they're down because they shot themselves in the foot. No a "dip" in the share price might be an entry point - but you'd just be gambling because there's nothing you can point to that would tell you they'll recover from that injury.

One is smart and educated - one is gambling. Big difference.

No, I never bought based on a split. MCD is a good dividend stock.
However it would be nice if they split. This is the longest they have ever gone with out a split.

[toy71camaro]

Originally Posted by 96z28ss

No, I never bought based on a split. MCD is a good dividend stock.
However it would be nice if they split. This is the longest they have ever gone with out a split.

Yeah, it might be nice if they did. But who knows. as long as the company continues to do well and increase the divvy each year, I'm happy. Currently sitting on 3.46% yield on cost for MCD. I dont mind the wait. Its not "Great" but its not bad either, and hopefully it continues on up!

[GregWeld]

Originally Posted by toy71camaro

Yeah, it might be nice if they did. But who knows. as long as the company continues to do well and increase the divvy each year, I'm happy. Currently sitting on 3.46% yield on cost for MCD. I dont mind the wait. Its not "Great" but its not bad either, and hopefully it continues on up!

On a percentage basis --- McDonalds (MCD) is a low paying dividend... BUT!! Check the dividend out... because a scant 4 years ago -- they paid a whopping 38 CENTS per share per quarter (2008) and now they're paying 77 cents per share per quarter!

So they LIKE to increase the dividend! Think about it - has YOUR income DOUBLED since 2008??? Does your employer like you that much? :>) MCD likes you so much they've doubled your pay!


Don't ya just love to think about all these little nuances?


By the way -- I point these things out -- not to belittle your statement or to argue etc --- but rather -- because it's good info for INVESTING 102.

[toy71camaro]

Originally Posted by GregWeld

On a percentage basis --- McDonalds (MCD) is a low paying dividend... BUT!! Check the dividend out... because a scant 4 years ago -- they paid a whopping 38 CENTS per share per quarter (2008) and now they're paying 77 cents per share per quarter!

So they LIKE to increase the dividend! Think about it - has YOUR income DOUBLED since 2008??? Does your employer like you that much? :>) MCD likes you so much they've doubled your pay!


Don't ya just love to think about all these little nuances?


By the way -- I point these things out -- not to belittle your statement or to argue etc --- but rather -- because it's good info for INVESTING 102.

No worries! I meant the same thing when i said "its not great..." as in, 3.5 isnt a "great" dividend amount. its simply average, at best. BUT, if they continue to move forward like they have, that 3.5 could be quite a bit higher for me in a few years.

And yeah.. my employer hasn't changed my income in YEARS. lol.

Use me for an example all we want. its all about learning, whether it be good or bad, its better for the entire group.