Investing 102

[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.

[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.

[CRCRFT78]

Just my take on the KO vs. PEP debate. I ended up going with Pepsi but I also plan to invest in Coke. Although the numbers are comparable and close I liked the fact that Pepsi also has a hand in the snack food business. Most people will buy a snack to go with their soda when they are on the go. Hopefully that snack company is owned by Pepsi when doing so. I felt that was just another aspect of their business model that could possibly help the stock when soda sales sit idle. I worked in the beverage industry for 8 years and remembered what it was like when I saw salesman supplement their lack of soda sales with other company owned products.

Right or wrong, it got me to think outside the box and look at Pepsi as more than a soda company and consider what may or may not help the business during down times. Not to say that Coke couldn't do the same, it was just another factor to consider along with all the charts.

[toy71camaro]

Awesome guys.. Thanks for the tips..

I know there wasnt necessarily a "right or wrong" answer.. thats not really what i was aiming for...

I was more trying to just compare apples to apples, and see what other "strategies" people might come up with to base their purchases on... Greg pointed out one "buy what you like" (and yes, i didnt put it, but I'm a PEP drinker when i do drink soda, so i would of likely went that way regardless)... but i also wanted to see any other ideas... Such as CRCRFT78 mentioned, thiking "outside" the box, and that PEP is also involved in more things than just "soda". Thanks for pointing that out, I didnt think to consider that.

Another mental note for me.. aside from the "bulk of the business, consider what "else" they "do" that could supplement their business". perhaps thats why PEP didnt have the large dip that coke had. Soda may have slowed, but snacks may have picked up, and vice versa.

I love "thinking out loud" like this.. sorry if i seem to babble a lot. LOL

[Bucketlist2012]

Originally Posted by GregWeld

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.

Yes..I am going into the family room now to blow my wife's mind...She loves money talk and the strategies we are using...Who benefits most ??? Her..

[GregWeld]

Well -- You guys got me digging around and I see a couple of things... and this is just open mike time -- not a "you should buy X because". This ain't how 102 should work -- it's about thinking and digging for info and doing the "work" so this is a perfect discussion.

When I OVERLAY PEP on KO chart -- they trade "share price wise" in near lockstep....

The 5 year SHARE growth is KO - 47% and PEP at DOWN 3%

10 year KO - up 44% PEP up 22%

That is SHARE PRICE not total return.

KO TOTAL RETURN --- 1 yr 12.4% 3 yr 87.7% 5 yr 73.3%


PEP TOTAL RETURN --- 1 yr 3.6% 3 yr 34.3% 5 yr 12.6%


Now -- I took my own advice and went back to look at all the info of why I chose Coke over Pepsi.... and this is exactly what this thread should be trying to do -- get people THINKING about all this stuff! I love it!!

[CRCRFT78]

I also thought to myself that I felt Pepsi had room for growth. Coke has the better looking chart over the various periods of time but I wondered if it reached a point where it may sit idle with a slower growth rate while Pepsi could possibly make a jump in growth. Will it happen? Who knows, but again, I was trying to think outside the box. Either way, I believe you can't go wrong investing in either of the two. Both will be around for the long haul and both will continue to be steady earners, its all a matter of choice.

[toy71camaro]

I cant tell for sure... Im having a tough time getting a chart to show exactly what i want (graph of share price. seems most show growth when comparing two stocks)...

anyhow, it seems as if they two counter each other, as in, if PEP is doing WELL, KO isn't so well, then, a year or two later KO catches up, surpasses PEP, an PEP takes a little "hiatus" for a couple years, then catches back up and surpasses KO, KO takes a little hiatus and repeats.. lol

in the end, it doesnt matter a ton either way.. but just trying to "figure" how to analyze a pair of stocks to try and help me determine which to purchase... (when, if the above seems true, PEP is on the "slide" it seems, so going that rough may result in a continued slide for a while = more shares for less $. couple years from now it will catch back up to KO), and then vice versa...

again, just thinking out load, using these two companies as an example so i can learn to apply my decision making process to other companies when i review them too.

Edit... all in all, i am breaking the rule of investing 102.. im comparing "timing" of the buy, which isnt as important as JUST BUYING ONE. lol

[GregWeld]

Originally Posted by CRCRFT78

Either way, I believe you can't go wrong investing in either of the two. Both will be around for the long haul and both will continue to be steady earners, its all a matter of choice.

Personally -- I think that's the most correct statement when comparing these two. Pick one - or pick both - you're reasonably assured that either is a good investment over the long haul.

[CRCRFT78]

What you want to remember also is what has been repeated throughout this thread. When the market starts to dip, a lot of investors will panic and sell. That's when you want to buy more. Pepsi/Coke are not here today/gone tomorrow companies. They will take their hits but will continue to move in the right direction. Steady eddies as Greg would say.