Investing 102

[WSSix]

Given that most of us are invested in dividend stocks, here's a website I found to be useful. Maybe you will too.

http://dripinvesting.org/tools/tools.asp

[GregWeld]

Originally Posted by Steve_O

I've spent some time looking for places to put my 'employees',
and find that my list is heavy on consumer staples. Can anyone suggest
a few things that they have, or are considering, so that I can
broaden my search?

The list I have is:

Philip Morris
Coca Cola
Costco
Altria
Kimberly Clark
Nike
McDonalds
Consolidated Edison
Southern Cos
AT & T
Johnson & Johnson
Eli Lilly
Merck
Caterpillar
Chevron
Kinder Morgan
National Retail

Also, I would probably consider these steady-eddy type picks.
I would also like to consider one or two that might be more 'exciting',
so if you like a company that has some growth potential, I may
have some room for a small share in something slightly riskier.

Thanks for all the good info shared on this thread, and for the good
things ahead!

Steve O

That's more than enough names to build a portfolio on.... All good solid companies. Don't spread yourself too thin.

Summer is usually pretty "volatile" -- look for big down days and be ready to nibble away at the shares on those days.

By September or October we'll know what the economy and the FED is probably going to do... so I wouldn't go all in... sneak up on the purchases.

My guess is -- we get a FED that changes course on their bond buying (QE) we'll get a big leg down and that's a nice opportunity to be buying.

[Steve_O]

Thanks for the replies. As a result of this thread I have decided to move
money from a rollover IRA account that is all in funds, (FUNDS, the new F-Bomb!). So I have just enough, (~$185K), to make it probably a good
idea to have 12-14 different holdings. I guess that is a good 'problem' to have.

I will also scale-in as I go, trying to apply the things discussed here.
It's a challenge to be methodical, when I feel like I wasted the time the
money has been under-performing.

I just bought KO this morning, (ex-date June 12), so if it dips, you'll know why!

Thanks!

Steve O

[Payton King]

Woman:
Do you drink beer?
Man: Yes

Woman:
How many beers a day?

Man:
Usually about 3

Woman:
How much do you pay per beer?

Man: $5.00 which includes a tip

(This is where it gets scary !)

Woman:
And how long have you been drinking?

Man:
About 20 years, I suppose

Woman:
So a beer costs $5 and you have 3 beers a day which puts your spending each month at $450. In one year, it would be approximately $5400 …correct?

Man:
Correct

Woman:
If in 1 year you spend $5400, not accounting for inflation, the past
20 years puts your spending at $108,000, correct?

Man:
Correct

Woman:
Do you know that if you didn’t drink so much beer, that money could have been put in a step-up interest savings account and after accounting for compound interest for the past 20 years, you could have now bought a Ferrari?

Man:
Do you drink beer?

Woman:
No

Man:
Where’s your Ferrari?


Now we know why Greg has that large pile of cash. LOL

[GregWeld]

Okay! That's funny as hell right there! Love the logic!



Large pile of cash??? Because I don't drink!!!! Don't smoke either.... so I put all my loose change in a jar at the end of every day...

[toy71camaro]

LOL. I used that same principal the other day on another forum when they were talking about playing the lottery.

[Sieg]

OK G-Dub, educational opportunity?

I just received this offer:

Pfizer Inc. is offering to exchange up to 400,985,000 shares of Zoetis Class A common stock (which Pfizer currently owns) for outstanding shares of Pfizer common stock.

For each $100 of your Pfizer common stock accepted, shareholders will receive approximately $107.52 of Zoetis common stock, subject to the upper limit of 0.9898 of a share of Zoetis stock per share of Pfizer stock. The value of the shares will be based on the volume weighted average price (VWAP) for the stock on the NYSE during the three days up to and including the expiration date. Cash will be paid in lieu of fractional shares.

If the offer is oversubscribed, shares tendered will be accepted on a pro rata basis. However, the Company will accept all shares tendered by holders who hold an aggregate of 99 shares or less and tender all of their shares. For purposes of this offer, aggregate is defined as the combined total number of shares held by a beneficial owner; this includes shares held in separate accounts registered to the same beneficial owner. Submitted instructions for holders that beneficially own an aggregate of 100 shares or more will be subject to proration.

The offer is conditioned upon, among other things, the Minimum Amount Condition, opinions of counsel regarding non-recognition of gain and loss for tax purposes, the continued validity and effectiveness of the private letter ruling from the IRS and other customary conditions. The Company reserves the right to amend, extend or terminate the offer.

If you wish to participate in the offer, you must deliver your response to Schwab. If you have any questions regarding the offer or for a copy of the prospectus, please contact Georgeson Inc. (the Information Agent) directly at (866) 628-6024.

Your Choices:

Exchange: Exchange all or a portion of your Pfizer shares, subject to proration.

Decline/Take No Action: If you do not wish to participate in this offer, no further action is required and you will continue to hold your Pfizer shares.
-------------------------------

PFE - .24 dividend - Human pharmaceuticals
ZTS - .064 dividend - Animal pharmaceuticals

PFE division spin-off.

I'm holding 208 shares of PFE..........

[GregWeld]

Well.....


Here's what I'd have to go on.


PFE (Pfizer) is up almost 28% for 1 year -- and over 10% for YTD... and they pay a 3.46% dividend (based on todays price)


ZTS (really ZITS??!?!?!) Zoetis is up 4.48% for YTD and they have no history longer than that. They pay way less dividend so IMHO you're not getting paid to wait - and you're (so far) not getting the offsetting growth which would make up for the lack of the dividend.

So if it was my account -- I'd stick with PFE.

[Sieg]

Here's a little history on the IPO and the architecture:
http://seekingalpha.com/article/1147...preview-zoetis

It's certainly not going to set the world on fire but could end up being a moderately priced Steady Eddy so to speak. The way I see it the world will always need healthy animals for food and companionship and this company appears to own the market share globally.

Pfizer is a good stock though I'm a little concerned about the number of expiring patents and competition from the generic sector, especially with the healthcare train wreck that's coming in January 2014.

[GregWeld]

Originally Posted by Sieg

Here's a little history on the IPO and the architecture:
http://seekingalpha.com/article/1147...preview-zoetis

It's certainly not going to set the world on fire but could end up being a moderately priced Steady Eddy so to speak. The way I see it the world will always need healthy animals for food and companionship and this company appears to own the market share globally.

Pfizer is a good stock though I'm a little concerned about the number of expiring patents and competition from the generic sector, especially with the healthcare train wreck that's coming in January 2014.

This is EGG SACK LEE why I tell everyone -- PICK YOUR OWN STOCKS -- because if you listen to someone else... then the reasons YOU own them won't wash -- and if they go down - you're quick to sell rather than hold and add more. INVESTING IS A LOT MORE MENTAL than most people understand.