Why Would I Not Sell Dividend Stocks Even After A 1000% Gain? [View article]
To take it one step further you need to compare the current PE of a stock to the historical PE of said stock as well as the PE of the stock in relation to the Industry it resides. There is no magic range of PE a stock should be in because they vary so much depending on the market and the industry they are in.
How To Take Some Of The Risk Out Of Tobacco Investing [View article]
I agree with your decisions Contraria2. Keep reading the articles on MO and why it should decline and why you should sell. In the meantime keep buying it and dripping it and getting rich while it goes up every year.I was swayed a couple of times to sell MO, that won't happen again. I've never once come close to regretting buying MO. The 2 times I sold it I regretted it both times. Until the earnings start declining, I won't be selling.
How To Take Some Of The Risk Out Of Tobacco Investing [View article]
"I’m not long the three stocks you mention, but PM, BATS.L and IMT.L and can tell you that, on a total return basis, as of Apr 30th, Tobacco is my worst performing sector"
Last 2 years PM +39%; S&P 500 +24% Last 3 years PM +105%; S&P 500 +48% Last 4 years PM +120% S&P 500 +85%. Last 5 years PM +75%; SAP 500 ~15%
Please show us the portfolio you own in which PM is the worst performing sector. If you use any long term metric, there are very few portfolios that will outperform PM.
How To Take Some Of The Risk Out Of Tobacco Investing [View article]
"You said: " It is almost impossible to go wrong buying and and holding the tobacco stocks."
That is not correct. Not today with the new or upcoming regulations in AU, CN, and other countries."
I once read a comment by a poster who sad he has been invested in MO for over 30 years and he said he has been reading articles on the decline of smoking, the lawsuits, taxes the whole time he owned the stock. And every time he reads that he smiled and bought more MO (or PM) and watched the stock continually deliver spectacular results. I have been in and out of MO since I started buying my own securties and the last time I bought MO was September of last year and I will never be out of it again. Constant bad news. Constants worries about smoking. And every year the earnings go up. The dividend goes up. And most of the time outperforms the S&P, especially when you consider the high dividend.
Sometimes the perspective of a long time shareholder is worth a lot more than any other analytic about a stock. You can speculate about the demise of smoking, but you won't convince me to ever sell my MO, or PM (my largest holding by a large margin).
Why Would I Not Sell Dividend Stocks Even After A 1000% Gain? [View article]
I must be doing something right, DGI, if you mention two of the three stocks I am most interested in at the moment. I just bought WFC and UNP and I am seriously considering making BF-B one of my next purchases. I feel the same about BF-B, its clearly selling at a premium, and why wouldn't it? Look at the 5 year chart and the earnings growth.
I feel the same way about UNP, its got a high PE ratio, but the earnings are growing at a good clip and it should sell at a premium. Trying not to fight the market and if a company can't seem to go down and the earnings follow, why not pay a premium?
Be Comfortable With Dollar-Cost Averaging Up [View article]
Outstanding post. Couldn't agree more. I also have seen some DGI who won't sell a stock unless they have 1 to replace it but I believe this is a mistake. To make such a trade correct you must be correct that it is a good time sell the one company and a better time to buy the other stock. I made this mistake when I decided $101 was a great time to buy CVX (it was), but I didn't really have a stock picked out to sell. But I wanted CVX so badly that I sold my WAG stock, at $32. WAG is now at $49 and I sold the CVX at $110. Live and learn.
I think a huge advantage is also to always have some cash on hand so that you don't miss that one great stock that almost never goes on sale so you can catch it when it does.
Be Comfortable With Dollar-Cost Averaging Up [View article]
Iainvest, Whether you bought at $87 or not is irrelevant to whether you should purchase some more now at $123. Just because you made money on 1 purchase does not mean you can afford to lose some on the next purchase. Or because you bought at a good valuation, does not mean its now ok to buy at a poor valuation. For the record I think CVX at $123 is still a good value, but my preference is to put in a limit order to buy CVX at $110 and wait til it hits.
These oil stocks have a fairly predictable pattern of having crashes here and there and my bet is it will drop to $110 sometime in the next 6 months. I could be wrong and I will miss out. But it sure seems like they always come down, if only for a day or two. If i'm right I have just picked up an additional 11% or so off the $123 price, or about 3 or so years of dividends.
I do not think Chowder is wrong for purchasing CVX at $123, doing so accomplishes all his goals. I am willing to roll the dice a bit on the past repeating itself and trying to pick up the extra bargain/yield.
I practice what i preach and I recently sold my COP at $62.77 and put in a limit order to buy those shares back at $58 a share. I'm taking a gamble, but if I am right, I will make an extra 8% on the COP shares. We shall see if I made a smart move. I think the market is due for a correction, who knows when that will happen is anybody's guess.
Lockheed Martin Corp.: Fundamental Stock Research Analysis [View article]
Very little I suspect RAS. Just picked up some LMT at 87. Even if there are cuts 5.2% dividend is nothing to sneeze at and the growth of the dividend has been out of sight. Great stock!
Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
ZGB952, I think the reality lies somewhere in the middle between what you and Robert are saying. I think in the short term of the market, where there is a lot of noise and fluctuations based on the whims of the market, I tend to agree with Robert that those changes haven't really caused a gain or a loss. Yes the value has changed slightly, but if you are a long term investor these changes don't matter so much and the ability to ignore market noise is an advantage in helping an investor avoid many of the human flaws we all have that prevent us from making money in the market.
In the long term I tend to agree that paper losses/gains are real and are just as important as dividends. Some will hide behind the argument that "I only care about the income, so a paper loss isn't real" but that just simply isn't true. If you buy a blue chip that pays 3% dividend and the price drops 50% and never recovers, it will be a long, long road back to even if you only care about the 3%. If you bought KO 20 years ago and you can honestly tell me you don't care about the capital appreciation...well, i simply don't believe you.
Dividend Stocks I Purchased Over The Past 2 Months [View article]
Good moves; you sound like you are about 20 years ahead of me in terms of the amounts you are able to invest on an annual basis. I'm still in the phase of getting to where the dividend payments accumulate enough to buy their own shares. I agree about making larger trades in order to minimize broker expenses. I originally started out 2 years ago doing $1,000 trades; now the minimum I do is $1200, usually because of the accumulated dividends. I would like to get the minimum up to $1500 a trade by the end of next year. I use ST also.
Interesting thoughts on using different brokerages. I only have my 401k and my roth through ST, I'll have to consider that for the future.
I also bought CVX last month at 101.24 and sold it today when it hit $110. It's a company I always wanted to own but when I saw it shoot up so fast and PM hit $84.70 today, so I just sold the CVX and bought more PM, which now makes up 38% of my roth.
Stock Buybacks Don't Reduce Share Count As Much As You Think [View article]
That would be great, but there must be a reason companies are not this transparent with buybacks. There certainly appears to be a certain % of buybacks that go wasted from a shareholder's perspective. However I would still prefer MSFT buy back shares than spend billions on skype. In other words there are worse things a company could do with profits than institute buybacks, but I am with the DGI crowd that I would mostly just prefer a bigger dividend increase.
Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
Because INTC is the most undervalued right now and has the highest yield of those 4 except for MO. I would buy INTC in a heartbeat over all of those stocks in a heartbeat (and did buy recently) based on current valuation alone except for MO. MO I have a special place in my heart for and would probably buy that one at the moment vs the other ones. Those are excellent stocks to own however and are difficult to get into because they are rarely on sale.
Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
Intel failed because it has no market share of a $5 billion market, but dominates a $41 billion market? Classic market over-reaction. Business will still be done on pcs and servers and that won't change because Iphones are cool. Selling INTC right now is a mistake. Collect the 4% dividend and wait for a better time to sell. I guarantee if you just set a limit sell order at $23 it will hit it in the next 6 months and you don't have to book the loss.
What If Long-Term Dividend Investors Buy Before A Crash? [View article]
Why Would I Not Sell Dividend Stocks Even After A 1000% Gain? [View article]
How To Take Some Of The Risk Out Of Tobacco Investing [View article]
How To Take Some Of The Risk Out Of Tobacco Investing [View article]
Last 2 years PM +39%; S&P 500 +24%
Last 3 years PM +105%; S&P 500 +48%
Last 4 years PM +120% S&P 500 +85%.
Last 5 years PM +75%; SAP 500 ~15%
Please show us the portfolio you own in which PM is the worst performing sector. If you use any long term metric, there are very few portfolios that will outperform PM.
How To Take Some Of The Risk Out Of Tobacco Investing [View article]
That is not correct. Not today with the new or upcoming regulations in AU, CN, and other countries."
I once read a comment by a poster who sad he has been invested in MO for over 30 years and he said he has been reading articles on the decline of smoking, the lawsuits, taxes the whole time he owned the stock. And every time he reads that he smiled and bought more MO (or PM) and watched the stock continually deliver spectacular results. I have been in and out of MO since I started buying my own securties and the last time I bought MO was September of last year and I will never be out of it again. Constant bad news. Constants worries about smoking. And every year the earnings go up. The dividend goes up. And most of the time outperforms the S&P, especially when you consider the high dividend.
Sometimes the perspective of a long time shareholder is worth a lot more than any other analytic about a stock. You can speculate about the demise of smoking, but you won't convince me to ever sell my MO, or PM (my largest holding by a large margin).
Why Would I Not Sell Dividend Stocks Even After A 1000% Gain? [View article]
Why Would I Not Sell Dividend Stocks Even After A 1000% Gain? [View article]
I feel the same way about UNP, its got a high PE ratio, but the earnings are growing at a good clip and it should sell at a premium. Trying not to fight the market and if a company can't seem to go down and the earnings follow, why not pay a premium?
Be Comfortable With Dollar-Cost Averaging Up [View article]
I think a huge advantage is also to always have some cash on hand so that you don't miss that one great stock that almost never goes on sale so you can catch it when it does.
Be Comfortable With Dollar-Cost Averaging Up [View article]
Whether you bought at $87 or not is irrelevant to whether you should purchase some more now at $123. Just because you made money on 1 purchase does not mean you can afford to lose some on the next purchase. Or because you bought at a good valuation, does not mean its now ok to buy at a poor valuation. For the record I think CVX at $123 is still a good value, but my preference is to put in a limit order to buy CVX at $110 and wait til it hits.
These oil stocks have a fairly predictable pattern of having crashes here and there and my bet is it will drop to $110 sometime in the next 6 months. I could be wrong and I will miss out. But it sure seems like they always come down, if only for a day or two. If i'm right I have just picked up an additional 11% or so off the $123 price, or about 3 or so years of dividends.
I do not think Chowder is wrong for purchasing CVX at $123, doing so accomplishes all his goals. I am willing to roll the dice a bit on the past repeating itself and trying to pick up the extra bargain/yield.
I practice what i preach and I recently sold my COP at $62.77 and put in a limit order to buy those shares back at $58 a share. I'm taking a gamble, but if I am right, I will make an extra 8% on the COP shares. We shall see if I made a smart move. I think the market is due for a correction, who knows when that will happen is anybody's guess.
Lockheed Martin Corp.: Fundamental Stock Research Analysis [View article]
Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
In the long term I tend to agree that paper losses/gains are real and are just as important as dividends. Some will hide behind the argument that "I only care about the income, so a paper loss isn't real" but that just simply isn't true. If you buy a blue chip that pays 3% dividend and the price drops 50% and never recovers, it will be a long, long road back to even if you only care about the 3%. If you bought KO 20 years ago and you can honestly tell me you don't care about the capital appreciation...well, i simply don't believe you.
Dividend Stocks I Purchased Over The Past 2 Months [View article]
Interesting thoughts on using different brokerages. I only have my 401k and my roth through ST, I'll have to consider that for the future.
I also bought CVX last month at 101.24 and sold it today when it hit $110. It's a company I always wanted to own but when I saw it shoot up so fast and PM hit $84.70 today, so I just sold the CVX and bought more PM, which now makes up 38% of my roth.
Stock Buybacks Don't Reduce Share Count As Much As You Think [View article]
Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]
Intel: Ignoring The Facts Can Cost Investors Money Even With A 4.40% Dividend Yield [View article]