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re: Dividend stocks and DRIPs as a long term investment vehicle
Posted on 6/24/13 at 9:22 pm to ThaBigFella
Posted on 6/24/13 at 9:22 pm to ThaBigFella
Was that the rant in which I casually liquidated all my holdings and put 100% of my portfolio into LVS at the behest of you and your jeering challenges? 
Come on man.
Come on man.
0
Posted on 6/24/13 at 9:25 pm to ThaBigFella
quote:
They've raised taxes on cigarettes for years. That's why smoking rates have declined dramatically and profits continue to go up. The addicts will always pay, not too many products out there can say that. We can raise taxes drastically still. A tin of skoal is $5 in the US, it's $20 in canada mostly taxes.....the government knows this and we will get there eventually
Mock me all you want, but for the last 30+ years smoking rates have been on the decline in america, yet investors in altria retuned nearly 50,000%, nothing matched that return in that time frame.
addicts will always pay, just remember that. I see it on a daily basis running between my stores. Poor people who can't even pay rent find a way to pay $70 for a carton of newport while they earn $300/week. It's fascinating, they find a way to buy it. I wish altria owned newport but thats a lorillard brand, but it's the brand of choice amongst the poor. How funny is that, the poorest people love the most expensive menthol cigarettes out there.Quite Ironic.
The post you are responding to was scarastic.....he wasn't bringing up why cigerette taxes wont hurt your plan....
Posted on 6/24/13 at 9:38 pm to ThaBigFella
quote:
ThaBigFella
I know, but, it's fun to be able to buy more shares.
Posted on 6/24/13 at 9:50 pm to ThaBigFella
BigFella, it's going to be hard for you to believe this, but I actually agree with your analysis on Visa.
Posted on 6/24/13 at 9:51 pm to Chris Farley
This thread has come full circle 
Posted on 6/24/13 at 9:52 pm to wegotdatwood
Do you like Google? Anything in their way?
Posted on 6/24/13 at 9:56 pm to wegotdatwood
I don't own google, I don't know much about it, but I wanted to buy $5K worth of shares for my nephew who is is a teen like my uncle did for me many years ago and I asked him what he wanted trying to get him to be interested in stocks....he wanted GOOGLE, he swore youtube was the future and explained to me how much money people make off making silly youtube videos and how they dominate cell phones and make money off searches and had driverless cars coming blah blah blah. It was something I've never looked at bc of a lack of dividend but I went ahead and gave him a whopping 6 shares at just under $800. I hope it works out well for him bc my $5000 gift in the 90s was worth over $41k as of this year.
This post was edited on 6/24/13 at 9:57 pm
Posted on 6/24/13 at 10:00 pm to ThaBigFella
So you think Visa would have similar results in the future? Visa scares me in a downturn.
Posted on 6/24/13 at 10:07 pm to wegotdatwood
I don't know man, Im not a wizard, all I can tell you is
1.we use credit cards for more and more stuff
2.the cost of everything is constantly rising
3.internet shopping is up big time
4.80% of the world still uses cash
Now whether people start spending less in general bc of lack of money in a bad economic downturn, I couldn't tell you but I can tell you their projected earnings are to grow at 15% annually for the next 5 years, but those are just predictions.
I can tell you we're not going to go back to the 1970's where it was all cash.So I like it alot, I own a little, but for me, as I've said before it doesn't fit my retire in 10 years or less plan bc of the low dividend. I also said if I was young it would be my #1 holding but I'm nobody, I'm just a normal guy ha.
Just read this piece, if you're young I suggest you read it
Your Retirement Income Is On Sale
1.we use credit cards for more and more stuff
2.the cost of everything is constantly rising
3.internet shopping is up big time
4.80% of the world still uses cash
Now whether people start spending less in general bc of lack of money in a bad economic downturn, I couldn't tell you but I can tell you their projected earnings are to grow at 15% annually for the next 5 years, but those are just predictions.
I can tell you we're not going to go back to the 1970's where it was all cash.So I like it alot, I own a little, but for me, as I've said before it doesn't fit my retire in 10 years or less plan bc of the low dividend. I also said if I was young it would be my #1 holding but I'm nobody, I'm just a normal guy ha.
Just read this piece, if you're young I suggest you read it
Your Retirement Income Is On Sale
This post was edited on 6/24/13 at 10:11 pm
Posted on 6/24/13 at 10:11 pm to ThaBigFella
With that, would you suggest to have more than 1k each time because it costs so much to get 1 share?
Posted on 6/24/13 at 10:27 pm to ThaBigFella
Big Fella, I'm sure you won't have any experience with this, but,
I'm looking at John Deere right now. 15% off the 52 week high ($81 vs $95.6) P/E is below 10. Pays a $2.04 (2.50%) dividend. Their dividends have increased a good margin the past decade.
I'm thinking this is a buy. With the way we're populating this world, and people getting richer, food is going to be in great demand. Plus, I've always heard, 'invest in what you know.' trust me. our farm pays a lot of money to john deere
Outside opinions?
I'm looking at John Deere right now. 15% off the 52 week high ($81 vs $95.6) P/E is below 10. Pays a $2.04 (2.50%) dividend. Their dividends have increased a good margin the past decade.
I'm thinking this is a buy. With the way we're populating this world, and people getting richer, food is going to be in great demand. Plus, I've always heard, 'invest in what you know.' trust me. our farm pays a lot of money to john deere
Outside opinions?
Posted on 6/24/13 at 10:33 pm to jimbeam
I don't know anything about john deere, but if you feel they're solid, have a great history, are trading at a great price and their balance sheet indicates they're not going bankrupt anytime soon.....then do it
What's the worst that could happen? A bankruptcy and you lose what you put in, life goes on, but it will be a learning experience for you.
Even a decline in price won't be bad bc you will lower your cost basis with the dividend. I think you should use it as an opportunity to really learn how stocks work. Why don't you find john deere's balance sheet and begin looking at it for the last few years and ask any questions you have on here, hopefully you will get some good responses and not too many wiseguys who think you should know it all like them.
Well all started somewhere
PS Seeking Alpha is a great place to get free articles and community insight, here's there section on Deere
LINK
What's the worst that could happen? A bankruptcy and you lose what you put in, life goes on, but it will be a learning experience for you.
Even a decline in price won't be bad bc you will lower your cost basis with the dividend. I think you should use it as an opportunity to really learn how stocks work. Why don't you find john deere's balance sheet and begin looking at it for the last few years and ask any questions you have on here, hopefully you will get some good responses and not too many wiseguys who think you should know it all like them.
Well all started somewhere
PS Seeking Alpha is a great place to get free articles and community insight, here's there section on Deere
LINK
This post was edited on 6/24/13 at 10:35 pm
Posted on 6/24/13 at 10:33 pm to jimbeam
Don't most people purchase used equipment for farms? Mass market will choose another brand, imo.
Posted on 6/24/13 at 10:36 pm to wegotdatwood
they have made a strong push in south America I know. Most big farms buy new and either 1. run em into the ground 2. keep a few years and sell, then buy new again to smaller farms
we have always bought new, as well as most farmers we know. if we are going to larger corporate type farms, I would assume this would become more of the norm
Also, Deere has always been Deere. Almost all other equiwnt companies have been bought and sold at points in time. Deere has a solid foundation that I like
DE has a
-debt/equity of 0.3 (pretty low?)
-current ratio of 2.2 (maybe too high?)
what other green/red lights should I be looking for?
we have always bought new, as well as most farmers we know. if we are going to larger corporate type farms, I would assume this would become more of the norm
Also, Deere has always been Deere. Almost all other equiwnt companies have been bought and sold at points in time. Deere has a solid foundation that I like
DE has a
-debt/equity of 0.3 (pretty low?)
-current ratio of 2.2 (maybe too high?)
what other green/red lights should I be looking for?
This post was edited on 6/24/13 at 11:18 pm
Posted on 6/24/13 at 10:44 pm to ThaBigFella
With Visa, aren't they basically a middle man? Why wouldn't the major banks just have their own system?
Posted on 6/24/13 at 11:36 pm to jimbeam
quote:
jimbeam
Earlier in the thread, you mentioned you might take some finance classes. Look into FIN 3845. I think you would definitely enjoy it.
Posted on 6/24/13 at 11:38 pm to acgeaux129
definitely will look into that. I love this kind of stuff.
Posted on 6/24/13 at 11:52 pm to jimbeam
Yeah, most of the other finance classes you might think about are going to have 3716 and possibly 3826 as prereqs. I'm guessing that may be the case for this one, but everyone has to do an application and interview with Prof. O'Connor anyway, so she may let you in if you make a decent case for it and show that you know a good amount.
You learn how to use Bloomberg primarily and also mess with Factset, and you get a rudimentary intro into EPS modeling. Then the class devises a portfolio and makes trades, mostly at the end of the semester. Mostly late undergrads and grad students.
You learn how to use Bloomberg primarily and also mess with Factset, and you get a rudimentary intro into EPS modeling. Then the class devises a portfolio and makes trades, mostly at the end of the semester. Mostly late undergrads and grad students.
This post was edited on 6/24/13 at 11:53 pm
Posted on 6/25/13 at 12:24 am to acgeaux129
To all: With dividends in my roth ira be tax free while it's in and I haven't drawn out? Or, will I pay taxes each year on them?
Posted on 6/25/13 at 2:35 am to wegotdatwood
A Roth is a tax shelter.
As long as you don't pull money out of it, whatever happens in it doesn't incurr taxes.
As long as you don't pull money out of it, whatever happens in it doesn't incurr taxes.
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