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does anyone who knows what theyre doing invest heavily in dividend stocks?

Posted on 12/7/14 at 10:19 pm
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7131 posts
Posted on 12/7/14 at 10:19 pm
and if so, which ones?

im looking at dividata and there are some very high yeild dividend stocks that i've never heard of, some of which have been paying out high dividends for decades.

GNI
MSB
LPHI
FGP
CET
LXP

are these good investment tools for either (A) growth as a drip account or (B) income once enough stock has been acquired

TIA

Posted by bayoubengals88
LA
Member since Sep 2007
18915 posts
Posted on 12/7/14 at 10:38 pm to
Oh, goodness.
I say this because all of the companies/trusts that you posted are complete shite. One has decreased by over 100% since 2010, another hasn't raised it's dividend in over 10 years, and MOST of them are traded at rate well under 50k per day! Nothing about these companies are solid. Another is a penny stock, and one of them has negative earnings per share...These are not companies that attract drip investors.

Absurd dividends are not a good indicator. GNI for an example has a yield of 45% because the stock is tanking...and fast! Also, its average volume is 35k per day!!! Don't mess with anything that seldom gets traded!

**Look for solid companies (that you're familiar with!) in the 2-4% range for consistent dividends and a little growth (Proctor and Gamble, Johnson and Johnson, Exxon, 3M, Unilever, the Southern Company, Coca-Cola, McDonalds, Philip Morris). It doesn't matter how high the dividend is (see SDRL last month). It's more about how long the company has paid the dividend and consistent annual dividend increases.

Symbol:
PG
JNJ
XOM
MMM
UL
SO
KO
MCD
PM

You're a physician...pick a few companies to drip or choose a fund or an ETF and pour money into it/them. I like the commission free international ETFs offered through TD Ameritrade.

Full disclosure: For better or worse, within the past six months I have initiated DRIPs with Dow Chemical, General Mills, Intel, and Ford.
This post was edited on 12/7/14 at 10:54 pm
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7131 posts
Posted on 12/7/14 at 11:12 pm to
quote:

pick a few companies to drip or choose a fund or an ETF and pour money into it/them. I like the commission free international ETFs offered through TD Ameritrade.


SCHD

commision free and easy through schwab account

Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 12/8/14 at 7:47 am to
Ohh hey, a new subject.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80773 posts
Posted on 12/8/14 at 8:53 am to
Buy big oil right now while it's heavily discounted. Then look at the symbols bayoubengals listed
Posted by dwr353
Member since Oct 2007
2130 posts
Posted on 12/8/14 at 11:09 am to
Also look at COP; MRO; KMI
Posted by bayoubengals88
LA
Member since Sep 2007
18915 posts
Posted on 12/8/14 at 11:12 am to
MRO is insanely cheap right now.
Posted by LSUneaux
NOLA
Member since Mar 2014
4490 posts
Posted on 12/8/14 at 12:44 pm to
Bayoubengal, so you ended up buying F?
Posted by bayoubengals88
LA
Member since Sep 2007
18915 posts
Posted on 12/8/14 at 12:52 pm to
quote:

Bayoubengal, so you ended up buying F?

technically yes, just dripping $50/month haha. I have about 5.5 shares

My larger purchase that month went to ETFs.
Posted by LSUneaux
NOLA
Member since Mar 2014
4490 posts
Posted on 12/8/14 at 12:54 pm to
Don't worry when I was new to investing in 2011 I foolishly bought 5 shares of AA. Now I have 5.196 shares.
Posted by 704Reb
Memphis
Member since Aug 2010
2038 posts
Posted on 12/8/14 at 8:28 pm to
Bought MRO about 4 years ago and it's almost back to what it was when I bought it. At this point I think I'll be losing on it soon with how oil is doing
Posted by bayoubengals88
LA
Member since Sep 2007
18915 posts
Posted on 12/8/14 at 8:42 pm to
quote:

Bought MRO about 4 years ago and it's almost back to what it was when I bought it. At this point I think I'll be losing on it soon with how oil is doing

Just curious...why did you choose MRO? I've got about 15 o&g stocks on my watch list including this one, but It could be low 20s/teens before too long.
Posted by bayoubengals88
LA
Member since Sep 2007
18915 posts
Posted on 12/8/14 at 8:49 pm to
quote:

Don't worry when I was new to investing in 2011 I foolishly bought 5 shares of AA. Now I have 5.196 shares.

Just holding on?
I don't see this former Dow component doing much
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72619 posts
Posted on 12/8/14 at 9:39 pm to
Good job educating him on those risky pie in the sky yields from crap companies.
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 12/8/14 at 10:19 pm to
I'm taking a bath now on my energy hi-dividend stocks: BBEP, LRE and QRE.
Posted by BJ titsnbeer
Gods Country
Member since Mar 2011
217 posts
Posted on 12/8/14 at 10:49 pm to
GNI is a trust that is set to expire this next year, It will be worthless. Essentially people are paying $23 for what will amount to roughly $15-16 payout. FYI. It has been a stellar short if played right.
Posted by LSUneaux
NOLA
Member since Mar 2014
4490 posts
Posted on 12/8/14 at 11:26 pm to
quote:

Just holding on? I don't see this former Dow component doing much


I plan on pouring $1000 into it, hope it goes up 3-4% so I can be up $30 and cash out. The $30 covers the cost of transactions. 1 to buy in 2011, 2014, and the one to sell in 2014.

This might be ridiculous just to recoup $20, but I'm stubborn to principle.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72619 posts
Posted on 12/9/14 at 7:04 am to
quote:

BBEP,


I just bought 400 more shares when it dipped lower than what i got in at originally. Not worried. It's paying very well last i checked and it's not a crap company like some the OP mentioned that are on the fringe.
This post was edited on 12/9/14 at 7:06 am
Posted by Thib-a-doe Tiger
Member since Nov 2012
35374 posts
Posted on 12/9/14 at 10:10 am to
I do but I buy good investments, not speculative stuff.


Ask everyone who jumped on the SDRL train how that worked out for them



Dividend stocks are a large part of what made Buffet rich
This post was edited on 12/9/14 at 10:12 am
Posted by LSUneaux
NOLA
Member since Mar 2014
4490 posts
Posted on 12/9/14 at 11:42 pm to
Agreed. And I'm addicted to this shite. People like to spend money. I like to keep mine. I get a shite-eating grin buying a stock. I'll be sitting in my cubicle at work, and after seeing my order fill at the price I want, I'll get all excited in a whisper so no one hears me.
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