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re: Dividend stocks and DRIPs as a long term investment vehicle
Posted on 6/30/13 at 6:29 pm to nelatf
Posted on 6/30/13 at 6:29 pm to nelatf
Not a direct one but a broker like etrade allows it...It wont matter which one you choose when 2033 rolls around....$2800 is like 35 shares of PM that's over $110/yr when you add in forward yield. Visa will have to be mainly on growth your 17 shares will pay you $20/yr in dividend...again what rate is that $2800 earning at your bank? It earns 3.9% and growing Pm today
It literally does not matter which stock you pick as long as it doesn't go bankrupt and keeps paying dividends, when you retire at 60 in 30-35 years you will be significantly wealthier than you are today.
I chose PM as mine for many reasons but mostly bc i love the gigantic yield and yield growth it offers while being over $100B company, most blue chips don't offer yields approaching 4% today and over 5% in years past.
Any choice of coke,exxon,chevron,general mills,pepsi,altria etc will give you alot more than you started with today if you set it an forget it, if you add to it monthly you will be richer than you can ever imagine.
It truly doesnt matter which blue chip you choose, all will outperform cash or bonds and probably whatever index you choose counting for managements fees. Your yield on PM might be $3.40 today but it will probably $50/share in 30 years, then what? your meager 35 shares if you add no more will be paying you $2000/year in 30 years, thats incredible. DRIPs are very powerful as long as companies don't go bust. I see lots of growth in PM,and I see a government reliance which means there is no way in hell they go bust.... I could be wrong, but I have my reasons....
It literally does not matter which stock you pick as long as it doesn't go bankrupt and keeps paying dividends, when you retire at 60 in 30-35 years you will be significantly wealthier than you are today.
I chose PM as mine for many reasons but mostly bc i love the gigantic yield and yield growth it offers while being over $100B company, most blue chips don't offer yields approaching 4% today and over 5% in years past.
Any choice of coke,exxon,chevron,general mills,pepsi,altria etc will give you alot more than you started with today if you set it an forget it, if you add to it monthly you will be richer than you can ever imagine.
It truly doesnt matter which blue chip you choose, all will outperform cash or bonds and probably whatever index you choose counting for managements fees. Your yield on PM might be $3.40 today but it will probably $50/share in 30 years, then what? your meager 35 shares if you add no more will be paying you $2000/year in 30 years, thats incredible. DRIPs are very powerful as long as companies don't go bust. I see lots of growth in PM,and I see a government reliance which means there is no way in hell they go bust.... I could be wrong, but I have my reasons....
This post was edited on 6/30/13 at 6:45 pm
Posted on 6/30/13 at 7:34 pm to ThaBigFella
So, the net profit margin of 40% for Visa means they net 40% a year?
Posted on 6/30/13 at 7:39 pm to wegotdatwood
What does visa make percentage wise on every swipe? More on CC's than debit?
Posted on 6/30/13 at 8:19 pm to ThaBigFella
I am buying V tomorrow through my fidelity account. Will keep ya posted on the drip.
Posted on 6/30/13 at 8:22 pm to SmackoverHawg
quote:
And porn. The world LOVES porn.
I typed PORN in my google stock quote field. It did not yield any results.
Posted on 6/30/13 at 8:32 pm to nelatf
I'm torn on buying V or adding more PM. That net profit to me seems insane.
Posted on 6/30/13 at 10:02 pm to wegotdatwood
I'm not sure about what percentage exactly goes to Visa or the bank processing, but my merchant account charges
1.5% for Visa
2.95% for Amex
so obviously Visa saves me a little money, is more widely used and then there's a swipe fee too which varies by merchants based on volume from .15-.25 per swipe. So My businesses grossed nearly $20M last year with $16M or so on CC that means close to $200-250k in CC fees, yes Visa makes $20k/month from me without doing any work.....the majority of credit cards are Visa since it's much more popular than Amex due to Amex being tougher to get, having to pay in full, and credit checks required.
So when the price of gas goes up, when the price of groceries goes up, when the price of your vet goes up, that 1.5% visa charges is slightly higher. Combine that with the fact they dont issue credit like Amex and you have basically a toll way, if you have a visa card and default on the payment, that's the issuing banks problem, not visa's. American Express though if you default, it's American Express' issue to deal with. That is another big reason I like Visa, along with the massive dividend growth percentage wise the last 2 years.
Also as I mentioned earlier, I read their annual report, the adult industry is huge, they're basically the only player along with mastercard, they charge every porn site $750/year to process CC and then via Epoch and CCbill they charge 14.5% per transaction due to the high chargeback volume. I would go under if I had 14.5% CC fees, but porn sites operate on such a high margin it doesn't hurt them. Mastercard initiated a $500/year annual fee now, and porn sites are dropping it in droves bc they're not gonna pay $750 to visa and $500 to mastercard, so Visa is slowly monopolizing the adult industry.
As I said, Ive done my homework, I see how much visa makes off me, and I see the overall shift towards credit cards, my business is over 80% CC today. Could an economic slowdown affect Visa? Sure, but at the same time 80% of the world doesn't even use cards yet, when will they? Who knows but you get new users everyday, not less. I love it, I love it alot,I wish the yield were higher today, bc it would be my #1 slot, but by the time whatever I could buy today would yield 5-6% will be 15 years at the earliest even with 12-15% annual dividend growth. For young people with 30-40 years, it's a home run with a very big moat, a key thing warren buffett seeks......o and by the way he owns over 1 million shares himself.
As someone who watches it alot, I'd wait and buy under $180 if you like it. PM is at $86 which is 10% off its 52 week high of $96.50. Visa is literally at its 52 week high, granted its up like 70% this year, will a few bucks matter in the long run? no, but if you're the type that watches day to day, it probably will pull back. PM though I feel is pretty much at its low for the time being and will be closer to $95 after the dividend increase in september.
1.5% for Visa
2.95% for Amex
so obviously Visa saves me a little money, is more widely used and then there's a swipe fee too which varies by merchants based on volume from .15-.25 per swipe. So My businesses grossed nearly $20M last year with $16M or so on CC that means close to $200-250k in CC fees, yes Visa makes $20k/month from me without doing any work.....the majority of credit cards are Visa since it's much more popular than Amex due to Amex being tougher to get, having to pay in full, and credit checks required.
So when the price of gas goes up, when the price of groceries goes up, when the price of your vet goes up, that 1.5% visa charges is slightly higher. Combine that with the fact they dont issue credit like Amex and you have basically a toll way, if you have a visa card and default on the payment, that's the issuing banks problem, not visa's. American Express though if you default, it's American Express' issue to deal with. That is another big reason I like Visa, along with the massive dividend growth percentage wise the last 2 years.
Also as I mentioned earlier, I read their annual report, the adult industry is huge, they're basically the only player along with mastercard, they charge every porn site $750/year to process CC and then via Epoch and CCbill they charge 14.5% per transaction due to the high chargeback volume. I would go under if I had 14.5% CC fees, but porn sites operate on such a high margin it doesn't hurt them. Mastercard initiated a $500/year annual fee now, and porn sites are dropping it in droves bc they're not gonna pay $750 to visa and $500 to mastercard, so Visa is slowly monopolizing the adult industry.
As I said, Ive done my homework, I see how much visa makes off me, and I see the overall shift towards credit cards, my business is over 80% CC today. Could an economic slowdown affect Visa? Sure, but at the same time 80% of the world doesn't even use cards yet, when will they? Who knows but you get new users everyday, not less. I love it, I love it alot,I wish the yield were higher today, bc it would be my #1 slot, but by the time whatever I could buy today would yield 5-6% will be 15 years at the earliest even with 12-15% annual dividend growth. For young people with 30-40 years, it's a home run with a very big moat, a key thing warren buffett seeks......o and by the way he owns over 1 million shares himself.
As someone who watches it alot, I'd wait and buy under $180 if you like it. PM is at $86 which is 10% off its 52 week high of $96.50. Visa is literally at its 52 week high, granted its up like 70% this year, will a few bucks matter in the long run? no, but if you're the type that watches day to day, it probably will pull back. PM though I feel is pretty much at its low for the time being and will be closer to $95 after the dividend increase in september.
This post was edited on 6/30/13 at 10:13 pm
Posted on 7/1/13 at 8:48 am to wegotdatwood
adding on to the 52 week high, today is fap day if you owned visa.
Posted on 7/1/13 at 10:23 am to ThaBigFella
Well...I helped the market today. Made some quality purchases. Left some cash on the sideline to pick up more at a later date.
Posted on 7/1/13 at 10:39 am to ThaBigFella
Funds aren't available to trade yet. Next week, hoping for a fat correction
Posted on 7/1/13 at 11:19 am to ThaBigFella
AAPL going nuts today...so glad i jumped in at $391
Posted on 7/1/13 at 11:34 am to Toula
apple is a nice trade, but I wouldn't bet on apple thriving in say 40 years....
This post was edited on 7/1/13 at 11:40 am
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