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re: Looking for some good Dividend stocks under 100

Posted on 4/18/20 at 9:56 am to
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 4/18/20 at 9:56 am to
SO
Posted by rotrain
Member since Feb 2013
390 posts
Posted on 4/18/20 at 10:13 am to
quote:

i can get say double the amount of shares thus
getting more from the dividend per share.


No, you dont get more per share, you just get more shares. Also, the stock price doesnt matter. Google that sentence and you will find out why. All of this is basic arithmetic, and you got it wrong twice. Solid advice here: you are not ready to invest in individual stocks. Find a youtube channel and start with investing 101. Learn and practice with a simulated portfolio for about a year.
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
88842 posts
Posted on 4/18/20 at 10:21 am to
quote:

What does the share price have to do with anything?


nothing when wanting dividends. all about dividend PER SHARE. more shares=more $$

now maybe he wants capital gains.

I think he is confused.
Posted by castorinho
13623 posts
Member since Nov 2010
86453 posts
Posted on 4/18/20 at 10:22 am to
quote:

Well lets see if its a good company that maybe down because of the virus i can get say double the amount of shares thus
getting more from the dividend per share. With the chance of making more money off the stock when it comes back up after this is over. i do believe that is my goal

think about it this way. You have 1000 to spend. If all else is equal. Would you rather company A: $200/share with an annualized $5 dividend or company B: $50/share with an annualized dividend of $1?
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
88842 posts
Posted on 4/18/20 at 10:28 am to
quote:

i can get say double the amount of shares thus
getting more from the dividend per share.




see my post above. more shares does not increase the annual dividend per share rate. 1 share or 100k shares does not change the dividend per share rate. The fact you have more shares is what gets you more $$$$$

you want yield. annual dividend per share divided by stock price per share= annual dividend yield
This post was edited on 4/18/20 at 10:37 am
Posted by FLObserver
Jacksonville
Member since Nov 2005
15779 posts
Posted on 4/18/20 at 12:19 pm to
So owning 1000 shares of a good company that pays a dividend per share is not better than owning 100 shares of that same company? do i not get more for the dividend per year by owning the 1000 shares? that's all i'm asking? never said i was an expert but i'm learning
Posted by Grits N Shrimp
Kansas City, MO
Member since Dec 2014
647 posts
Posted on 4/18/20 at 1:11 pm to
quote:

CMO GPMT



I see what you did there
Posted by tirebiter
7K R&G chile land aka SF
Member since Oct 2006
10710 posts
Posted on 4/18/20 at 1:33 pm to
quote:

So owning 1000 shares of a good company that pays a dividend per share is not better than owning 100 shares of that same company? do i not get more for the dividend per year by owning the 1000 shares? that's all i'm asking? never said i was an expert but i'm learning


If I were you I would consider SCHD or VYM or both. Both good dividend ETFs holding numerous companies, then you don't have to keep an eye on individual stocks and worry about single stock risk. Both should be yielding right around 4% as of Friday pricing. Much better diversification and both target higher yielding companies than the broad market. If a company eliminates its dividend it gets dropped and replaced with a "new" holding. HDV is another ETF that pays higher dividends than the two mentioned, but holds lesser quality companies.
Posted by FLObserver
Jacksonville
Member since Nov 2005
15779 posts
Posted on 4/18/20 at 3:55 pm to
quote:

If I were you I would consider SCHD or VYM or both. Both good dividend ETFs holding numerous companies, then you don't have to keep an eye on individual stocks and worry about single stock risk. Both should be yielding right around 4% as of Friday pricing. Much better diversification and both target higher yielding companies than the broad market. If a company eliminates its dividend it gets dropped and replaced with a "new" holding. HDV is another ETF that pays higher dividends than the two mentioned, but holds lesser quality companies.


Thank you for this.
Posted by rintintin
Life is Life
Member since Nov 2008
16964 posts
Posted on 4/18/20 at 4:27 pm to
I think what people are trying to say is that stock "price" has little to do with dividend yield.

For instance CAT trades at $116 and pays a $4.12/share dividend, which is 3.54%.

Intel trades at $60.36 and pays a $1.32/share dividend, which is 2.17%.

If you owned 1 share of CAT vs 2 shares of Intel you are still making $1.48 more for your money even though you own more shares of Intel.

You shouldn't care so much about price if yield is what you are after.
Posted by GenesChin
The Promise Land
Member since Feb 2012
37815 posts
Posted on 4/18/20 at 4:31 pm to
quote:

So owning 1000 shares of a good company that pays a dividend per share is not better than owning 100 shares of that same company?


If company A, a $1000/share company, pays a 10% dividend they payout $100. So if you invest $1000 in company A you get 1 share and $100 in dividends

If company B, a $100/share company, pays a 10% dividend they payout $10. If you invest $1000 in company B you get 10 shares and $10x10shares = $100 in dividends


If you notice, for $1000 invested both companies paid out the same $100 amount in dividends


Posted by jralspanky
Fargo - Home of NDSU Bison
Member since Apr 2009
1490 posts
Posted on 4/18/20 at 5:33 pm to
What if company B pays 15% dividend
Posted by Pendulum
Member since Jan 2009
7908 posts
Posted on 4/18/20 at 7:58 pm to
Then company b has a 15% dividend. And company a still has a 10% dividend. Price per share is irrelevent.
Posted by kciDAtaE
Member since Apr 2017
17448 posts
Posted on 4/18/20 at 9:29 pm to
T
Posted by L S Usetheforce
Member since Jun 2004
23241 posts
Posted on 4/19/20 at 8:26 am to
you are welcome.
Posted by Overbrook
Member since May 2013
6372 posts
Posted on 4/19/20 at 9:13 am to
The problem is that you can't trust the dividends. BODs can reduce or eliminate them at their whim. And financial pressure stimulates said whim.
The best case is the old companies that have always paid a dividend - like the consumer staples. But that's in the 2-3% range. Yes XOM has always paid a dividend too and that yield is enticing, but can you trust it?
Posted by Boringaccountant
Member since Apr 2020
17 posts
Posted on 4/20/20 at 7:35 pm to
(no message)
This post was edited on 12/3/23 at 12:39 pm
Posted by TigerintheNO
New Orleans
Member since Jan 2004
44093 posts
Posted on 4/20/20 at 9:37 pm to
quote:

HDV is another ETF that pays higher dividends than the two mentioned, but holds lesser quality companies.


HDV Top 10 holdings are

Exxon, AT&T, JNJ, Verizon, Chevron, Pfizer, Cisco, Merek, Coke and Pepsi.

75% of the fund is in Entergy, Health Care, Communications, Consumer Staples sectors.
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