- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: the "correction" seems to have begun.....how low do we go? prediction thread
Posted on 6/5/13 at 12:30 pm to L S Usetheforce
Posted on 6/5/13 at 12:30 pm to L S Usetheforce
quote:
I would have had to sell some Altra at 70 in 05
Anyone care to tell me why it would be smart to invest in them now? Seems like their time has sailed, especially with recent onslaught of legislation against Smoking
Posted on 6/5/13 at 12:40 pm to Lsut81
If I would have took BigFella's advice and read this in 2008........When I dumped 10000k into Ford after the crisis and had 9500 shares I'd be a happy man today........instead I sold at 4...........
entered with 10k entry left with around 40k.......felt like I was a genius.
today I'd have 150k
entered with 10k entry left with around 40k.......felt like I was a genius.
today I'd have 150k
This post was edited on 6/5/13 at 12:50 pm
Posted on 6/5/13 at 12:55 pm to L S Usetheforce
quote:
Anyone care to tell me why it would be smart to invest in them now? Seems like their time has sailed, especially with recent onslaught of legislation against Smoking
Well as a convenience store owner i can tell you a few reasons why altria is king
1. 4.92% yield so even with 0 growth you will make nearly 5%
2.Smoking rates are declining but altria ups prices on everything every year and people keep buying.
3.Altria isn't just marlboro, it's skoal,copenhagen, benson and hedges and many more.
4.Altria owns 27% of SABMiller, yes miller lite and many other famous beer brands all over the world and many wine companies
5.Legal Marijuana seems like its on the horizon and if any major company is involved in will be altria
6. the 800 lb gorilla in the room, some studies show states rely so much on tobacco taxes that they would have to DOUBLE our current income taxes to offset a loss of tobacco tax.....so not happening.
7.tobacco taxes are raised constantly bc the government knows smokers will pay it and keep going, listen I have 3 convenience stores in texas and 1 in florida. In texas I can go to an indian reservation and pay $2 for a pack of marlboro without a tax sticker, come to my stores its $6.19....that's all tax, I buy those for $5.10/pack. Up in New York those packs are $13-14....all taxes....bottom line is altria is profitable selling those cigs to stores at $1.50 or whatever they price it at bc cigs cost nothing to product.
Smoking is going nowhere, moreover smoking + 25% of miller lite is enough for me, throw in all the other big brands they own and altria is a slam dunk for me, 4.92% yield + even just awful 4% appreciation = 8.92% annual return....
Like I said, I've owned it for 20 years and Im up so much, since 1971 altria is up 48,000% the best perfomer on the planet. I love it, own tons, but I'm pushing more into PM these days bc its the same company overseas selling the same products but has more growth prospects and the dividend is just 1% lower
Altria is solid at these level but its dividend payout is like 85% and with revenues not growing much it's not gonna grow much or grow the dividend much but 4.92% is massive and the compounding with new shares is amazing I LOVE it but i think buying today your better with philip morris
and to answer your question, the united states government needs altria more than you think.......and personally i think the government knows that smokers will pay up whatever they ask so they keep going up. You know Copenhagen thats like $4 in texas is $20/tin in canada? So about $100/sleeve. People in texas would shite themselves if it hit that but I saw it with my own eyes in toronto
This post was edited on 6/5/13 at 1:06 pm
Posted on 6/5/13 at 12:56 pm to ThaBigFella
quote:
If I would have took BigFella's advice and read this in 2008........When I dumped 10000k into Ford after the crisis and had 9500 shares I'd be a happy man today........instead I sold at 4........... entered with 10k entry left with around 40k.......felt like I was a genius. today I'd have 150k
We all have those, like I said 90% of my portfolio is hold for life, 10% i trade. I had a ton of LVS in 2009 for under $1......its $57 or 58 today, so im right there with you
Posted on 6/5/13 at 12:59 pm to ThaBigFella
quote:
Well as a convenience store owner i can tell you a few reasons why altria is king
Thanks for doing the work for me...
***LogsintoaccounttoputbuyorderonAltria***
Posted on 6/5/13 at 1:12 pm to Lsut81
Also forgot to mention my favorite part of altria, poor people
Love to buy cigarettes before they pay bills! Also it's highly addictive and keeps people coming back...both horrible things...but great for investors
like i said i feel PM @ 90.70 is a much better deal than MO @ 35.70......PM has superstar potential overseas and still has a 3.75% yield
Love to buy cigarettes before they pay bills! Also it's highly addictive and keeps people coming back...both horrible things...but great for investors
like i said i feel PM @ 90.70 is a much better deal than MO @ 35.70......PM has superstar potential overseas and still has a 3.75% yield
This post was edited on 6/5/13 at 1:26 pm
Posted on 6/5/13 at 1:53 pm to ThaBigFella
BigFella..........I really enjoyed this thread and your insight..........
Posted on 6/5/13 at 3:41 pm to ThaBigFella
quote:
90% of my portfolio is hold for life
Is this 100% individual stocks? The reason I ask is i have always been an index investor because I dont want to actively manage. Just keep on adding on. But, this sounds like you are doing the same thing but with better dividend yield than my 1.97% from my index fund.?
Posted on 6/5/13 at 4:25 pm to ThaBigFella
quote:
Philip morris
Altria
Visa
Coke
Exxon
Chevron
Conoco
Shell
Do you buy these all through your broker, or do you do any of the companies' direct dividend reinvestment plans?
This post was edited on 6/5/13 at 4:26 pm
Posted on 6/5/13 at 4:34 pm to Ace Midnight
I buy all through Etrade, been with them forever.
PM has a 3.75% yield thats doubled in the last 5 years, some of my spin off shares at $40 are yield 10% today
MO has a 4.92% yield that grows annually
Mcdonalds yield is 3.16% and growing
Chevron is 3.35% and growing
Shell is over 5% yield
Visa has the lowest yield @ .75% but its grown its dividend by 50% each of the last 2 years which to me is the biggest metric i follow, along with the fact that it has an 80% operating margin so i feel 10-20 years from now the dividend is gonna be massive on visa
but yes, that's why i dont index, indexing is safer, but realistically phillip morris,altria,mcdonalds,chevron,Visa is safe enough
PM is the one along with visa i see with the biggest growth in the dividend moving forward, PM bc their payout ratio is low today, combined with growing world population, and the sad fact PM is allowed to target minors in its advertising overseas(this was the thing that began smoking declines in the US when it got banned)...horrible i know, but im an investor....so with a 65% payout ratio for pm and altria's is 85% so im sure they'll move towards those levels in the future, the boost this september will be key, if its over 10%+ will be a telling sign
PM has a 3.75% yield thats doubled in the last 5 years, some of my spin off shares at $40 are yield 10% today
MO has a 4.92% yield that grows annually
Mcdonalds yield is 3.16% and growing
Chevron is 3.35% and growing
Shell is over 5% yield
Visa has the lowest yield @ .75% but its grown its dividend by 50% each of the last 2 years which to me is the biggest metric i follow, along with the fact that it has an 80% operating margin so i feel 10-20 years from now the dividend is gonna be massive on visa
but yes, that's why i dont index, indexing is safer, but realistically phillip morris,altria,mcdonalds,chevron,Visa is safe enough
PM is the one along with visa i see with the biggest growth in the dividend moving forward, PM bc their payout ratio is low today, combined with growing world population, and the sad fact PM is allowed to target minors in its advertising overseas(this was the thing that began smoking declines in the US when it got banned)...horrible i know, but im an investor....so with a 65% payout ratio for pm and altria's is 85% so im sure they'll move towards those levels in the future, the boost this september will be key, if its over 10%+ will be a telling sign
This post was edited on 6/5/13 at 4:40 pm
Posted on 6/5/13 at 4:49 pm to ThaBigFella
How do you like CAT? I'm thinking of buying them in the near future - seems undervalued, solid company, good dividend - they seem to be under the radar.
Posted on 6/5/13 at 4:54 pm to Ace Midnight
Their dividend history is stellar, lots of growth, low p/e, seems like a slam dunk. I don't own it, but Im trying to retire within the next decade with a certain level of annual dividend income so it never really fit into my plans....if you're young and have time wait for that dividend to grow, do it man.
LINK
If you noticed all my holdings not named visa are over 3% and all but coke and mcdonalds are over 3.75%, many closer to 5%. Im not old, but im almost 35. I was saving up on a 85k/yr job up until a year ago when i inherited these convenience stores from an uncle so its possible to save up and retire without a high wage, believe me i was on that path, now im lucky i can save a lot more, but my goals are unchanged.....early retirement....buy dividend stocks, reinvest dividends, dont worry abt price you buy at(as long as its no astronomically high). I look at it as buying an income producing rental property in a way
Im right now at about $55k in annual dividend income and all that comes from savings from my mediocre sub $90K/yr job and saving/investing from 16-34. It's not in a roth or ira bc i always wanted to retire early so i never planned on leaving it in a vehicle i couldn't touch till im an old man. I never wanted to be rich, I just tried to build an income stream that would allow me to quit my job and live life.
Some of the projections I've seen like fastgraphs(i pay $9.99/month for, so worth it ) have PM dividend at $8.91 in 2023, if that happens i will 1) poop my pants 2) have a fan freaking tastic retirement, thats why its my numero uno
This is one of my favorite pieces ive read, if more young people were intelligent enough to understand and execute I'd feel america was on the path to a recovery, our youths are morons for the most part nowadays
How to Build a $250,000 portfolio of coke stock by age 35
LINK
If you noticed all my holdings not named visa are over 3% and all but coke and mcdonalds are over 3.75%, many closer to 5%. Im not old, but im almost 35. I was saving up on a 85k/yr job up until a year ago when i inherited these convenience stores from an uncle so its possible to save up and retire without a high wage, believe me i was on that path, now im lucky i can save a lot more, but my goals are unchanged.....early retirement....buy dividend stocks, reinvest dividends, dont worry abt price you buy at(as long as its no astronomically high). I look at it as buying an income producing rental property in a way
Im right now at about $55k in annual dividend income and all that comes from savings from my mediocre sub $90K/yr job and saving/investing from 16-34. It's not in a roth or ira bc i always wanted to retire early so i never planned on leaving it in a vehicle i couldn't touch till im an old man. I never wanted to be rich, I just tried to build an income stream that would allow me to quit my job and live life.
Some of the projections I've seen like fastgraphs(i pay $9.99/month for, so worth it ) have PM dividend at $8.91 in 2023, if that happens i will 1) poop my pants 2) have a fan freaking tastic retirement, thats why its my numero uno
This is one of my favorite pieces ive read, if more young people were intelligent enough to understand and execute I'd feel america was on the path to a recovery, our youths are morons for the most part nowadays
How to Build a $250,000 portfolio of coke stock by age 35
This post was edited on 6/5/13 at 5:13 pm
Posted on 6/5/13 at 5:01 pm to Ace Midnight
quote:
How do you like CAT?
Been in it a while. I'm not liking it too much since February. It's dropped about 15% from those highs but is now trading where it was before the crash of 2008. Big industry cyclical betting on large scale infrastructure recovery. I'm staying with it but I wouldn't say it is under the radar.
Posted on 6/5/13 at 5:12 pm to ThaBigFella
What's your best margin product? Fountain drinks?
Posted on 6/5/13 at 5:15 pm to wegotdatwood
it all depends on location. Fountain drinks are great but technically something like ATMS and air machines are better.
I have 4 ATM machines that are basically loaded every day with cash from the register and return $2.75 net on a $2500/machine. Air machines are even less money and turn $1 profit on every use so their profit margin is higher haha. Margins are low in the grocery business, if you break it down after bills and employees most make like $30-40/hr given a 24 hr workday
I have 2 garages at 2 of the stores, those bring in the most I'd say its definitely not selling 1,000,000 gallons of gas a month at .08 margins not counting credit card fees
Individual cigars are great too....not to be racist but damn black people love that stuff. I sell at one store close to 300 individual cigars a day for $1, they don't like buying the pack for $3 so they pony up $1 at a time...smart...but im not complaining...they love their weed and typically pay cash so i dont get hit with more cc fees
I have 4 ATM machines that are basically loaded every day with cash from the register and return $2.75 net on a $2500/machine. Air machines are even less money and turn $1 profit on every use so their profit margin is higher haha. Margins are low in the grocery business, if you break it down after bills and employees most make like $30-40/hr given a 24 hr workday
I have 2 garages at 2 of the stores, those bring in the most I'd say its definitely not selling 1,000,000 gallons of gas a month at .08 margins not counting credit card fees
Individual cigars are great too....not to be racist but damn black people love that stuff. I sell at one store close to 300 individual cigars a day for $1, they don't like buying the pack for $3 so they pony up $1 at a time...smart...but im not complaining...they love their weed and typically pay cash so i dont get hit with more cc fees
This post was edited on 6/5/13 at 5:23 pm
Posted on 6/6/13 at 8:56 am to ThaBigFella
I was wondering how you would rate in order the stocks you mentioned if you were to start investing today. Have stocks like McDonalds and Chevron hit a point where most of the gains have already occurred? Ive got some stocks like clorox, exxon, home depot, pepsi, but most of my investments are in popular mutual funds.
Posted on 6/6/13 at 9:22 am to Jake88
If you mean by future growth?
Id say
Visa(20% of the world uses CC's and inflation means MONEY)
PM(growing smokers all over the world)
MCD(expanding like crazy in china)
CVX
MO
Thats how Id rate my top 5 in terms of growth, look if you're young and have time on your side, I feel visa is going be an unreal story one day but the dividend is .75% but its growing at an insane pace, just read this morning US payments are up 12%.......who the hell uses cash anymore? Also as your bills go up every year visa makes slightly more money....
if you'd rather a huge dividend and accumulation of more share, PM without a debt best dividend stock, buy it, hold it for life, thank me in 25 years
both PM and V should dominate the next 25+ years easily I dont see anything that could disrupt them, they're both market leaders in must have items, buy PM today under $90 thats an insane deal, V has had a crazy run up this year from $111 to $180 now but as someone who holds forever, I dont care I'd buy more today but in terms of whats run up more this year.....PM is less than it was last summer bc its a defensive stock.....so id buy that today over V but V is still cheap at $180 but its had awesome run up already.
The problem with Visa is you wont add new shares with DRIP and if there is a big correction Visa will get hit like all others and lets say you put $10,000 in your dividend will be $19/quarter hardly gonna buy you anything when it corrects......$10,000 in PM will buy you 1 new share a quarter
on the plus side Visa's dividend has grown from .44/yr to $1.32 a year in just the last 2 years, that is unreal growth and like i said, go read their balance sheet....80% margins...that dividend will grow and grow for a looooooong time
Id say
Visa(20% of the world uses CC's and inflation means MONEY)
PM(growing smokers all over the world)
MCD(expanding like crazy in china)
CVX
MO
Thats how Id rate my top 5 in terms of growth, look if you're young and have time on your side, I feel visa is going be an unreal story one day but the dividend is .75% but its growing at an insane pace, just read this morning US payments are up 12%.......who the hell uses cash anymore? Also as your bills go up every year visa makes slightly more money....
if you'd rather a huge dividend and accumulation of more share, PM without a debt best dividend stock, buy it, hold it for life, thank me in 25 years
both PM and V should dominate the next 25+ years easily I dont see anything that could disrupt them, they're both market leaders in must have items, buy PM today under $90 thats an insane deal, V has had a crazy run up this year from $111 to $180 now but as someone who holds forever, I dont care I'd buy more today but in terms of whats run up more this year.....PM is less than it was last summer bc its a defensive stock.....so id buy that today over V but V is still cheap at $180 but its had awesome run up already.
The problem with Visa is you wont add new shares with DRIP and if there is a big correction Visa will get hit like all others and lets say you put $10,000 in your dividend will be $19/quarter hardly gonna buy you anything when it corrects......$10,000 in PM will buy you 1 new share a quarter
on the plus side Visa's dividend has grown from .44/yr to $1.32 a year in just the last 2 years, that is unreal growth and like i said, go read their balance sheet....80% margins...that dividend will grow and grow for a looooooong time
This post was edited on 6/6/13 at 9:35 am
Posted on 6/6/13 at 12:40 pm to ThaBigFella
So my wife's 3000$ Roth with her putting in 50$ a month won't get her anywhere with Visa will it She a stay at home mom fwiw
Posted on 6/6/13 at 12:49 pm to windshieldman
haha i mean listen this is my favorite calculator its a backtest calculator where you can backtest some stocks you love with dividends reinvested
LINK
If you put $3000 in coke 40 years ago and invested $50/month you'd have $1,200,000 today so i wouldnt say your wifes investment would be nothing, but it definitely wouldn't compound quickly with such a low dividend.....but i dont think you can invest $50 in visa unless its a direct purchase plan which i dont know if they have
Best of luck.....Id put that money in something you know is gonna be here in 40 years and go with that....i like phillip morris, but coke,pepsi,general mills,exxon,chevron all should suffice and make you very happy
LINK
If you put $3000 in coke 40 years ago and invested $50/month you'd have $1,200,000 today so i wouldnt say your wifes investment would be nothing, but it definitely wouldn't compound quickly with such a low dividend.....but i dont think you can invest $50 in visa unless its a direct purchase plan which i dont know if they have
Best of luck.....Id put that money in something you know is gonna be here in 40 years and go with that....i like phillip morris, but coke,pepsi,general mills,exxon,chevron all should suffice and make you very happy
Back to top
Follow TigerDroppings for LSU Football News