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The world of dividends

Posted on 5/25/16 at 10:30 am
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
40084 posts
Posted on 5/25/16 at 10:30 am
Hello MTB, I have a question for the gurus here on dividends. This comes as I just recently signed up for my companies stock sharing program where right now our dividend payout is a meager 30 cents. Outside of my 401k, I have never really paid much attention to this as much but now that I have read a tad about dividends my question is this:

If I had some capital laying around, what would be the ideal company to look for in order to establish a decent dividend return on my money? I would want to start small so may a company with a lower share price would be ideal.

Any help would be great!
Posted by jeepfreak
Back in the BR
Member since Oct 2003
19433 posts
Posted on 5/25/16 at 10:34 am to
GE, currently trading around $30/share. Pays divi's religiously.
Posted by PlanoPrivateer
Frisco, TX
Member since Jan 2004
2792 posts
Posted on 5/25/16 at 11:25 am to
I like AT&T. Steadily increased dividend. Currently yields almost 5%.
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
40084 posts
Posted on 5/25/16 at 11:32 am to
I have read articles on both of those companies and I am definitely intrigued by GE, apparently I was not aware of them selling (or in transaction to sell) GE Capital. That may drive more dividend yield post transaction.

My mind has been literally blown today by the world of dividends and now my brain is working overtime to figure out a good entry plan.
Posted by Grits N Shrimp
Kansas City, MO
Member since Dec 2014
646 posts
Posted on 5/25/16 at 11:42 am to
These are helpful sites that I have used to learn about the world of dividend growth investing:

LINK

LINK

LINK

LINK

Posted by HYDRebs
Houston
Member since Sep 2014
1241 posts
Posted on 5/25/16 at 11:48 am to
quote:

I like AT&T. Steadily increased dividend. Currently yields almost 5%.


great stock to start out in dividends with a high yield.

Dividend stocks currently in my portfolio
-KO
-MSFT
-PG
-T
-CSCO
-F
-AAPL
-JNJ


I want to grow to a number of 15-20 to become diverse, currently looking for the right financial div. stock and somewhere in the energy sector.

In my opinion Ford is a great cheap Div. yield stock right now and it is trading in the $13-14 dollar range.
Posted by Brightside View
Best Spot Topside God's Green Earth
Member since Mar 2007
118 posts
Posted on 5/25/16 at 12:00 pm to
Take a look at FGP. Currently at $20 with a 10% dividend.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 5/25/16 at 12:05 pm to
Why not buy an ETF that pays a good dividend and get a little diversification?
Posted by abitabrewed4LSU
Houston, TX
Member since Feb 2009
1078 posts
Posted on 5/25/16 at 12:09 pm to
quote:

In my opinion Ford is a great cheap Div. yield stock right now and it is trading in the $13-14 dollar range.



Cheap doesn't always mean good value.
Posted by baytiger
Boston
Member since Dec 2007
46978 posts
Posted on 5/25/16 at 12:12 pm to
O pays monthly dividends and just had a bit of a pullback. Might be a decent time to get in
Posted by white perch
the bright, happy side of hell
Member since Apr 2012
7130 posts
Posted on 5/25/16 at 12:13 pm to
RDS.B
Posted by baldona
Florida
Member since Feb 2016
20443 posts
Posted on 5/25/16 at 12:14 pm to
quote:

Why not buy an ETF that pays a good dividend and get a little diversification?


This. If you are literally just learning about them, you are nuts to not by a dividend mutual fund or ETF. Between 5-10% of my domestic large cap retirement funds are in SCHD.
Posted by Omada
Member since Jun 2015
695 posts
Posted on 5/25/16 at 12:15 pm to
That's an MLP, so those are actually distributions, which are taxed as income for the holder. They also come with extra tax documents. Not an advised hold for IRA's or other untaxed accounts.

On top of that, FGP isn't profitable right now, so expect the distributions to dry up sooner or later if things don't change. CINR is a better choice, I think, for an MLP.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 5/25/16 at 12:17 pm to
Ah yes, k-1s that don't come out until June. CPAs love those.
Posted by Brightside View
Best Spot Topside God's Green Earth
Member since Mar 2007
118 posts
Posted on 5/25/16 at 12:41 pm to
I've had FGP in 3 different accounts, including my IRA, for the past 3 years. Absolutely no problems with paying the dividend quarterly. Also on its way up again which makes for a nice gain on top of the dividend.

Im sure you can find something negative about every stock.
Posted by 50_Tiger
Dallas TX
Member since Jan 2016
40084 posts
Posted on 5/25/16 at 12:58 pm to
Next question would be is it possible to derive a yearly income of a decent portfolio of dividend stocks? My ambition is to possibly have a decent cash flow from dividend stocks.
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12576 posts
Posted on 5/25/16 at 1:14 pm to
EPD Raised dividend for 30+ consecutive quarters
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 5/25/16 at 1:16 pm to
quote:

GE, currently trading around $30/share. Pays divi's religiously.
They almost lost their religion in 2009 when they cut their dividend by almost 70%.
Posted by baldona
Florida
Member since Feb 2016
20443 posts
Posted on 5/25/16 at 1:47 pm to
If you could make reliably good money on just dividends, there would be a lot less need for bonds. Dividends can be good, but rarely the only answer.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72618 posts
Posted on 5/25/16 at 2:05 pm to
quote:

you are nuts to not by a dividend mutual fund or ETF.


Every Mutual Fund and ETF in my retirement accounts pays dividends. Goes nicely with stock paying dividends in my brokerage account.
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