(02-12-2019, 05:42 PM)stockguru Wrote: All these oil stocks currently pay over a 3% yield. I did some calculations. To me OIL stocks represent the best values in the market. Below is with only 15k invested.

Symbol        div           shares bought (50)              Dividend payout per year
RDS            .94           50 shares cost $3150        ($188 in dividend payout per year)
TOT            .72           50 shares cost $2700        ($144 in dividend payout per year)
OXY            .78           50 shares cost $3200        ($156 in dividend payout per year)
XOM            .82          50 shares cost $3700        ($164 in dividend payout per year)
CNQ           .335          50 shares cost $1300        ($67 in dividend payout per year)
SU -            .36           50 shares cost $1600         ($72 in dividend payout per year)

Total dividends from about 6 stocks per year $791

$15,650 cost for all 6 stocks to buy at 50 shares each (in 20 years of dividends will make up costs of stocks) $15,820 in dividends if you hold for 20 years. This does not include dividend raises.

(02-14-2019, 06:24 PM)DividendDragon Wrote:

(02-12-2019, 05:42 PM)stockguru Wrote: All these oil stocks currently pay over a 3% yield. I did some calculations. To me OIL stocks represent the best values in the market. Below is with only 15k invested.

Symbol        div           shares bought (50)              Dividend payout per year
RDS            .94           50 shares cost $3150        ($188 in dividend payout per year)
TOT            .72           50 shares cost $2700        ($144 in dividend payout per year)
OXY            .78           50 shares cost $3200        ($156 in dividend payout per year)
XOM            .82          50 shares cost $3700        ($164 in dividend payout per year)
CNQ           .335          50 shares cost $1300        ($67 in dividend payout per year)
SU -            .36           50 shares cost $1600         ($72 in dividend payout per year)

Total dividends from about 6 stocks per year $791

$15,650 cost for all 6 stocks to buy at 50 shares each (in 20 years of dividends will make up costs of stocks) $15,820 in dividends if you hold for 20 years. This does not include dividend raises.

Only if you ignore the time value of money.
You need to be able to bank on inflation matching raises

fenders53 Wrote:Thanks. I looked at SIX sometime back but missed the bad earnings report today. Still looks like an opportunity. I took a little different approach but it is my version of going long. Sold a June 52.50 put so I may be in for 100 shares if it is below that in June. Got paid $3.40/SH for the risk today. Just a bit over one full year of dividends received now. I like the risk/reward on this one.

(02-15-2019, 07:47 AM)crimsonghost747 Wrote:

fenders53 Wrote:Thanks. I looked at SIX sometime back but missed the bad earnings report today.  Still looks like an opportunity.  I took a little different approach but it is my version of going long.  Sold a June 52.50 put so I may be in for 100 shares if it is below that in June.  Got paid $3.40/SH for the risk today.  Just a bit over one full year of dividends received now.  I like the risk/reward on this one.

While in general I'm not a big fan of selling options far out in time, this one does look quite interesting. 
If you don't get assigned it almost 20% annualized, definitely a nice income.  (if my math is correct)

If you do get assigned then it gets a bit more complicated but we won't know until June. :p

(02-15-2019, 10:11 AM)Otter Wrote: Added to BUD and T this morning.

(02-15-2019, 10:37 AM)NilesMike Wrote: Don't like BUD at all, their business trajectory is down. STZ is a much better buy IMO. Since BUD sold Corona/Modello to STZ it has gone from $105ish to 70ish , while STZ has gone from $80ish to 180ish

(02-15-2019, 10:11 AM)Otter Wrote: Added to BUD and T this morning.

(02-15-2019, 09:51 AM)divmenow Wrote: Bought some FDX this morning. First time buying this name!

(02-15-2019, 10:56 AM)Otter Wrote:

(02-15-2019, 10:37 AM)NilesMike Wrote: Don't like BUD at all, their business trajectory is down. STZ is a much better buy IMO. Since BUD sold Corona/Modello to STZ it has gone from $105ish to 70ish , while STZ has gone from $80ish to 180ish

(02-15-2019, 10:11 AM)Otter Wrote: Added to BUD and T this morning.

Both appear roughly fairly valued to me. BUD is trading right at its historical average P/E, with a yield (even after the divvy cut and foreign tax) about 50 basis points higher than STZ (although STZ's recent history of raises is impressive). I also view BUD as a bet on Dollar vs. emerging market currencies reverting back to the historical mean at some point in the near future. Although it pains me to invest in them as a homebrewer, BUD is one of the 800lb gorillas in the beer space, and I think they will continue to execute well in that challenging space long-term. 

STZ is trading a bit under its 10-year average P/E of 21, but in the same ballpark as BUD. I think the current discount for STZ is the market trying to digest the impact of them making a huge bet on cannabis by spending $4B (a sizable percentage of their market cap) for Canopy. I don't know that you will see the same meteoric divvy growth going forward for STZ, at least for the next couple years. 

Frankly, I like both. I have had STZ on my watch-list for a while. Would also love to own BF.B if it ever drops to a P/E in the low 20s (one can hope). Selling booze is profitable.

(02-15-2019, 07:47 AM)crimsonghost747 Wrote:

fenders53 Wrote:Thanks. I looked at SIX sometime back but missed the bad earnings report today.  Still looks like an opportunity.  I took a little different approach but it is my version of going long.  Sold a June 52.50 put so I may be in for 100 shares if it is below that in June.  Got paid $3.40/SH for the risk today.  Just a bit over one full year of dividends received now.  I like the risk/reward on this one.

While in general I'm not a big fan of selling options far out in time, this one does look quite interesting. 
If you don't get assigned it almost 20% annualized, definitely a nice income.  (if my math is correct)

If you do get assigned then it gets a bit more complicated but we won't know until June. :p