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+--- Thread: New to DGF (/showthread.php?tid=1169)
RE: New to DGF - ChadR - 05-11-2015
The beauty of DGI is that you can ignore the G/L column. Not one of those 3 companies cut their dividends so who cares what Mr. Market says that they are worth at this moment. Also if the stock goes down a lot without a change in their fundamentals, you now have a great buying opportunity.
RE: New to DGF - stewardinlife - 05-11-2015
(05-11-2015, 04:38 PM)ChadR Wrote: The beauty of DGI is that you can ignore the G/L column. Not one of those 3 companies cut their dividends so who cares what Mr. Market says that they are worth at this moment. Also if the stock goes down a lot without a change in their fundamentals, you now have a great buying opportunity.
Great. Thanks Chad.
RE: New to DGF - earthtodan - 05-11-2015
The gain/loss includes the commissions you spent on the transactions. So if the price is at your cost basis but you spent $9.99, you'll show a starting loss of $9.99.
RE: New to DGF - Dividend Watcher - 05-12-2015
(05-11-2015, 04:38 PM)ChadR Wrote: The beauty of DGI is that you can ignore the G/L column. Not one of those 3 companies cut their dividends so who cares what Mr. Market says that they are worth at this moment. Also if the stock goes down a lot without a change in their fundamentals, you now have a great buying opportunity.
Agreed. You got very solid companies there and at reasonable cost bases. Don't be nervous when you see the red in the G/L column -- especially for these companies. I like to use that to see if I want to add more. If the loss gets greater than 10%, perhaps you'd want to add another small chunk.
Great start.
RE: New to DGF - crimsonghost747 - 05-12-2015
Good start. I'm eyeing JNJ myself and will probably make a purchase during this week.
RE: New to DGF - stewardinlife - 05-12-2015
Have a question on ROE (return on Equity). As I am educating I am finding one of the healthy criteria in selecting a company is an ROE of 15% or greater. The PM stock seems to be having ROE of -64.67% -- This seems to be way under the desired value.
RE: New to DGF - Kerim - 05-18-2015
(05-12-2015, 08:43 AM)Dividend Watcher Wrote: Don't be nervous when you see the red in the G/L column -- especially for these companies. I like to use that to see if I want to add more. If the loss gets greater than 10%, perhaps you'd want to add another small chunk.
Perfect answer, DW!
It is not at all unusual for recent buys to dip into the red. That only reflects the fact that short-term price fluctuations are normal and impossible to predict. If you've chosen great companies (like the ones you have), over the years the price will increase as earnings per share and dividends slowly climb. That is the hope, anyway. But as others have said, better to keep your attention on the income stream that you have purchased.
But just like DW says, when one of my favorites is in the red like that, my first thought is "time to consider buying more!". If I liked XOM enough at $92 to buy it then, I should love it at $87.
RE: New to DGF - stewardinlife - 05-18-2015
(05-18-2015, 09:03 AM)Kerim Wrote:(05-12-2015, 08:43 AM)Dividend Watcher Wrote: Don't be nervous when you see the red in the G/L column -- especially for these companies. I like to use that to see if I want to add more. If the loss gets greater than 10%, perhaps you'd want to add another small chunk.
Perfect answer, DW!
It is not at all unusual for recent buys to dip into the red. That only reflects the fact that short-term price fluctuations are normal and impossible to predict. If you've chosen great companies (like the ones you have), over the years the price will increase as earnings per share and dividends slowly climb. That is the hope, anyway. But as others have said, better to keep your attention on the income stream that you have purchased.
But just like DW says, when one of my favorites is in the red like that, my first thought is "time to consider buying more!". If I liked XOM enough at $92 to buy it then, I should love it at $87.
Thanks Kerim.
Guys,
Also have a question!
As of now I have JNJ, KO and PM for my initial 3K.
Started to do the monthly 1k, and ready to acquire fairly priced decent stocks. I am thinking of WMT, O, OHI, UNP.
Any thoughts or feedback?
Thanks.
Paul
RE: New to DGF - EricL - 05-18-2015
I would rank them in order of current attractiveness as UNP, OHI, O then WMT.
UNP is trading at fair value for the first time in about a year and a half and OHI is nice with a 6% yield.
I like O as well, but its still a bit expensive in my own opinion.
I sold WMT last fall due to the declining growth rate and relatively weak dividend yield. Just not enough growth there for my tastes.
Long UNP, O, OHI.
RE: New to DGF - stewardinlife - 05-18-2015
(05-18-2015, 01:19 PM)EricL Wrote: I would rank them in order of current attractiveness as UNP, OHI, O then WMT.
UNP is trading at fair value for the first time in about a year and a half and OHI is nice with a 6% yield.
I like O as well, but its still a bit expensive in my own opinion.
I sold WMT last fall due to the declining growth rate and relatively weak dividend yield. Just not enough growth there for my tastes.
Long UNP, O, OHI.
Thanks!
RE: New to DGF - earthtodan - 05-19-2015
(05-18-2015, 01:19 PM)EricL Wrote: I would rank them in order of current attractiveness as UNP, OHI, O then WMT.
Agreed, in fact I've been fattening up my UNP position quite a bit here.
RE: New to DGF - Dividend Watcher - 05-19-2015
(05-12-2015, 05:10 PM)stewardinlife Wrote: Have a question on ROE (return on Equity). As I am educating I am finding one of the healthy criteria in selecting a company is an ROE of 15% or greater. The PM stock seems to be having ROE of -64.67% -- This seems to be way under the desired value.
SIL, I posted a new thread here addressing your question. I hope it helps! Any questions, ask away there.