What I Am Buying Today.

[fenders53]

Sold a TROW strike 135 FEB put. Might be in the club soon.

[Mr1share]

Bought a bunch of 2024 calls cheap. Figured its going to take at least 2 years for some of this stuff to come back

Also bought short term puts.

Market about to go read again. Will be down 500 by close

I'm not buying any more stocks until this nonsense stops. Playing options for rest of 2021

[kered]

All the talk about TROW yesterday had me doing research this morning. opened a position in it today.

[fenders53]

(01-28-2022, 02:20 PM)Mr1share Wrote: Bought a bunch of 2024 calls cheap. Figured its going to take at least 2 years for some of this stuff to come back

Also bought short term puts.

Market about to go read again. Will be down 500 by close

I'm not buying any more stocks until this nonsense stops. Playing options for rest of 2021

Be really careful with that.  You buy stuff way out of the money? Buying options can work if you can get somewhere close to timing the bottom.  I have found that a difficult feat.  

You got time with the 2024s.  Way better than short term option buys if you want to gamble. If you get a good month soon you can adjust them if you care to. I never buy puts. The short term theta decay destroyed them every time I tried. They were mostly index puts though.

[ChadR]

Initial position into TROW.

[fenders53]

Now that we have a forum TROW club, please share any info you run across. The only reason I can find for the dip is a reduction in assets undermanagement. They are paid fees on that number. Let's pretend nobody panic sells their 401K but the market dips 15% and stays there awhile. Now they are collecting fees on 15% less AUM. That makes sense, and the market actually should discount it, but the freefall in price does seem way overdone.

[rnsmth]

Not today, but Monday and Wednesday

I have some accumulated dividends, which means it is investment time

On Monday, unless something convinces me otherwise, I will be adding to SCHD and STOR.

Monday and Tuesday I get more dividends - my Canadian company dividend, TD, will hit the account tomorrow after the close. Tuesday morning PTY and VZ will hit the account so I will probably do one or more add-on buys then.

And the painted ponies they go up and down (Joni Mitchell)

And dividend/distribution income will hit another all time high at least twice next week.

Yes, I am an unapologetic dividend growth investor.

[Kerim]

(01-29-2022, 11:26 AM)fenders53 Wrote: Now that we have a forum TROW club, please share any info you run across.  The only reason I can find for the dip is a reduction in assets undermanagement.  They are paid fees on that number.  Let's pretend nobody panic sells their 401K but the market dips 15% and stays there awhile.  Now they are collecting fees on 15% less AUM.   That makes sense, and the market actually should discount it, but the freefall in price does seem way overdone.

TROW is super interesting to me -- by the numbers is it a great buy at these prices. But it does seem to fall in that bucket of perpetually low p/e stocks (along with things like AFL and BEN). One of the best ways to succeed with DG investing is to buy low p/e dividend growers, and then enjoy the increasing dividend stream, while you quietly get rich off the p/e expansion.

But some stocks never get the p/e expansion. I've been waiting on AFL since 2012. Happy to keep holding it; I think it is among the safest in my stable. But I don't think the market is going to wake up to its charms and bid it up to a p/e of 20. I think TROW might be this as well. A safe and reliable performer, but you're not getting some fantastic bargain that will mean-revert or p/e expand in the foreseeable future. (Though I'd be happy to be wrong!)

All that to say that I'm happy to add this one on the dips, but I doubt it will ever be a major pillar of my portfolio. Maybe Fenders has it right -- maybe these are ideal candidates for cash-secured puts?

[fenders53]

(01-30-2022, 11:01 AM)rnsmth Wrote: Not today, but Monday and Wednesday

I have some accumulated dividends, which means it is investment time

On Monday, unless something convinces me otherwise, I will be adding to SCHD and STOR.

Monday and Tuesday I get more dividends - my Canadian company dividend, TD, will hit the account tomorrow after the close. Tuesday morning PTY and VZ will hit the account so I will probably do one or more add-on buys then.

And the painted ponies they go up and down (Joni Mitchell)

And dividend/distribution income will hit another all time high at least twice next week.

Yes, I am an unapologetic dividend growth investor.

SCHD isn't going anywhere fast.  Let your hair down and find a market deal.    SCHD isn't a terrible place to park dividends in case better deals are coming soon.

[rnsmth]

(01-30-2022, 12:07 PM)fenders53 Wrote: SCHD isn't going anywhere fast.  Let your hair down and find a market deal.    SCHD isn't a terrible place to park dividends in case better deals are coming soon.

SCHD is part of a plan to make the portfolio easier for my wife to manage in the likely case that I die before she does.

With a record of a decade of double digit year over year dividend increases, it is the royalty of dividend growth ETFs.

If by going nowhere fast you are referring to share price appreciation, I suggest you look at a look at a 10 year chart, but share price appreciation is not really the goal with making it 5.5% of our portfolios at this time.

At the age of 70, there are some new things that enter into portfolio planning.

[fenders53]

(01-30-2022, 12:15 PM)rnsmth Wrote:

(01-30-2022, 12:07 PM)fenders53 Wrote: SCHD isn't going anywhere fast.  Let your hair down and find a market deal.    SCHD isn't a terrible place to park dividends in case better deals are coming soon.

SCHD is part of a plan to make the portfolio easier for my wife to manage in the likely case that I die before she does.

With a record of a decade of double digit year over year dividend increases, it is the royalty of dividend growth ETFs.

If by going nowhere fast you are referring to share price appreciation, I suggest you look at a look at a 10 year chart, but share price appreciation is not really the goal with making it 5.5% of our portfolios at this time.

Yeah I am just saying it is going to hang around here for awhile IMO.  The flight to value already happened.  We'll see if I am right.  SCHD had a good run in the bull market and no reason to think it won't do above average if market gets rougher.  I have considered buying.  I need to run a total return backrest vs SPY for the past 5 years.

[rnsmth]

(01-30-2022, 12:28 PM)fenders53 Wrote:

(01-30-2022, 12:15 PM)rnsmth Wrote:

(01-30-2022, 12:07 PM)fenders53 Wrote: SCHD isn't going anywhere fast.  Let your hair down and find a market deal.    SCHD isn't a terrible place to park dividends in case better deals are coming soon.

SCHD is part of a plan to make the portfolio easier for my wife to manage in the likely case that I die before she does.

With a record of a decade of double digit year over year dividend increases, it is the royalty of dividend growth ETFs.

If by going nowhere fast you are referring to share price appreciation, I suggest you look at a look at a 10 year chart, but share price appreciation is not really the goal with making it 5.5% of our portfolios at this time.

Yeah I am just saying it is going to hang around here for awhile IMO.  The flight to value already happened.  We'll see if I am right.  SCHD had a good run in the bull market and no reason to think it won't do above average if market gets rougher.  I have considered buying.  I need to run a total return backrest vs SPY for the past 5 years.

As you do that, keep in mind that the SPY dividend yield is 1.3% while SCHD's is about 2.9%.