Posts: 1,002
Threads: 89
Joined: Dec 2013
Reputation:
32
(10-06-2014, 09:38 AM)Lewys120 Wrote: As a guide how much should I be investing into each?
Atleast a £500 stake?
Rusty on my GBP/USD exhange rates. With your brokerage, I'd look for a position size where the commission is less than 2.5% of the trade one way for long-term holdings (meaning many years) and <1% for speculation/frequent trades in and out.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
Posts: 241
Threads: 38
Joined: Oct 2014
Reputation:
2
£500 is 2.3%
What is the danger with losing stake to commission if I treat it as a one of charge and forget it?
I'm not THAT bothered about what my account shows (Currently -£80 out of 2.5k investment) as long as dividends are growing and stock numbers are growing as a result of reinvestment.
Maybe you could educate a young investor like me 
Thanks
Posts: 2,411
Threads: 54
Joined: Jul 2013
Reputation:
34
Kraft is a fine choice as well, no problems with that as a 30 year investment.
Posts: 241
Threads: 38
Joined: Oct 2014
Reputation:
2
Just out of curiosity.
What do you think of AFLAC, I bought it over KRFT (Because it was at a buy oppertunity) a few days ago.
Posts: 2,411
Threads: 54
Joined: Jul 2013
Reputation:
34
(10-06-2014, 10:38 AM)Lewys120 Wrote: Just out of curiosity.
What do you think of AFLAC, I bought it over KRFT (Because it was at a buy oppertunity) a few days ago.
I'm in the minority, but I think its dead money for the next couple of years due to the majority of their earnings being from Japan. My thoughts are that a saturated market, poor demographics and a weak and continuing to get weaker yen will stunt earnings and dividend growth. At a 2.5% yield I wasn't willing to stick around.
I sold a couple weeks ago with a 20% gain and went with a faster grower, Ameriprise Financial (AMP).
Posts: 241
Threads: 38
Joined: Oct 2014
Reputation:
2
Far enough
My reason for buying is that I believe it's oversold,
In terms of saturation this is definetly the case in japan but I believe this will push them to expend at home.
It's a risk but at 9 p/e could be very rewarding.
Posts: 270
Threads: 50
Joined: Mar 2013
Reputation:
6
(10-06-2014, 11:50 AM)Lewys120 Wrote: It's a risk but at 9 p/e could be very rewarding.
That's the key right there with AFL. Great business, well run, etc. They are pretty tight with the dividend increases, even though the payout ratio is very low. But otherwise looks like a great company on most metrics. The currency risk and exposure to national debt make people wary, though, and so it has been sitting at this very low multiple ever since the big recession.
If the p/e ever expands again, even part way back to the company's long-term norms, you'd see a nice profit.
But if your main goal is a dividend that grows nicely, the company has been extremely conservative, which may be frustrating.
Posts: 241
Threads: 38
Joined: Oct 2014
Reputation:
2
10-07-2014, 03:56 AM
(This post was last modified: 10-07-2014, 03:56 AM by DividendDragon.)
Definetly agree there.
My plan now is to invest in higher yiled growth stocks.
I'm very tempted by Microsoft and KRAFT.
I'm wary of XON because I already own GAZP[/b]
(10-06-2014, 01:17 PM)TomK Wrote: (10-06-2014, 11:50 AM)Lewys120 Wrote: It's a risk but at 9 p/e could be very rewarding.
That's the key right there with AFL. Great business, well run, etc. They are pretty tight with the dividend increases, even though the payout ratio is very low. But otherwise looks like a great company on most metrics. The currency risk and exposure to national debt make people wary, though, and so it has been sitting at this very low multiple ever since the big recession.
If the p/e ever expands again, even part way back to the company's long-term norms, you'd see a nice profit.
But if your main goal is a dividend that grows nicely, the company has been extremely conservative, which may be frustrating.
Definetly agree there.
My plan now is to invest in higher yiled growth stocks.
I'm very tempted by Microsoft and KRAFT.
I'm wary of XON because I already own GAZP
(10-06-2014, 01:17 PM)TomK Wrote: (10-06-2014, 11:50 AM)Lewys120 Wrote: It's a risk but at 9 p/e could be very rewarding.
That's the key right there with AFL. Great business, well run, etc. They are pretty tight with the dividend increases, even though the payout ratio is very low. But otherwise looks like a great company on most metrics. The currency risk and exposure to national debt make people wary, though, and so it has been sitting at this very low multiple ever since the big recession.
If the p/e ever expands again, even part way back to the company's long-term norms, you'd see a nice profit.
But if your main goal is a dividend that grows nicely, the company has been extremely conservative, which may be frustrating.
[b]
Posts: 62
Threads: 15
Joined: Oct 2014
Reputation:
0
I would stick to what Dividend Watcher said. Make sure you aim for low risk for a core holding. I am looking to buy Exxon Mobil right now. I did research for an article I recently wrote, and with its current yield and a 10% dividend growth rate (I believe it has a 10.3% growth rate over the last 5 years), a $10,000 investment today can net you over $530,000 in a 40 year period. I know that's a bit more than what you were planning to put it, but it still shows the power of compounding dividend growth, and it's not like you only get to make one single purchase.
Focus on the core holdings. Get your hands on low risk companies with a long track record of dividend growth. I would have recommended KO and CL if their P/E ratios weren't so high, but aim for companies like that. After you have a portfolio full of safe core holdings, you can branch out a bit.
Posts: 241
Threads: 38
Joined: Oct 2014
Reputation:
2
Iv'e decided on MCD as it nears $92 a share and seems a good buy oppertunity.
Going to buy tomorrow so someone please warn me if I'm about to do something dramatically wrong!
Thanks
Lewys
Posts: 1,002
Threads: 89
Joined: Dec 2013
Reputation:
32
10-07-2014, 06:37 PM
(This post was last modified: 10-07-2014, 06:41 PM by Dividend Watcher.)
(10-07-2014, 06:17 PM)Lewys120 Wrote: Going to buy tomorrow so someone please warn me if I'm about to do something dramatically wrong!
Nope, just be prepared for a couple years of who-knows-what performance. They're going to work through the US/Canada/GB sales slump eventually. In the meantime, just collect the dividends either by reinvesting or adding to your cash and add another holding.
Just curious ... what made you decide on MCD?
I made my first purchase of MCD at about the same price 3 years ago. In the meantime, I've added 10% to my shares just from dividend reinvestment and my quarterly dividend check is up 50% over that time period. I'm lovin' it.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
Posts: 241
Threads: 38
Joined: Oct 2014
Reputation:
2
I feel that the P/e is cheap and that the company is just 1 innovation away from another sales boom.
They have enough cash to keep increasing Div even if sales slump for a few years, im patient, I can wait.
If they can work through the super size me fiasco then this should prove no problem.
I also own no food stocks and $92 for the largest fast food retailer? Make mine a large!
An unloved stock that I'm lovin!
|
