09-07-2018, 09:31 AM (This post was last modified: 09-07-2018, 10:00 AM by fenders53.)
(09-07-2018, 08:55 AM)EricL Wrote: My parents recently rolled over a 401k and were looking for income ideas.
Here is a list of dividend stocks I put together for them for a shopping list:
Sounds like they are in the same current situation, and you and I seem to think alike based on your list. I want to own some of those companies soon. Market is heading down slowly and good for nibbling. I can't sit on my hands forever. This is fun and like my wife shopping at the mall until I run out of money to invest.
Today's moves so far...
I have always desired to own MMM but never pulled the trigger due to PE. It was a lost opportunity for a stable stock in retrospect. Just sold an OCT 19th 210 put today while it is trading around 212 today. Maybe l will own 100 shares soon, and if not there is $410 sitting in my account that is mine. I am very comfortable with this decision longterm. I'll probably continue to sell puts until the market turns against me and I am "forced" to own MMM on my terms.
SO ran away from me yesterday. I have little confidence in share price appreciation so I hope it pulls back and I will grab that awesome dividend. I love 4.5% dividends but SO competes with XEL for my utility money. XEL dividend is rarely at 4% but without looking up the stats I think I can safely say XEL price appreciation exceeds SO by 3X and that includes some hard times. I prefer some diversity rather than go all in on XEL for my total utility investments. XEL is high now so I wait for a good decision. SO is clearly being daytraded by speculators now. Random utility companies with no big news do not swing 2%+ per day when the sector is otherwise somewhat stable. Tempted to place my buy orders at my price and go just fishing lol.
I continue to watch T like a hawk. Let it have another bad week and I will sell a put quick and get in where I want.
That is probably very good advice. I won't be pleased if it slips away. A partial position now could be added too later if it does drop another dollar or so as I expect it may.
I missed T several times with limit day orders. I was trying to buy it under $32. I'll blame my brokerage companies for taking a month to transfer my accounts. We'll see if I get another chance or not. It is especially volatile around option expiration which is pretty much every Friday.
09-13-2018, 09:47 AM (This post was last modified: 09-13-2018, 09:48 AM by fenders53.)
I am going to add a modest position in F Ford today. I am certain it's going to be a bumpy ride and not for the faint of heart, but I think the free fall is close to over barring market calamity. I have followed them forever. It's almost certainly a yield trap right now as the DIV is likely to be slashed some next year, but should still remain above average. For those that aren't aware, F pays large special and unexpected dividends when times are good. Insiders paying themselves back for holding? I don't know of course but it happened more than once. Anyway, I don't recommend F to others now but they haven't failed me yet if I buy when the factory is on fire. They had the good sense to self correct prior to the automaker bailout 10 years ago. I don't see F going away. An American icon company. I truly hope the GOV doesn't have to help the industry again but I'm confident they will if necessary.
Not a fan at all of Ford as a stock. It's had flat earnings for 20 years, and no growth prospects in sight. It also has several dividend cuts in its history, making the 7.8% yield pretty questionable. If the company is struggling this much to grow in a good economy, what do you think will happen when we hit the next recession?
09-13-2018, 12:15 PM (This post was last modified: 09-13-2018, 12:20 PM by fenders53.)
F is speculative for sure. Any automaker is currently risky. GM is sucking wind too. The whole industry is so cyclical and you have to be a fool to not trim positions during good times. TESLA trades at about $300. Do they even have a PE? Ford made more actual profit selling the Model A 90 years ago. I'm just playing Eric. I'll share my F basis and we'll talk about this in two years. F dividend will almost surely be cut in 2019. I'll probably chicken out and just sell puts now to lower my basis even further. I keep my speculative plays at less than 3% total portfolio. As I said I am NOT suggesting anyone follow in my path. But I will be sure to brag if it works out. Fair enough?
(09-13-2018, 12:15 PM)fenders53 Wrote: F is speculative for sure. Any automaker is currently risky. GM is sucking wind too. The whole industry is so cyclical and you have to be a fool to not trim positions during good times. TESLA trades at about $300. Do they even have a PE? Ford made more actual profit selling the Model A 90 years ago. I'm just playing Eric. I'll share my F basis and we'll talk about this in two years. F dividend will almost surely be cut in 2019. I'll probably chicken out and just sell puts now to lower my basis even further. I keep my speculative plays at less than 3% total portfolio. As I said I am NOT suggesting anyone follow in my path. But I will be sure to brag if it works out. Fair enough?
Not going to fault anyone for making a spec play or two. Best of luck with the buy, we'll check back in on this in 2020!