02-05-2015, 09:53 AM
Great post hendi! Personally, I hold a good deal of low cost mutual funds in my 401k. I also look at real estate investments. I am a bit inexperienced in options, so I have yet to utilize them.
As far as DGI, I think we could see oil stay low for a year or two. I don't agree with everyone overloading on energy stocks so quickly. I think some of the bigger energy stocks, such as XOM, have further to fall.
I also wince whenever I see someone loading up on a stock with a really high payout ratio. I have to be very comfortable with a company to invest in one with a ratio over 70%. I also strongly consider what their forward looking earnings to dividend ratio looks like. Going back to oil for a moment, some of these energy companies could easily have payout ratios of 90%, 100%, or more if oil stays low for even just a year.
As far as DGI, I think we could see oil stay low for a year or two. I don't agree with everyone overloading on energy stocks so quickly. I think some of the bigger energy stocks, such as XOM, have further to fall.
I also wince whenever I see someone loading up on a stock with a really high payout ratio. I have to be very comfortable with a company to invest in one with a ratio over 70%. I also strongly consider what their forward looking earnings to dividend ratio looks like. Going back to oil for a moment, some of these energy companies could easily have payout ratios of 90%, 100%, or more if oil stays low for even just a year.