Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[tredadda]

Originally Posted by Hog's Gone Fishin

I've been following this guy on youtube that has the dividend thingy figured out. He's making 120K a year just on divi's. I posted one of his videos a few posts back.

Here he is:

Gonna check him out. We tend to invest in a lot of dividend stocks so any tips he has would be nice.

[lewdog]

Originally Posted by ThaVirus

Lol I stumbled upon the dividends subreddit recently and those ****ers’ entire portfolios are dividends.

I won’t lie, they make it sound amazing when they get to the point where they’re making $2, $3, $4k per month in dividends.

How much capital do they have invested to get those dividends?

[ThaVirus]

Originally Posted by lewdog

How much capital do they have invested to get those dividends?

Oh, it’s a ****ton.

I’m not saying it’s smart or a sound strategy- just that I’d love for my investments to make me $6k per month lol

[jjchieffan]

Originally Posted by tredadda

Gonna check him out. We tend to invest in a lot of dividend stocks so any tips he has would be nice.

I'm going to have to check this out. I'm hoping to build up my retirement fund to a point that it will produce a nice monthly income without touching the principal balance. Dividends would do that.

[Hog's Gone Fishin]

Originally Posted by tredadda

Gonna check him out. We tend to invest in a lot of dividend stocks so any tips he has would be nice.

This guy has big balls and invests margin money. He figures why not borrow at 5% and get 30-50% returns. He was at 360 K just 4 weeks ago and now has over 400K. and has it set through reinvestment of the dividends he'll have his margin acct paid off in three years and have a 700K account.

[lewdog]

Originally Posted by jjchieffan

I'm going to have to check this out. I'm hoping to build up my retirement fund to a point that it will produce a nice monthly income without touching the principal balance. Dividends would do that.

Things to keep in mind.

1. 1. There is absolutely no legal obligation for any company to pay any dividends to its share holders. Stop buying penny stocks, thinking they'll never cut their dividend.

2.Percentage of dividend paid by any company is, in no way, any indication of the quality of the company. Just from dividend yield we cant say whether a company is good or bad.

3. Dividends are basically the part of profit or "cash in hand" which a company shares with its shareholders. Dividends come off the share price.

4. One of the best known company "Berkshire Hathway" owned by Warren Buffet, one of the richest men on Earth, has to date paid dividend only once in almost 50 yrs. Still it has given great returns to its share holders without a dividend!

5. The stock price of the company giving dividend gets reduced by exactly the same dividend amount on the record date ie the date when the dividend is actually provided. Hence, it does not have any material impact on your overall finance due to dividends. You can absolutely lose money on a dividend stock that's share price sinks.




MOST IMPORTANT FOR ALL TO READ

If you are an aged person or need more a pension kind if income, high dividend yielding stocks can work for you, while if you are young who want to grow your capital, so buy high growth low dividend stocks.

Lastly, a company which does not provide any dividend to shareholders but keeps investing in its products and factories leading to expansion and higher profit is far better than companies which are just doling out dividends but are not growing enough. But best are the companies which are growing quite fast and still paying out reasonable amount of dividends. Overall annual returns MUST be calculated to determine if a dividend paying stock is worth your purchase, you must not solely focus on the % dividend amount.

[lewdog]

Originally Posted by Hog's Gone Fishin

This guy has big balls and invests margin money. He figures why not borrow at 5% and get 30-50% returns. He was at 360 K just 4 weeks ago and now has over 400K. and has it set through reinvestment of the dividends he'll have his margin acct paid off in three years and have a 700K account.

I'm no genious but I hope you see the faulty math and tremendous risk in this. We've seen stocks run the past few weeks and that's likely adding to his math. See the market go red and there's no way his plan will hold.

[Buehler445]

Originally Posted by lewdog

YOU THINK I GIVE A **** ABOUT A DIVIDEND?!?!? WHERE THE **** HAVE YOU BEEN?!?!?!

Honestly, I prefer companies without a dividend. That means they will instead put money back into the business.

Maybe I'm not sold on DIS though but the forecast stuff I see kind of shows it being pretty beaten down. Some of the other tech and growth stocks seem a bit inflated with this recent run-up, and I have positions in others like PYPL, SQ, AMZN, GOOGL and BROS. I keep my individual stock long term positions to 10 or less stocks.

It’s fine dude. Just make sure DRIP is on. Cool out yo. **** SPY has a dividend. Do you hate it too?

You’d prefer companies that don’t have a dividend, but do you prefer companies that shitcanned their dividend? Cash flow does not necessarily always go to either dividend or expansion/development. It can also be used for stock buyback, which is awesome for you, and to cover losses, service variable rate debt which is not awesome for you.

I’m not trying to talk you out of it necessarily. I think it’s probably a hood but I see a lot of red flags that make me uncomfortable without some additional research that I’m not willing to do at the moment.

Originally Posted by ThaVirus

Lol I stumbled upon the dividends subreddit recently and those ****ers’ entire portfolios are dividends.

I won’t lie, they make it sound amazing when they get to the point where they’re making $2, $3, $4k per month in dividends.

Right? I threw a few buck at some dividend funds and stocks in a brokerage just to piddle, and I thought it was a decent hedge in the downturn.

Originally Posted by jjchieffan

I'm going to have to check this out. I'm hoping to build up my retirement fund to a point that it will produce a nice monthly income without touching the principal balance. Dividends would do that.

I don’t think you’ve ever told me how old you are, but the most likely best program is to put a wide swath into a growth ETF and roll some into bonds, fixed income instruments and dividend funds as you get closer.

Or you could be a lazy **** like me. My self directed funds are target date funds that will do that for me.

[lewdog]

NASDAQ UP 29% year to date. Sucks for those who think they can time the market, are sure we're heading for a recession, are sure the bear market will go deeper, hate the current president, would prefer to sit in cash and wait for the blood bath......etc.

Dollar cost averaging makes the most millionaires.

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

Peter Lynch

[Buehler445]

Originally Posted by lewdog

Things to keep in mind.

1. 1. There is absolutely no legal obligation for any company to pay any dividends to its share holders. Stop buying penny stocks, thinking they'll never cut their dividend.

2.Percentage of dividend paid by any company is, in no way, any indication of the quality of the company. Just from dividend yield we cant say whether a company is good or bad.

3. Dividends are basically the part of profit or "cash in hand" which a company shares with its shareholders. Dividends come off the share price.

4. One of the best known company "Berkshire Hathway" owned by Warren Buffet, one of the richest men on Earth, has to date paid dividend only once in almost 50 yrs. Still it has given great returns to its share holders without a dividend!

5. The stock price of the company giving dividend gets reduced by exactly the same dividend amount on the record date ie the date when the dividend is actually provided. Hence, it does not have any material impact on your overall finance due to dividends. You can absolutely lose money on a dividend stock that's share price sinks.




MOST IMPORTANT FOR ALL TO READ

If you are an aged person or need more a pension kind if income, high dividend yielding stocks can work for you, while if you are young who want to grow your capital, so buy high growth low dividend stocks.

Lastly, a company which does not provide any dividend to shareholders but keeps investing in its products and factories leading to expansion and higher profit is far better than companies which are just doling out dividends but are not growing enough. But best are the companies which are growing quite fast and still paying out reasonable amount of dividends. Overall annual returns MUST be calculated to determine if a dividend paying stock is worth your purchase, you must not solely focus on the % dividend amount.

Hey Lew, this will piss you off....

I bought a couple shares of SPYI. It's an income fund that sells options on their holdings for cash flow. I didn't feel comfortable with the Tesla or ARK funds. Apple was intriguing, but the SPY looks better to me.

Interestingly, it doesn't ONLY sell covered calls. It does call spreads, which probably nukes a lot of the return, but it's supposed to participate in some of the upward movement if there is any. I'm guessing the price will go nowhere, and the only return will be dividends.

Interesting read...
https://seekingalpha.com/article/460...ng-income-play

I'm guessing the price will go nowhere, and the only return will be dividends, like JEPI.

Whatever, bought a couple shares to keep an eye on it.

[myselff77]

After opening a Roth in 2021, it has finally turned green this week.
My two biggest mistakes:
1. Betting on the bottom of Peloton after it sank quite a bit only to have it sink way more. Never averaged down, but finally gave up and sold the position awhile back.
2. Holding ARK.G. I'm fascinated by the gene editing companies like CRSP though I am not knowledgeable enough to really know the industry. I figured ARK.G would give me exposure and manage it better than I could. I keep averaging down on this one figuring it will eventually turn around.

The turnaround has been on solid companies that have now recovered for which I continued to buy over time and picking a few others that followed Minervini's VCP pattern and selling into gains to protect the earnings (thanks Lewdog for suggesting his book). Hopefully the positive trend can continue from here on out...

[Hog's Gone Fishin]

I'm getting ready to go ALL IN on TSLY / NVDY

If the Dividend holds I'll double my money every 15 to 16 months

If it doesnt, it will take 24 months.

I just moved 10K over waiting for it to settle and am strongly considering selling one rental to throw all in.

That's how damn serious I am.

[Rain Man]

Originally Posted by myselff77

After opening a Roth in 2021, it has finally turned green this week.
My two biggest mistakes:
1. Betting on the bottom of Peloton after it sank quite a bit only to have it sink way more. Never averaged down, but finally gave up and sold the position awhile back.
2. Holding ARK.G. I'm fascinated by the gene editing companies like CRSP though I am not knowledgeable enough to really know the industry. I figured ARK.G would give me exposure and manage it better than I could. I keep averaging down on this one figuring it will eventually turn around.

The turnaround has been on solid companies that have now recovered for which I continued to buy over time and picking a few others that followed Minervini's VCP pattern and selling into gains to protect the earnings (thanks Lewdog for suggesting his book). Hopefully the positive trend can continue from here on out...

I finally gave up on the strategy of buying companies when their stock goes down. It's a very logical strategy that has never seemed to work for me. I've changed my strategy to buying companies that are up for the year on days when they're down. We'll see if that works.

Originally Posted by Hog's Gone Fishin

I'm getting ready to go ALL IN on TSLY / NVDY

If the Dividend holds I'll double my money every 15 to 16 months

If it doesnt, it will take 24 months.

I just moved 10K over waiting for it to settle and am strongly considering selling one rental to throw all in.

That's how damn serious I am.

Good luck to you. I don't really understand what they're doing, so I'll keep my distance. But I hope you get rich.

On the topic of getting rich, I have a ton of NVDA and AMD. Times are good for me right now. I need to sell a little just to lock in some profit and rebalance, but it's just sooooo good right now.

[Hog's Gone Fishin]

Originally Posted by Rain Man

I finally gave up on the strategy of buying companies when their stock goes down. It's a very logical strategy that has never seemed to work for me. I've changed my strategy to buying companies that are up for the year on days when they're down. We'll see if that works.



Good luck to you. I don't really understand what they're doing, so I'll keep my distance. But I hope you get rich.

On the topic of getting rich, I have a ton of NVDA and AMD. Times are good for me right now. I need to sell a little just to lock in some profit and rebalance, but it's just sooooo good right now.

Well, I went in with 10K premarket this morning. (TSLY) Up $392 today on share price alone. Should bring in a $473 dividend on 7/15 if it holds at .80/share

Also added some TSLL which is 1.5X leveraged TSLA

[Buehler445]

Here is an interesting video on covered call funds. I think they are a little overly harsh. I think they have a little more value in an income focused portfolio.

Interestingly, the 2 funds you listed appear to have mirrored the upswing of Tesla. That would run counter to what the video proports. But both things could be true, however. These funds could be getting buying volume of dudes wanting to own Tesla (at $18 rather 270) and it may be a bump in fund price because they're 1. New and 2. Investors don't understand them. OR, the video is wrong. It'll be interesting to see how those fair over the long term. I'm watching SPYI. They run covered call spreads that should participate some upside (probably while losing some income potential).

Interesting stuff Hog. Thanks for sharing.