Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[DaFace]

Originally Posted by Buehler445

That's....weird.

I understand there is some risk in running a tab especially if you give them your card (no clue if that's still a thing. Been a minute since I've been in the bar scene).

But as a dude who's had to reconcile credit card statements to classify purchases, these folks are DEFINITELY not even looking at their statement if they're swiping it 6 times at a bar. Yikes.

It's been a long time since I've looked at credit card retailer fees, but if there is a transaction fee plus the percentage fee, that's probably eating up your buddy. That would suck.

It seems a little weird for us, but in a lot of foreign countries (where tipping is less common and tap to pay is the norm), it's pretty standard. You just get your drink, tap the terminal, and go about your night. Bartenders don't have to deal with tabs at all that way, and if you decide to leave after a drink, you just walk out.

Of course, one key is you have to have the agreements with the credit card companies to only charge a % fee rather than a transaction charge to make that work. I'm not sure how common the different arrangements are here.

[DaFace]

As for the question of the legality passing on CC fees, there's a super weird nuance to it. You can't "add fees" for credit cards in all states (though you can in most these days), but you can offer a "cash discount" (which obviously amounts to the same thing). Regardless of how you do it, it's largely just a question of how many CC users you want to piss off in exchange for overcoming the fees.

[KCUnited]

Originally Posted by Buehler445

That's....weird.

I understand there is some risk in running a tab especially if you give them your card (no clue if that's still a thing. Been a minute since I've been in the bar scene).

But as a dude who's had to reconcile credit card statements to classify purchases, these folks are DEFINITELY not even looking at their statement if they're swiping it 6 times at a bar. Yikes.

It's been a long time since I've looked at credit card retailer fees, but if there is a transaction fee plus the percentage fee, that's probably eating up your buddy. That would suck.

I think its mostly a flexibility option and possibly a portion/cost control mechanism (or maybe thats just me haha). "I've already tabbed out, I should just go" kind of thing

I know I've been annoyed before waiting to get someone's attention just to tab out so I understand just closing out while you have them there, especially if you're uncertain about your plans

[Buehler445]

All that is fair.

I think about going to the ATM and getting and maintaining cash, I dunno. The convenience isn't without value.

I really don't know how this is going to play out.

[Buehler445]

One thing I know for sure, I trust the auto-pay and transaction security more with the credit cards than trusting Walmart. If they'd incentivize it I might take a look at it but all things being equal, I'm rolling with the company whose core competency is transactions as opposed to squeezing vendors..

[GloryDayz]

Originally Posted by DaFace

It seems a little weird for us, but in a lot of foreign countries (where tipping is less common and tap to pay is the norm), it's pretty standard. You just get your drink, tap the terminal, and go about your night. Bartenders don't have to deal with tabs at all that way, and if you decide to leave after a drink, you just walk out.

Of course, one key is you have to have the agreements with the credit card companies to only charge a % fee rather than a transaction charge to make that work. I'm not sure how common the different arrangements are here.

I spent the last two weeks in Egypt and that's how it worked. And there's nothing cooler than $1.62 for an Uber - it was amazing..

[Stewie]

In Kansas CC companies are allowed to charge for transactions. I've noticed it more in small stores that charge for transactions less than $10.

I use the hell out of credit cards for cash back. Right now Discover gives 5% back for Walmart and all grocery stores. That really adds up. That deal started July 1 and ends on September 30. The new deal is 5% cash back for Amazon and Target.

[lewdog]

Originally Posted by Hog's Gone Fishin

OK guys, I've been playing with these High Yield dividend funds for almost two years now. The hit on dividend stocks is that the dividend payout depresses the share price .

I've got two that seem to be solid, the share price is stable. If you want a savings account that pays 40% here you go.

AMZY began trading 7/24/23 at $20/ share . Current share price is 19.35, so it's been trading well over a year while paying out a MONTHLY dividend at a 41% rate. AMZN is the underlying so if you believe in Amazon there's no reason to worry. Here's the dividend history:

https://www.yieldmaxetfs.com/our-etfs/amzy/


YMAG,started trading 1/29/24 so we have 9 months data . It also began at $20 and is currently trading at 19.16 and is paying dividends at a rate of 45% and starting two weeks ago changed from a monthly dividend toa WEEKLY dividend. The underlying stocks are the MAG 7 group so if you believe in the MAG 7 there you go. Here's the dividend history:

https://www.yieldmaxetfs.com/ymag/

Not financial advise , do your own research. I'm just sharing as a CP friend. And yes I have these in my daughters retirement account who by the way just began her teaching career . Really proud of her.

Wrong. Annual rate is 41.44%, not monthly. 3.27% monthly. It's in your link.

Want to know what owning AMZN stock returned you in the past year? 46.86%.

This AMZY dividend minus the share price loss was 41.44% - 2.56% (share price loss) for total return of 38.88%

https://www.yieldmaxetfs.com/our-etfs/amzy/

Total return are all that matters when you are young and focusing on dividends for a young investor like your daughter is NOT the recipe for success. She needs growth and she should focus on total return.

[lewdog]

Originally Posted by Hog's Gone Fishin

It doesn’t pay 41% per month, your post made it sound like that. You agree?

[philfree]

For a dividend stock Blue Owl Cap Corp (OBDC) is a good one.

[lewdog]

Originally Posted by Hog's Gone Fishin

NO, Only a Moran would think that! The link was attached anyway . And my daughter uses her AMZY dividends to buy AMZN as well as more AMZY.

If you don't have the dividend income you have to rely on a paycheck from a JOB to buy stock.

Ok, thank you for qualifying.

PS I still love you even though we will never agree about dividends.

[UteChief]

Originally Posted by lewdog

Ok, thank you for qualifying.

PS I still love you even though we will never agree about dividends.

Do you have an issue with dividend stocks in general or just investments like AMZY?

[Buehler445]

Interestingly, my 3M stock purchase worked out. I'm currently up 53% and have booked 2 quarterly dividends. That's probably the best I've ever done on an individual stock purchase. Obviously my long term index holds are up more than that over time, but I'm pretty happy with the stock pick.

Now I need to figure out if I should sell it or turn DRIP on and let it go. If I can get things wound down in the next couple weeks, I'll look into the company a little more.

Full disclosure, my pussy ass only bought 2 shares, but I'm still marking it down as a win.

[DaFace]

Originally Posted by UteChief

Do you have an issue with dividend stocks in general or just investments like AMZY?

You didn't ask me, but my issue is the 100% focus on the dividends and the complete ignoring of the stock price drops. Y'all should see the one HF deleted...

[UteChief]

Originally Posted by DaFace

You didn't ask me, but my issue is the 100% focus on the dividends and the complete ignoring of the stock price drops. Y'all should see the one HF deleted...

Initially I was looking at dividends to build a nice income portfolio. Then I realized I’d rather have growth and pay capital gains tax instead of income tax.