Stock Market looking at a dark day

I own stock, do you? Nevertheless, I turn Bloomberg Business on every day to see what the markets are doing and why they're doing what they're doing. Do you?

 

I do, a lot of stock. Studied it for years before investing real money. It's flowing well into my coffers. Stop watching Bloomberg and study stocks. Do your homework. Do technicals.

 

I don't have the luxury of being able to put any money in stocks. I'm on a limited income and barely managing to pay the co-pay on my Multaq. But, I'm always interested in how the market reacts and what it reacts to.

 

I started off doing $50/month and investing in utilities. Over the long haul they move slowly but are almost guaranteed to make money. Then I expanded to stocks that pay hefty dividends and used that money to reinvest. Even if you have no $$$ now, practice investing with "play" money. That's how I learned. Some of the best lessons I learned were in practice. Like anything else.

 

I'd rather play poker, thanks for the suggestion though.

 

Good luck with that. lol

 

Dividends are worked into the listed price. When dividends are paid out, the share price drops by equivalent amount and just before paying out, those shares rise by the equivalent amount - there is no such thing as free money hence no such thing as "hefty dividends". Dividends are an indication of past performance, share speculation is a calculated gamble on future performance. Dividends are often a good strategy for a low stable return as long as you don't regularly sale otherwise your income from dividends will be eaten up by trading costs

 

If you're the average investor you're probably not buying the DJIA... At least, not directly.

 

Sure there is, especially when you take it into context. The difference between .09% and 10.07% is quite hefty. At the end of a year, the amount of money paid on those dividends adds up. It's quite hefty.

You are wrong about dividends. It should be something every investor leverages throughout their lives and in decent amounts throughout their portfolios.

 

Which companies state that they will pay 10.07% of the share price as a dividend?

 

It's called Forward Dividend & Yield. It's not that uncommon. I have some paying 13.08% >. You can read up on it here:

https://www.dividendinvestor.com/dividend-yield/

 

LOL Your link just gave support to my postings! Quote "the average dividend yield of all the companies in the U.S. market was approximately 2%, as of January 2017".
ie not significantly different to bank interest rates

And I asked "Which companies state that they will pay 10.07% of the share price as a dividend?" which you have failed to answer. ie give me one example of a stock that announced a 10.07% dividend payout one year in advance (I will accept a dividend announcement of 5%) with the guarantee that it's share price won't drop (rhetorical question). Hint: You will find that many of the higher dividend paying companies such as Capital Finance Corp saw their share price drop significantly when announcements that future dividends will be cut, and are small companies vulnerable to becoming insolvent

Read this to understand where your strategy fails:
https://www.investopedia.com/articles/investing/082015/3-biggest-misconceptions-dividend-stocks.asp

 

Strategy fails? I make a live off the dividends I get from the stocks (some of them) I own! LOL

 

You still haven't answered the one question I asked

 

No thanks, you can do your own research. I have spent years researching and collaborating with others on this.

From your own link:

For example, if a company pays a Q1 dividend of 25 cents, and you assume the company's dividend will be consistent, the firm will be expected to pay $1.00 in dividends over the course of the year. If the stock price is $10, the forward dividend yield is 10%.

lol

 

You should read what you copy and paste!

For example, if a company pays a Q1 dividend of 25 cents, and you assume the company's dividend will be consistent, the firm will be expected to pay $1.00 in dividends over the course of the year. If the stock price is $10, the forward dividend yieldis 10%.

lol. It's funny that you think that an explanation of how to work out simple percentages is based on factual data

You clearly are a novice. The share price in the example I gave in my post, Capital Finance Corp, crashed when they announced that the expected dividend was going to be cut.

It's telling that you still refuse to answer my question

 

Strikes me as contrived.

 

Forward dividend yield is 10%.

Exactly what I have been saying all along. Somehow you have wrapped your head around something that I said, you linked and claim it isn't true. I even linked it. Forward yield dividends can exceed 10% and they can pay out at higher rates. What is so hard about that? And you call me a novice.... lol

I am an amateur in the stock and financial trade as I don't do it professionally. However, I have surrounded Myself with like minded individuals (Who also love Golf, tennis and drinking great Scotch!) who are amateurs as well. My total for the last 2 years is averaging 14.6% on investments. It's a living wage. I am happy and it exceeded the professional services I used to use. Investments are for the long haul not just dividends and quick hits.

Your Capital Finance Corp isn't really relevant as you buy stocks like that for the long term, not for the short. Sure, they bled down at one point but everyone took a hit when the economy turned and stocks crashed, it's all part of money management and growing wealth. But I guess you never really got that. Or you are just here to grind teeth and flap your gums just for the sake of it. That's probably it.

 

LOL Which stock were they referring to in the example they used to describe simple percentages?

It's telling that you still refuse to answer my question. Let's make it easy for you as clearly you're making things up and the hole you dug yourself into is getting deeper. Explain why these companies would pay 10% when banks pay practically zero and why would they give you "free money"?

Capitala Finance Corp is currently paying over 10% dividend. Its share price crashed every time they announced that the dividend was going to drop. Do you have some sort of crystal ball that enables you to sell just before these sort of companies announce a drop in dividend payment.

And what total are you referring to in your statement about "averaging 14.6%"?

 

You changed stocks from Capital (COF) to Capitila (CPTA), big difference.

The funny part is, you just proved me correct, yet again. lol

So in closing, there are stocks out there that pay hefty dividends, even exceeding 10%.

Well done, you literally just shot down your own plane.

 

The share price dropped greater than the dividend payout!

And you still refuse to answer the question.......

 

That and cash for clunkers.

 

Invest in a good 401k plan. Mine has gone up almost $50k in the last 7 months.

 

You changed stocks and proved me correct. You answered it yourself. Why are you even here commenting?? lol

 

You could by stock in that???
Damn, I missed the boat on that one!