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.
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.
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... [Reply]
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. [Reply]
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 [Reply]
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).
Originally Posted by lewdog:
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.
theres going to be a lot of degens in trouble soon. so many people have aped into a lot of really stupid positions lately with the ai craze.
imo the macro outlook for me personally is still bearish till 2024. im going to watch this circus with popcorn in hand till then. [Reply]
Originally Posted by 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.
That guy in the video needs beat in the face with a ball bat. I couldn't even dissect what he was saying. Some people think they just know more than everyone else and he's the president of that club.
EDIT: I looked him up. he's with PWL Capital , a Canadian based financial management group.
Originally Posted by Hog's Gone Fishin:
That guy in the video needs beat in the face with a ball bat. I couldn't even dissect what he was saying. Some people think they just know more than everyone else and he's the president of that club.
EDIT: I looked him up. he's with PWL Capital , a Canadian based financial management group.
Says it all, Canadians are ignorant!
His portfolios average 3%-5% per year. LOL
My TSLY made that YESTERDAY!
LOL. Yeah. He’s an analyst. He’s always going to look at the return and risk structure. But the reality is you’ve bought an instrument that’s priced on the market and it isn’t necessarily logical. [Reply]
