huge dividend blue chips

Discussion in 'Stocks' started by ptrjon, May 19, 2010.

  1. #11     May 19, 2010
  2. In terms of trust, for long term investments I like to invest in companies where insiders own a large% of stock outstanding AND they do not issue themselves stock options or increase the share count every year. I like to see a stable number of shares outstanding. The best companies to invest in you find and think, "why the heck did they ever go public? I would love to own this entire business".

    Throw in measures of growth, free cash flow, price to sales,and similar and you can find some "value" stocks with long term, owner oriented management. If you can get it at a reasonable price, then in terms of serious investing, the company will be working for you on your side, no longer a blind speculation.

    These are not the flashy stocks you here about on CNBC. These are the dull businesses, usually Conservative Christian management, that can make great long term investments because they believe in stewardship and not short-term profiteering and slickster maneuvering. With all the pc bs about nepotism etc, I h love to see multiple generations working in a company as active managers. A company with that going on to me is more likely to take a real long term view.

    The last thing you want with long term investments is "slickster" mgt that is always issuing stock, huge options packages, and all that trash. That worked in bubbles but it is at times like this that the parasites are exposed and their companies go down the toilet.
     
    #12     May 19, 2010
  3. drcha

    drcha

    Over a 10 year period, I would think that the dividend growth is more important than the yield. Personally, I would prefer to own stocks that have consistently grown their dividend for the past 10 years than stocks that have a large dividend. Especially when you consider the inflation that is probably coming.
     
    #13     May 20, 2010
  4. I agree. I just bought the higher dividends in the tax account and probably will buy more dividend growers in my personal account. With Obama tax you want to have more capital gains then interest income.
     
    #14     May 20, 2010
  5. if your intention is to just buy and hold dividend paying stocks for the income you would be better off just set up a naked put selling program on the same stocks and double your yield.
     
    #15     May 20, 2010
  6. ptrjon

    ptrjon

    just shorted January GE 17.50 puts :)

    Breakeven price: $14.50
     
    #16     May 20, 2010
  7. sell puts you can make 10% a year or buy dividend stocks on the cheap. only downside is you dont get the upside of stocks.
     
    #17     May 20, 2010
  8. I agree. Sell puts on good dividend yielders. The only downside is that it ties up your capital and/or margin.
     
    #18     May 20, 2010
  9. I don't think you can do it in a retirement account....but in a regular account it can make sense.
     
    #19     May 20, 2010
  10. you can at ib.
     
    #20     May 20, 2010