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My investment strategies have included value investing and buy 'n hold.



With value investing, I've looked for opportunities to buy good companies when they were cheap. Oil companies are presently examples of that.


I usually buy 'n hold stocks and never sell them. Unfortunately, company CEOs seem to think they should treated their companies like disposable tissues, selling them out and reorganizing them for what usually seems like trivial reasons.

One buy 'n hold strategy I've used is to buy good companies with periodic investments in more stock, usually using DRIPS and also reinvesting dividends.*

That's often worked fine for me, but you can still have the problem of CEO selling you out and subjecting you to floods of unwanted cash and taxes.


That happened to me yesterday, when I opened a letter from Computershare or whatever and a check for $304,000 for my Piedmont Natural Gas Company stock fell out.

Piedmont was a nice small gas utility that I've been buying with their DRIP since 1998. Now I have all this cash and nothing to do with it!

Worse yet, Bayer is buying up Monsanto, another DRIP of mine. When that deal goes through, I'll get another $250,000 cash or so.


At age 66, I no longer have the 30-40 year planning horizon for investments I've been comfortable using in the past.

I suppose some more energy stock purchases are in order, but I guess I'm looking for some new stocks to buy with DRIPS, too.


* Unfortunately, buy 'n hold can have it's problems, too. Most famously for me was that my overly heavy ownership of Washington Mutual bank stock evaporated to zero during the last financial panic. That DID smart!



Seattle Pioneer
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IF you have not considered it, one of my fav long term holds and one I do not expect to be going anywhere anytime soon, is WTR(Aqua America) yeah it is a little pricey right now, but all Div stocks are.

It has always made me crazy when my DRIPS break up, that has been a bigger pain in the butt than the sales as fa as I am concerned, and I expect we will be seeing quite a bit of that going forward.
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Piedmont was a nice small gas utility that I've been buying with their DRIP since 1998. Now I have all this cash and nothing to do with it!

Worse yet, Bayer is buying up Monsanto, another DRIP of mine. When that deal goes through, I'll get another $250,000 cash or so.

I suppose some more energy stock purchases are in order, but I guess I'm looking for some new stocks to buy with DRIPS, too.


SP, why DRIP when you can go with the flow?

You'll be hard pressed to DRIP all that moola into stocks a bit at a time. Why not just invest in some dividend paying stocks and reinvest the dividends? Here's a list, there are other lists but I've found they all basically all cover the same stocks.

The following dividend stocks are a very select group, as they have been increasing their annual dividends every year for at least the past 25 years.

http://www.dividend.com/dividend-stocks/25-year-dividend-inc...
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... one of my fav long term holds and one I do not expect to be going anywhere anytime soon, is WTR(Aqua America) ...

Yes, WTR was one of the first stocks I ever bought;-)

https://www.google.com/?gws_rd=ssl#q=WTR+stock+price

And with a Div yield of 2.59% it's outpacing inflation.
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<<Recommendations: 1
IF you have not considered it, one of my fav long term holds and one I do not expect to be going anywhere anytime soon, is WTR(Aqua America)>>


Heh, heh! I have a psychological barrier to buying water utilities:


The monsoons have arrived here and it's been raining for a week or more except for yesterday (a window I used to wash clothes in rainwater and then dry them on the clothesline).


The idea of selling something that is coming down like manna from heaven seems unlikely to me!


Seattle Pioneer
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<<SP, why DRIP when you can go with the flow?

You'll be hard pressed to DRIP all that moola into stocks a bit at a time. Why not just invest in some dividend paying stocks and reinvest the dividends? Here's a list, there are other lists but I've found they all basically all cover the same stocks.
>>


When I started buying stocks circa 1980, interest rate were at an all time high, which meant that stock prices were cheap.


Now interest rates are very cheap which means stocks, dividend paying stocks in particular, are correspondingly expensive.

The Fed is hot to raise interest rates which means that stock prices will probably be under pressure for years, perhaps decades to come.


So I need a good reason to put cash into stocks. The only bargains I see are energy stocks, although other beaten down resource stocks could be considered.


Seattle Pioneer
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The idea of selling something that is coming down like manna from heaven seems unlikely to me!

_________________

LOL

It's not the size, it's what you do with it!
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The Fed is hot to raise interest rates which means that stock prices will probably be under pressure for years, perhaps decades to come.

People have been predicting the Fed's actions for decades. Most of the time they are wrong.

So I need a good reason to put cash into stocks. The only bargains I see are energy stocks, although other beaten down resource stocks could be considered.

While you're sitting on that pile of cash dividend paying stocks are paying dividends.

IF the Feds raise interest rates you can always sell some or all of the dividend payers and buy whatever.

A dividend in the hand is worth two possible interest rate hikes in the future.

http://www.dividend.com/dividend-stocks/25-year-dividend-inc...

Desert Dave
Long
T (AT&T) Div yield 4.97%

CVX Div yield 4.20%
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<<While you're sitting on that pile of cash dividend paying stocks are paying dividends.

IF the Feds raise interest rates you can always sell some or all of the dividend payers and buy whatever.
>>


This is like Teddy Kennedy who said that the Fed raising interest rates didn't matter since businesses could always raise prices.

When the Fed raised interest rates to 21% or so circa 1981 or so, lots of leveraged businesses were wounded or went bust because they couldn't raise prices, and indeed had to CUT prices to sell their stuff.

Kennedy was a fool for that remark.

And interest rates have a major impact on stock prices in a variety of ways.

We've been living in an environment of declining interest rates and increasing stock prices for thirty plus years.

People should understand that the reverse can happen. If people don't pay attention to that, they can easily lose.


<<Desert Dave
Long
T (AT&T) Div yield 4.97%

CVX Div yield 4.20%>>


That's very good. I wish you good luck with your strategy.



Seattle Pioneer
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Thank you for recommending this post to our Best of feature.

And interest rates have a major impact on stock prices in a variety of ways.

Yes, yes they do. Which is why I doubt the Fed will raise rates any time soon.

A credit union I used to do business with is trying to lure me back with this offer:

"1 Year Money Market Certificates - 1.21% APY"

I hope they're not holding their breath.

Desert (Long T (AT&T) Div yield 4.97% & CVX Div yield 4.20%) Dave

PS
Good luck to you too.
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