If you were given $10,000 and told you could invest in only one of the following three companies, which one would it be:Berkshire HathawayDisneyRealty IncomeJust an academic question, not meant for advice. Trying to gauge how people see dividends/value versus growth for the long term.
Re: https://www.dividend.com/Oh, what to do with 10K.BRK.B has not dividends no rewards for owning BRK. As a swing trader, yes. https://www.barchart.com/stocks/quotes/BRK.B/interactive-cha...O has dividends and pays currently 0.23 per share per month. or 29.90 per month. As a swing trader, yes.https://www.barchart.com/stocks/quotes/O/interactive-chartHave owned Realty Income (O) for the past 7 years receiving monthly dividends compounding as a DRIP.DIS has dividends and pays currently 0.88 per share semi-annually or 12.70 per month. As a swing trader, yes.https://www.barchart.com/stocks/quotes/DIS/interactive-chart...Just a thought,Quillnpenn - a poor church mouse scratching for a living a Swing Trader.
Trying to gauge how people see dividends/value versus growth for the long term.If you want to know the answer to that question, you would need to ask that question.I own BRK-B and DIS. They are stable large companies. Not particularly growthy. Not value. There was a time when folks held BRK-B as part of their "cash" position.I own lots of dividend players, just not Realty Income. It appears to have a decent dividend.VickiFool One Guidelong BRK-B & DIS
Thanks for these replies. They are helpful.TMF-V, I have heard people say they hold certain instruments as cash, but I never really understood what they mean by that. What is the theory behind it? To me, holding any equity or ETF - I have heard people/CNBC pundits say they have sought shelter in the S&P instead of the broad market, as an example - isn't really cash in that it can go down at any moment. Do they mean they'd rather take the risk of the least-risky instrument that is an equity and not cash to avoid cash's dead return value? And let me ask: why not O? I'm not recommending O, by the way; just curious on any thought process behind this.And yes, I sort of didn't ask directly because I have been fascinated lately (as some may recall from recent posts of mine) by DRIP calculators. Assuming accuracy, what's interesting to me is something like O seems to have outperformed over the years, and it stresses monthly dividends. While we like to talk about DIS and BRK, is the REIT sector something that could be way more important over time to a portfolio, and is DIS and others more trade-worthy (and by trade I mean maybe get in and out on rolling two-year bases if the timing works out)? I just don't know. I think it's a fun question. But that's what I was getting at, and I suppose you're right, I should have been a bit more direct with that.Quillp, from your post, if I understand it, what you are saying is all these stocks are able to be traded short-term, through the swing method, but that out of the three, you own, and would own, only O? That is telling as well if I am getting that right. And in terms of swing trading, do you just trade stocks that you wouldn't mind being stuck with - the large caps, big-brand icons like DIS, PG, whatever you would feel comfortable owning - or do you do any stock at all? Thanks...
Hi esxokm,O was just never on my radar. Generally speaking I was introduced to most of my dividend payers by a service or newsletter to which I subscribed. None of them ever promoted O or at least they didn't get my attention if they did.ETFs, S&P, etc. definitely not cash. If you don't want to do much work, a low cost S&P ETF is easy to invest in and it will only trail the actual index by whatever fees you have to pay. But, again, not cash. For money I need for taxes or expenditures, I just keep in a money market. I apparently own 22 companies that pay dividends of 2% or greater (including a couple MLPs). But, they are a source of income and I don't automatically re-invest.If you haven't found the Dividend Growth board, you can find it here --https://boards.fool.com/dividend-growth-investing-116719.asp...There is also a Value Hounds discussion board here --https://boards.fool.com/value-hounds-118990.aspx?mid=3409042...VickiFool One Guide
Personally I would rate Disney as a growth stock. They have strong management, are consistent industry leaders, and clearly have a vision for the future. Most think they are likely to succeed. Miss-steps are rare.Warren Buffett is a well known value investor. Most regard Berkshire Hathaway as a value stock. He is strict in his choices. Value stocks have been out of favor recently. On the Berkshire discussion board you will find investors questioning the value strategy. Why can't BRK keep up with growth stocks. Buffett is on record saying he sees problems trying to keep BRK up with the S&P 500 in performance. But those who see investments as a commodity think that makes BRK a buy that is likely to catch up with the market.Themes come and go in investing. Pick the one that makes sense to you. Yield stocks are not my cup of tea. No comment on them. Choose wisely.
Thanks for the links to the boards...not sure if I have visited those yet, but they seem like good resources. Paul, I agree with Buffett needing to broaden out to more growth stocks. Good advice to choose wisely...lately I have been trying to see what statistics/research says about long-term performance with different kinds of themes. Short-term I'm sure trades can be made, even over a few years' time (I consider long term well over 15 years) with things like value, etc. Companies that combine high-yield with growth have lately fascinated me. Thanks for the reply...
Companies that combine high-yield with growth have lately fascinated me.Some see high yield growth stock as an oxymoron. That's because growth stocks usually have a huge need for capital to expand and continue their growth. Hence, they are likely to invest their cash flow and income in growing their business.High yield often comes from mature companies who have modest need for capital investment. They have the cash to pay dividends.There are some accounting gimmicks that allow companies to pay out more than they earn in dividends, but for most the limit is about 50% of earnings. (And lower is better for a growth company.) You can get a quick estimate of this percentage of income going to dividends by multiplying price earnings ratio by %yield of the stock dividend.
Thanks for that additional info.I assume one can check free cash/FFO to get around any gimmick?
esxokm,https://www.barchart.com/stocks/quotes/ROKU/interactive-char... ROKU is my favourite chart to swing trade.place mouse on 9/30/19, that is the date of purchase. Now place the cursor on 11/19/19 is the date to sell the stock.However, we may be seeing a head-fake coming if the price rises above the 165.10 high price on 11/18/19 for a Frequency Daily 2 month chart.3-month chart the same results.The 1-month chart says to buy on 11/08/19 and sell on 11/20/19.We like to use the 2-month chart as a default. https://www.barchart.com/stocks/quotes/DIS/interactive-chart... DIS 2 month chart Simon Sez to buy on 10/04/19 and sell on 11/15/19.https://www.barchart.com/stocks/quotes/BRK.B/interactive-cha... 6 month chart Simon Sez to buy on 8/8/19 and sell on 11/08.The 2-month chart Simon Sez to buy on 10/04 and sell on 11/08 and we then wait and wait for the next buy signal.https://www.barchart.com/stocks/quotes/PG/interactive-chart PG 4 month chart Simon Sez to buy on 7/26/19 and sell on 10/25/19 for about 9.7345 percent profit.let's look at the default 2-month chart and Simon Sez to buy on 10/21 and sell on 10/25/19 and then we wait and wait for the next buy signal.Simon Sez only gives two (2) simple rules to follow. https://boards.fool.com/simon-sez-ii-34348609.aspxchanged QQQ to 2 months https://www.barchart.com/etfs-funds/quotes/QQQ/interactive-c... in on 10/04 out on welllll still waiting for a SELL signal. Doesn't matter, Simon Sez works on any kind of stock so long as you buy right out the starting gate and let it rip. https://www.barchart.com/stocks/quotes/ARWR/interactive-char... from the https://www.barchart.com/stocks/signals/top-bottom/top?viewN...I owned PLOW and moved on that is on the list. PLOW is showing a possible head-fake. So what, PLOW made a very nice profit.I just gave you the keys on how to be a successful Swing Trader. If you want to be a millionaire within about 8 years with 50K down regardless of whether the market goes UP or goes DOWN (recession) just tetter totter SPXL / SPXS. At each profit compound the returns into the other. The hardest part is the waiting and waiting. Currently owning SPXL and waiting for the next SELL signal. Remember this, the TMF police will never never ever teach how to be a successful trader period. If they ever did, they would go out of business. Think about it.Quillnpenn - a poor church mouse scratching for a living as a Swing Trader.
esxokm,Kruz on down to my porfolios 1 of 12 to 3 of 12 of which I own and a few from other portfolios. I set rules to go by and stick to them.https://boards.fool.com/carla-peruse-the-following-at-your-l...Enjoy the journey,Quillnpenn -
I assume one can check free cash/FFO to get around any gimmick?Yes, that seems reasonable if you know your way around the company financials.But you are talking about a hand full of companies compared to wide world of well known quality stocks. Rarefied air. Choose carefully.
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