Results tagged “Stocks”

Bought some GE today at the same price it was 12 years ago.  Got a nice 10.5% yield (they re-stated today that they were keeping their payouts for 2009 at the same levels as previously announced).

 

I partially did it because I think it'll go up, but also because I want to try to figure out this DRIP (divident reinvestment plan) enrollment process for a taxable account at E-Trade.  I've easly signed up for quite a few differen't securities into the DRIP plans in my tax sheltered Roth IRA account, but failt to see the same ease of use in a general trading account. 

With the battered economy, somewhat risky investments into possibly undervalued high dividend  stocks could be the way to score big over time.  One such stock - Allied Capital (ALD) is trading below 8 when it's 52 week high was near 30.  If they kept up their current annual dividend, this would give it a yield of over 34%!  Obviously there are a ton of risks here inherent to not only the market, but this stock specifically and a likelihood in my opinion that the dividend will be cut and then rebound.

My recent perhaps reckless foray into individual stock ownership over mutual fund ownership has an interesting addition to it - Allied Capital.  I purchased this stock at 8.00 per share during it's big dip this week amid one of it's divisions filing for bankruptcy.  Assuming that it keeps up on it's spree of ever increasing dividends (or stays flat), I locked in a dividend yield of 32.5%.  This isn't half bad.  I turned on some dividend reinvestment options for the stock as well.  Regardless of the dividends, it's good seeing at least one security that is at a higher price than when I bought it in my portfolio! 

Visa (V) is only the second stock I've ever owned - I typically stick to the realm of Mutual Funds.  The frist was EMC (EMC) and my obsessive compulsive nature made me check the stock so much that I sold out somewhere in the 23s.  While I'm glad I did that, I'm much happier holding Visa.   The only real thing that people can say in the negative for Visa is that it 1) has no proven history and 2) IPOs aren't good especially right now.  To the second point, you are correct except in the case that the company is proven already - and I think this is the case.  There is some validaity to this argument though.  The first issue gets a response of "Past performance should not be used as an indicator of future earngs/price points". 

 

I'm a cheap enough guy that I'm emotionally satisified as soon as I make back my fee for the purchase, but hold out hopes for, as Will Farrel said it best in Blades of Glory, "the smell of sweet gold".  Mom always said it was good to hope...