Comments on: Lately I have been buying stocks like crazy…

By: HIB

HIB — Wed, 08 Oct 2008 20:49:05 +0000

It can be a wise investment now that everyone is running away from the stock market, it’s when everyone is buying that worries me about putting my money in.

Very timely post, I’ve had my eye on a few stocks as well. I’m heavy in GE, BAC and HAL so I’d like to buy something outside of those companies.

-HIB

By: Steve Austin

Steve Austin — Fri, 01 Aug 2008 20:11:44 +0000

High-div payers I’ve been buying recently: BAC (current yield of 13% at its low), LYG (current yield of ~11% I think, at its low), HRP (bought between current yields of 7-10%), CFC-B (a preferred, not common CFC, but still paying current 11-12%), and WM (an outright speculative mistake). I’m happy with all my purchases except getting hammered on WM.

When it comes to dividend coverage, free cash flow not earnings is what needs to be the cover. If I’m right, my extreme early retirement is all but locked in; if I’m wrong, it’s back to work for a few years. If I’m half-right, half-wrong, then I’ll continue the happy life of treading water on the cusp of extreme ER. ;-\

By: Alex K

Alex K — Sat, 26 Jul 2008 05:52:09 +0000

Jacob,
You mentioned you have growth stocks tied to baby boomer retirement. Which ones are those?

I’ve got index funds in my Roth IRA but I’d like to venture out into individual stocks with a taxable account. I just put $15k in there and bought $5k worth of GE (before you posted about it). I have been researching where to put the rest but the more I research the more uncertain I get. I have been thinking Phillip Morris (PM) is a safe bet but I’d like to get away from the crowds a bit.

By: Andy

Andy — Wed, 23 Jul 2008 19:13:39 +0000

Good times for you now. I am tech/growth stock heavy and taken a big hit lately. Though moving to value based now. Check out Dupont (DD).

By: Dividend Growth Investor

Dividend Growth Investor — Wed, 23 Jul 2008 14:45:57 +0000

If you are truly interested in investing in stocks for the benefit of generating increasing income from dividends, please check out this list of value dividend stocks trading at bargain prices:

http://dividendgrowth.blogspot.com/2008/07/some-cheap-stocks-to-consider.html

By: traderpaul

traderpaul — Tue, 22 Jul 2008 15:28:35 +0000

I would respectfully suggest that your strategy could still make you wrenchingly poor when the fed inflates the dollar to near worthlessness.

You should diversify out of the dollar.

By: Jacob

Jacob — Tue, 22 Jul 2008 15:10:41 +0000

@thrifty – Not so much. I worry more about a general decline due to global resource limitations.

@jc – Usually I use ETFs by looking at what they hold (you can do that with yahoo finance, just enter the ticker and click holdings) and then I go for the individual companies that they hold. SDY seems to hold a lot of banks (they tend to pay high dividends) which is why it has been getting a drubbing. The only two banks I would buy now is WFC and USB (not UBS). For investment banks JPM and GS.

By: passivefamilyincome

passivefamilyincome — Tue, 22 Jul 2008 02:09:29 +0000

Nice post! I like GE a lot, and was looking at Wells Fargo as well. I also like BAC.

By: jc

jc — Mon, 21 Jul 2008 18:31:38 +0000

Long time lurker here, great blog!

Jacob, I was wondeirng on what your take is on SDY. It tracks companies that have had increased dividend over the last 25 yrs & it’s taken a hammering lately. I’ve been looking at getting into that over picking up individual stocks… what are your thoughts?

By: Thrifty

Thrifty — Mon, 21 Jul 2008 17:51:40 +0000

Do you worry about the leveling if not fall of American supremacy? To be more specific, would it be a concern for you when a company operates only in USA and its dividend has to depend on the health of American consumers?

By: Moneymonk

Moneymonk — Mon, 21 Jul 2008 17:42:16 +0000

Im looking at JNJ – good company