All things STOCKS

#2,378
#2,378
BigOrangeMojo said:
Going to be over there in a couple of weeks. Hope I dont have to call on you!!
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😂 we mostly do residential and commercial work, not too much with cars anymore. We’ll still unlock them, but that’s about all. Car key customers are really just a pain in the arse.
 
#2,379
#2,379
Orange_Vol1321 said:
I'm not sure what you mean with percentage.
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So a lot of new traders think the more shares the better. They think “oh, I’ve got $2,000 to invest, so I want 20,000 shares of this .10 stock”. But what they don’t realize is they could buy 2 shares of $1,000 Tesla or 20,000 shares of SHIP...if either one goes up 10%, it’s still 10% of $2,000. The amount of shares doesn’t really matter. The % gained or lost is all that matters.
 
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#2,381
#2,381
VolAllen said:
So a lot of new traders think the more shares the better. They think “oh, I’ve got $2,000 to invest, so I want 20,000 shares of this .10 stock”. But what they don’t realize is they could buy 2 shares of $1,000 Tesla or 20,000 shares of SHIP...if either one goes up 10%, it’s still 10% of $2,000. The amount of shares doesn’t really matter. The % gained or lost is all that matters.
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Except almost all brokers (not aware of any that don't but also not a penny stock trader) will charge you a higher commission on the 20k shares of the 0.10 stock. Small, but compounded over thousands of trades it definitely makes a difference.
 
#2,382
#2,382
JFreak said:
Except almost all brokers (not aware of any that don't but also not a penny stock trader) will charge you a higher commission on the 20k shares of the 0.10 stock. Small, but compounded over thousands of trades it definitely makes a difference.
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I trade on Robinhood so I don’t have any of those problems lol
 
#2,383
#2,383
DancingOutlaw said:
We are phased out of IRA now that my wife’s work has a retirement plan. We contribute the $6k per year but that is a measly sum. I still use the traditional 401k at work though we do have a Roth option. My mindset is why give the government tax any earlier than you have to. I also don’t trust them to honor tax treatments down the line, perhaps means testing or offering “amnesty” on Roths before making some part of them taxable.
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I'm kinda the exact opposite. I pretty much Roth everything possible. For IRA, we do backdoor Roths now to get around the phase out limits. At some point, the math doesnt work on that but still think at 40 it still works out. I have traditional 401k; wife has choice of Roth or Traditional 401k (she does the Roth).
 
#2,384
#2,384
Thunder Good-Oil said:
15-20% a year for a decade or 2 will make a ****load of money.
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I am lost on dividend stocks. I read some about Disn, Vzn, and ABBV and the large dividends. Could some educated me quickly on how it works? For instance, I have 20k in 401k. The dividend is 7% a year, and then move up and down but say they make 5% yoy. Would most large capital stocks like Disney make 12% every year or is that not at all how dividends work? Sorry in advance still a little green on this stuff.
 
#2,385
#2,385
LIvol said:
I am lost on dividend stocks. I read some about Disn, Vzn, and ABBV and the large dividends. Could some educated me quickly on how it works? For instance, I have 20k in 401k. The dividend is 7% a year, and then move up and down but say they make 5% yoy. Would most large capital stocks like Disney make 12% every year or is that not at all how dividends work? Sorry in advance still a little green on this stuff.
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Dividends are simply payments from the company to the shareholders. The board declares how much per share will be paid. The bigger companies that have been around for a long time are typically consistent payers. The percent (or yield) is just a calculation that takes the previous dividends (per share) that were paid to the share holders divided by the market price of a share of the stock. So the percentage can be deceptive. That yield might be very high, but if the business is unable to generate the cash to continue paying them, eventually the board will have to cut the dividend payments.

Dividend payments aren't always the best use of cash by a company. The payments are not tax deductable to the corporation, but they are taxable to the shareholder recipient.

Some businesses might be organized such that they are required to pay out large portions of their earnings in the form of dividends. I'm not up to date on all of the laws and IRS rules, but Real Estate Investment Trusts and certain partnerships must pay out something like 90% of their earnings as dividends iirc.

The earnings per share needs to be considerably higher than the dividends being paid per share in order for the dividends to be paid (and increased) consistently.

Companies that are growing rapidly often pay little or zero dividends as they are creating more value in the share price by investing that cash back into the business. Most high tech firms were doing that and only recently some have been transitioning into solid dividend payers.

Don't just look at the percentage yield of a company's dividends. Compare the earnings per share with the dividend payments per share.

Most companies that distribute dividends do it quarterly. Sometimes, especially during a merger or acquisition, a company that's loaded with cash will have special, one time dividend payments to their shareholders before the deal is settled.

Also, a company that is doing poorly can have a deceptively high dividend yield. Dividend payments could have been eliminated by a company's board of directors, but the dividends paid in the last 12 months divided by a crashing stock price will suggest a very high dividend yield.

Solid dividend payers are great to hold in Roth IRAs since those payments will never be taxed.
 
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#2,386
#2,386
LIvol said:
I am lost on dividend stocks. I read some about Disn, Vzn, and ABBV and the large dividends. Could some educated me quickly on how it works? For instance, I have 20k in 401k. The dividend is 7% a year, and then move up and down but say they make 5% yoy. Would most large capital stocks like Disney make 12% every year or is that not at all how dividends work? Sorry in advance still a little green on this stuff.
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Here's a recent example of how they work. Earlier this year, I bought 25 shares of CVX (Chevron) at $81 (ouch!) and 50 shares at $58 for a total of 75 shares. CVX declared a $1.29 quarterly dividend per share ( it will be paid in June). CVX pays the quarterly dividends in March, June, September, and December. The dividend has nothing to do with how much I paid per share for the stock.

When CVX pays the dividend this June, I can either get a check for 96.75 (75 shares * $1.29) or I can reinvest in additional CVX shares (This is called a Dividend Reinvestment Plan or "DRIP"). Unless your main source of income is dividends, I recommend the DRIP option. Assuming CVX is the same price as it is now, I will have 76.1 shares at the end of June (75 plus 1.1 from the DRIP).

Common stock dividends arent guaranteed. For example, I bought LVS in April at approx $40/share and they historically paid a dividend. However, they suspended their dividend for the short term.

If you are going to invest in dividend stocks, look for companies that increase them annually. CVX is a great example. For example, CVX paid $1.19 per share per quarter last year.
 
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#2,387
#2,387
@Freak posted a list of dividend paying companies a couple of months ago. I forget all of the screening criteria. It might have been high yields and long term payers. He added a column with the dividend payout ratio (eps divided by dividend per share) if I'm remembering correctly.
 
#2,388
#2,388
My guess is the Trump-China meeting will be more positive than most people are thinking, sending stocks up leading into the weekend. If not, just close your trading app and check back in a few days lol.
 
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#2,389
#2,389
VolAllen said:
My guess is the Trump-China meeting will be more positive than most people are thinking, sending stocks up leading into the weekend. If not, just close your trading app and check back in a few days lol.
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I'd agree with you but Trump's midnight tweet might scare the markets a bit. I know he's trying to get COVID out of the news cycle but not sure that was the way to do it...
 
#2,390
#2,390
BigOrangeMojo said:
Here's a recent example of how they work. Earlier this year, I bought 25 shares of CVX (Chevron) at $81 (ouch!) and 50 shares at $58 for a total of 75 shares. CVX declared a $1.29 quarterly dividend per share ( it will be paid in June). CVX pays the quarterly dividends in March, June, September, and December. The dividend has nothing to do with how much I paid per share for the stock.

When CVX pays the dividend this June, I can either get a check for 96.75 (75 shares * $1.29) or I can reinvest in additional CVX shares (This is called a Dividend Reinvestment Plan or "DRIP"). Unless your main source of income is dividends, I recommend the DRIP option. Assuming CVX is the same price as it is now, I will have 76.1 shares at the end of June (75 plus 1.1 from the DRIP).

Common stock dividends arent guaranteed. For example, I bought LVS in April at approx $40/share and they historically paid a dividend. However, they suspended their dividend for the short term.

If you are going to invest in dividend stocks, look for companies that increase them annually. CVX is a great example. For example, CVX paid $1.19 per share per quarter last year.
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Good info.
 
#2,392
#2,392
Orange_Vol1321 said:
What tweet are you talking about?
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The one that Twitter is hiding due to word "Thugs" and the physical violence threat (this line was previously used by a Miami police chief with racial issues).

Trump has a narrow path to re-election and that path includes lower voter turnout from the African Ameeican community (like 2016). Anything that increases that turnout likely hurts Trump's re-election chances (and in turn, the market)
 
#2,393
#2,393
BigOrangeMojo said:
American is probably my least favorite stock in my least favorite industry. There's definitely money to be made trading but if you are investing long-term, I just don't like American. Here's why I don't like American long-term.

From 2015-2019, AAL had the following tailwinds
- Booming economy
- Relatively low fuel costs
- Nearly full capacity
- Stock buybacks
- Levered balance sheet

Even with all that, the stock was down over 30%.

They could come up with a vaccine tomorrow and I still think American could be bankrupt within 12 months without another bailout. Not to make this political but do you think Biden and the Democrats would bailout a TX HQ'ed Company that had significant stock buybacks or make them be an example? The risk-reward is better with some of the low-cost carriers or you are safer with DAL or LUV. Just my $.02.
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Good call. Getting out of my 15 shares today.

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#2,394
#2,394
Orange_Vol1321 said:
Good call. Getting out of my 15 shares today.

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I have 200,000 AA miles. They are gone or worthless now. Another case of poor management running a company into the ground.

I had already quit flying, and kept waiting on a decent flight to London on British airways which is a non stop from Nashville.

They might make it, but the miles will be worthless.
 
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#2,395
#2,395
Go aeiou said:
I have 200,000 AA miles. They are gone or worthless now. Another case of poor management running a company into the ground.

I had already quit flying, and kept waiting on a decent flight to London on British airways which is a non stop from Nashville.

They might make it, but the miles will be worthless.
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The last time the airlines filed BK, the frequent flier programs stayed intact. AA, if they do declare BK, will likely reorganize and not liquidate. No guarantee the programs will stay intact but as long as they dont liquidate, I expect they will.

Another option is to use your AA miles to book hotels. Not quite as much benefit as airfare but the conversion rate isnt bad now.
 
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#2,397
#2,397
Orange_Vol1321 said:
So what's happening currently with the premarkets moving?
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A combination of manipulation, Friday dumping, and fear selling. I’m actually feeling pretty optimistic holding SAVE. Take a look at what happened the previous two Friday’s. Dipped a little, then huge jump on Monday from travel news, states opening back up, higher TSA #’s, etc..
 
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#2,398
#2,398
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