Hi Folks, Looking to get some insight from traders who trade the high yield blue chip stocks in the FTSE100 or in the DOW. Being a high yield blue chip stock they tend to move quite slowly (most of them I think?) and so they are considered by a lot of traders to be more safe and more predictable for trading than other stocks outside the FTSE100 as these stocks are more volatile/faster moving etc. My question for the FTSE100/DOW traders out there is, do you trade the range no matter what the market sentiment is? for example we are in a bull market but you find a stock that has been ranging quite well over the months/years and it's now coming to the top zone where it normally tends to reverse and head back down to the buy zone. Being in a bull market are you fine with shorting a stock that's approaching this zone and showing consolidation? keeping in mind this level has acted as strong resistance over the months/years and tends to push price away each time (so a strong clean range the stock is bouncing between). One more question regarding blue chip stocks on the finance side of things. If you're looking through the blue chip stocks to play the range and the company has mass debt and not making much money at all in comparison to its size, normally I just avoid these stocks but it does bring to mind how can the company run and keep running on so much debt and being a blue chip would it be fairly safe to go into? A prime example could be Barclays PLC, making terrible profits in comparison to company size and it's debt is insane, 40 billion if memory serves? So the question here is would you ever invest in this stock with it being a bank or is this a complete write off being a mess financially? Any feedback is greatly appreciated! Edit - **Just noticed this could be posted on the wrong forum? I'm new so my apologies if that is the case!** Cheers, Steve
Hi Stev Welcome to the forums! Not always Some times you get some unexpected event that makes the entire market go down, blue chips will go down too, but they will not get hit as much as the higher beta stocks. As far as being safer and predictable for trading, to an extent maybe, but the high yielding stocks have high yields for a reason. Truly safe stocks are pretty boring, that is why they are safe! If you want to run a scan, check out https://www.tiingo.com/screener and see what comes up that fits your parameters.
Hi StockJock, Thanks! My reason for the main focus on high yield is because I'm looking to focus on any blue chip stock really, slower moving ones which will allow me to trade a much bigger size and will not be extremely volatile on that size so essentially trading safer. What's your thoughts on that and do you have any recommendations on that kind of route that I should look at? Regards, Steve
If you're looking for high yield, safe dividend stocks, the "go-to" is usually the Dividend Aristocrats. These are continually monitored and some move out and in as the list gets refreshed. You can find out more about it here: http://www.suredividend.com/dividend-aristocrats-list/ @JerryM is a good resource, as I know he does a lot of investing in companies like that.
