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Interesting Dividend Strategy highlighted on CNBC

Discussion in 'Investing' started by Quantamize, May 1, 2019.

  1. Quantamize

    Quantamize New Member

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    Thoughts? Buying dividend stocks isn't always safe. Personally, always worried about simply buying stocks with high dividends since they can simply be offering a high yield because the stock price has sold off. Of course, the bigger worry is that a sell-off in a stock's price is a precursor to cash flow issues (which inevitably impact the dividend payout ratio).


    https://www.cnbc.com/2019/04/26/qua...-investing-for-investors-playing-it-safe.html
     
  2. TomB16

    TomB16 Active Member

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    Couch potato and some other strategies, they are built on the assumption that money goes from bonds to stocks during good times and from stocks back to bonds during bad times. At one time, this was the case. Now, I believe this theory is only partially true.

    I hold mostly grumpy old man stocks and I've noticed they often do best during periods of market uncertainty. On Friday, for example, our portfolio rocketed ahead by 4% in a single day. I estimate that none of the companies represented by those stocks made any announcements of significance. One company released an earnings report on Thursday morning, before trading, but it was completely as expected. Thursday afternoon, that company was flat. On Friday, it went up 6.5%.

    Based on this and other observations, I speculate a significant number of traders are using REITs and other staid investments as a holding place for equity, in favour of bonds or cash.
     
  3. Andrew Coleman

    Andrew Coleman New Member

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    For me dividends and appreciation in real estate are just icing on the cake and not the main objective.
     
    StockJock-e likes this.
  4. TomB16

    TomB16 Active Member

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    It was another outstanding day for grumpy old man stocks.

    If this keeps up, I will be able to retire from my retirement.

    I think it's pretty clear people are parking money in REITs and stable, unexciting stocks.
     
  5. TomB16

    TomB16 Active Member

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    This is shaping up to be another good day on the markets for us.

    Old guys rule. Lol!

    At times like this, I'm glad to not be engaged in the redistribution of wealth we call trading.
     
    StockJock-e likes this.
  6. TomB16

    TomB16 Active Member

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    In case there is any doubt that traders are using REITs and other grumpy old man stocks as holding places for money, all of my core stocks are edging down this morning as the markets move up.
     

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