TCCoA Forums banner

221 - 240 of 254 Posts

·
Super Moderator
Joined
·
12,235 Posts
I hate XOM. I'm just stuck in it. I've got to ride this out until I see at least a ~ 80% recovery back to around $60 to $70 a share before I can bail out. The mean consensus is $67.68 and I'd be happy to bail at that level.

I've been dollar cost averaging into it for decades in a DRIP; now that it's sitting at a 10 year low and there's talk of a dividend cut I'd really like to get out of it. A recovery to $60 isn't out of the question but how long that might take is anybodies guess.

Wow you're YOLO is 60%! You da man! There have to be some winners in that mix!
 

·
Super Moderator
Joined
·
12,235 Posts
Oh, I misunderstood. You're talking return percentages. I missed the tiny -sign in front of your numbers. I thought you were talking diversification of your portfolio percentages. Speaking of which, I need to figure my sector diversification. I know I'm heavy tech. some retail, and some communication and transportation companies.
 

·
Registered
Joined
·
2,748 Posts
Oh, I misunderstood. You're talking return percentages. I missed the tiny -sign in front of your numbers. I thought you were talking diversification of your portfolio percentages. Speaking of which, I need to figure my sector diversification. I know I'm heavy tech. some retail, and some communication and transportation companies.
If the majority of your assets are in diversified funds, this won't be an issue. However, you can check it with Morningstar x-ray
 

·
Registered
Joined
·
2,438 Posts
Discussion Starter #225
Q: How much stock should be bought of any particular company before moving onto the next company stock purchase?

Basically, I'm looking at purchasing more shares of companies I've already purchased in order to increase my quarterly dividend payments. What is a good rule of thumb to use on how many shares to purchase before doing the same with the next company? Right now, I'm looking at purchasing more stock in Ford (F) or IronMountain (IRM).
 

·
Registered
Joined
·
2,748 Posts
Q: How much stock should be bought of any particular company before moving onto the next company stock purchase?

Basically, I'm looking at purchasing more shares of companies I've already purchased in order to increase my quarterly dividend payments. What is a good rule of thumb to use on how many shares to purchase before doing the same with the next company? Right now, I'm looking at purchasing more stock in Ford (F) or IronMountain (IRM).
My "rule of thumb" I've operated by since I was in my mid-20s (when I first whole heartedly adopted the portfolio allocation model) is to never put more than 5% of my total investable net worth (not including my home equity since you gotta live somewhere) in any one stock. The idea here being that if your stock goes to nothing, only losing 5% of my liquid net worth isn't a life changing event.

This requires you to have an accurate spreadsheet of what you own. A morningstar xray to uncover your fund holdings would be even better.
--
Now, you asked about doubling down on dividend paying stocks that you already own.

Personally, I'm a bit more skeptical here as both F and IRM pay good dividends now but it's not clear if this is sustainable.

Says that the current payout is sustainable by earnings (44%) but this was pre-CV19/oil tradewar.

2020 dividends are probably safe. Not so sure about 2021

On IRM, the cash payout ratio is 210%. That's NOT sustainable long term. While their business is pretty stable (it's a real estate investment trust built upon the biz of storing peoples old records), this level of payout is simply NOT sustainable long term. We discussed this a few days ago.

--
I'm not questioning your desired to put more money into dividend funds OR whether or not you should keep your money in F or IRM.
My concern would be about putting MORE money into these two assets which are also subject to a) CA and Fed taxes and b) equity risk since you are a shareholder and not a bondholder.

Q: How much of your net worth is already tied up in F and IRM individually?
Q: How much is tied up in individual stocks in total (as compared to larger scale ETFs and/or mutual funds)?

NOTE: I could something as niche as an energy ETF or marijuana ETF as pretty much an individual stock. Something that's broad market (small cap, med cap, large cap, or overseas, isnt).
 

·
Registered
Joined
·
2,748 Posts
On the bright side, I just finished up a zoom meeting in which one of my engineers played FMV (IIRC, it was a pretty large 720p or 1080p clip) across the presentation link to show a technology demo to a customer and it was surprisingly smooth. I assumed it was smooth since both my engineer and I have fiber to the home BUT the client also commented that he was shocked at how well it played back on his phone over 4G.

Zoom is doing quite well. They are up 61% YTD (peak was +83%) since Jan 17th. I don't think this price is sustainable but their underlying technology certainly does work.
 

·
Registered
Joined
·
2,438 Posts
Discussion Starter #228
I'm not questioning your desired to put more money into dividend funds OR whether or not you should keep your money in F or IRM.
My concern would be about putting MORE money into these two assets which are also subject to a) CA and Fed taxes and b) equity risk since you are a shareholder and not a bondholder.

Q: How much of your net worth is already tied up in F and IRM individually?
Q: How much is tied up in individual stocks in total (as compared to larger scale ETFs and/or mutual funds)?
While I recognize that dividends will be taxed, we've discussed here that dividend payments are more favorable in regards to tax purposes than selling existing shares. Even then, I'll side on error of paying a higher share on taxes and set aside 35% of what I make on dividends for tax purposes.

Q: Does net worth include what I've put into my stocks, or what my stocks are currently worth?

Either way...

A: Under $500 between both
A: Currently, not much. Under $1,000
 

·
Super Moderator
Joined
·
12,235 Posts
Net worth is the value of your assets (stocks (market value - as defined below), vehicle(s), savings, personal property, etc.) minus liabilities (debt, and/or taxes due).

What your stock holdings are currently worth is called market value.

As to dividends, personally, I'd look at some of the other dividend kings and aristocrats. Granted F is at a pretty attractive price at this point.
 

·
Registered
Joined
·
2,438 Posts
Discussion Starter #230
Net worth is the value of your assets (stocks (market value - as defined below), vehicle(s), savings, personal property, etc.) minus liabilities (debt, and/or taxes due).

What your stock holdings are currently worth is called market value.
LOL, in that case, because of student loans, my net worth is along the lines of -$180k. That's not a typo.

I'd definitely love to play the "get rich quick" scheme, and that was an initial incentive of me trading stocks. The TLRY earnings definitely got me hooked. I realized a while ago that unless I know exactly what I'm doing, it's going to be very hard to make that happen again. I was just lucky with TLRY.

Now, I'd like some steady growth with dividend returns, where the dividend return payments would basically be able to pay for some bills with the eventual goal of getting out of debt.
 

·
Registered
Joined
·
2,438 Posts
Discussion Starter #231
Q: Are you folks seeing a slowdown at work because of less travel, quicker commutes b/c of less traffic and/or restaurants being less crowded?
As far as traffic goes, no. That's still the same, lol.
Update on the traffic situation in my part of SoCal:

There is noticeably less traffic now. I'm definitely liking that part, lol.
 

·
Super Moderator
Joined
·
12,235 Posts
Thanks for the Portfolio review link Gunn. I'll check it out when I have time. Very busy with work right now.

Boom! Market implosion today! Wow!

DAL fell off the cliff with everything else. I caught the falling knife at $37 where I had a limit buy order sitting; it settled at $33.71 at the close. I do feel ok about it as I heard that Warren Buffet's Berkshire Hathaway was picking up DAL before today's plummet.
 

·
Registered
Joined
·
2,748 Posts
Don't look today. Seriously, dont.
Just when you think that CCL and RCL couldn't drop farther, they surprise me.
The only stock in my "gambling acct" aka my rollover IRA (so I don't care about taxes) is fitbit. They are sitting at $6.16 compared to their $7.35/share price as offered by Google. I'm still in the money there.

Do you believe it will go through? Well, if so, that is a 19.3% gain.
If not, the stock might go back to its pre-google announcement price of $3-4.
 

·
Super Moderator
Joined
·
12,235 Posts
37910
 

·
Registered
Joined
·
2,748 Posts

·
Registered
Joined
·
2,438 Posts
Discussion Starter #237
I'm sure you guys have seen this / are aware of this, but DJI crossed below the 20k mark this morning. Big news.

37954
 

·
Super Moderator
Joined
·
12,235 Posts
I though the Daily Mail was basically a tabloid. But yeah, Wow, well, it's 9-11 all over again, only this time no one know when it will end. Crazy.

I kick myself for not seeing this coming and cashing out my 401K. It will eventually end. A vaccine will eventually be developed. In 3 to 5 years we'll all be talking about the great COVID19 outbreak of 2020.

The market has crashed before. The world has gone to war, there have been other pandemics, Iife goes on. I just wish I hand more cash on had to invest with ...

 

·
Registered
Joined
·
2,438 Posts
Discussion Starter #239
I just wish I had more cash on had to invest with ...
You're telling me!!! I wish I had more free flowing cash available to me to take advantage of all these stocks "on sale" right now. 😭😰
 

·
Super Moderator
Joined
·
12,235 Posts
I just read that GM, Ford and Chrysler are shutting down at least through 3/31.
 
221 - 240 of 254 Posts
Top