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(07-09-2020, 03:42 PM)fenders53 Wrote: (07-09-2020, 03:12 PM)saimash Wrote: (07-09-2020, 02:16 PM)fenders53 Wrote: (07-09-2020, 01:51 PM)divmenow Wrote: (07-09-2020, 01:40 PM)fenders53 Wrote: They are cutting Div fourth quarter. I like your chances of getting it at $70 or less if you are still interested after you research recent news.
I agree with Fenders on D. Once they cut the dividend that was it for me. The yield is isn’t even 4% yet. Let it come down some, then buy. To me the defense contractors are the place to be buying some shares. LMT. NOC, LHX and RTX. Buy them when there hated.
In my imaginary world of perfect timing, I hope to end up a little overweight in the pure defense contractors soon on a market dip, then rotate some profits to RTX a quarter or two from now because I think it will be much slower to recover. They all seem to move with the big industrials to some degree (whether they should or not). I'm still hoping we can get a real rough market week this summer. The FED moves and election craziness may be epic in SEP-OCT so I don't want to be trying to time that.
Added a little more LMT and LHX at the close. Full position in LHX now and real close in LMT.
Thanks for the tips fender and divmenow... BTW, I keep reading about how you are at Full Position w.r.t a particular stock... What does that mean ? (Stupid question) ;-)
It's not a stupid question. This is a public forum so we don't generally share excessive personal info like our port balance if it's large. But mostly I don't wish to come off like I'm arrogant by saying things like, "Bought 200 shares of this or that today", when I know some are buying one share at a time. I always have time to help somebody decide if they should buy two shares of KO or one share of PEP. We all started somewhere.
To your question, if I state I now have a full position, that means I'm all in... all I care to own with current facts. That might be only $3K of a stock like WEN I consider a little speculative. It probably means $20K-ish for my core stocks like LMT, BMY or one of my UTEs. Then there is over-weight. I don't take those decisions lightly as it could affect my net worth if I get a few too many picks wrong. It's takes a special amount of conviction and if I add, I add slowly from a "full position".
It's my opinion you should have that full position "number" throughout your investment career. It will change with time as your port grows. Doesn't matter if it's $100, $10,000 or $50,000 now. It encourages some diversity and less propensity to gamble because you think you got this figured out. We never completely figure this out. To me proper capital allocation requires some sort of a plan that doesn't change daily.
When I say a full a position in normally means 100+ shares. If it's core or a top 10 holding for most likely its more then 100 but won't put a number or value on it lol . Just because I have a full position doesn't mean I wont add to that name if the price is right.
And if you buy 1 shares, 5 shares or of a company that's great too. Dollar cost averaging is the best investment you can make unless you think the stock it's a cant miss at a price point. Like for me when I bought WEN at $7 I went in for 500. This way I could trade it and then keep some for the long haul. It turned out to be a good decision since the stock is at $21.
So take your time when investing and don't jump in all at once. If you really like a stock such as RTX. Start at small and buy 5-25 shares or what ever you can afford and add to that position. In the long run you will be glad you did. As long as you have patience and don't listen to the naysayers and believe in the company and stay true to your investments; you will do well. GL
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And Fenders stop copying me with your LHX and LMT buys today haha
But I have to say. I like the entry points and will add even more if they get cheaper lol
Speaking of cheap Those oil stocks are getting cheap again. PSX and CSX. I currently own no oils names but am watching to get back in!!
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07-09-2020, 04:19 PM
(This post was last modified: 07-09-2020, 04:20 PM by fenders53.)
(07-09-2020, 04:01 PM)divmenow Wrote: And Fenders stop copying me with your LHX and LMT buys today haha
But I have to say. I like the entry points and will add even more if they get cheaper lol
Speaking of cheap Those oil stocks are getting cheap again. PSX and CSX. I currently own no oils names but am watching to get back in!!
Oil stocks are garbage, are you drinking again?
Saimash, ignore Divemenow and my banter, or jump in the middle if you'd like lol. Neither of us is going to starve to death. He is a better trader than I am. I think I am at least a little older and nearing retirement My core positions tend to be more conservative at this point of my investing life. He is right about averaging into positions. That's rarely a terrible idea. They can always go lower.
I'm pretty much all in on defense stocks now. I'll have a look at NOC though. If I never buy another share of RTX it's all good. My position isn't tiny and I was early. Stock has been dropping for a year and I bought it a half dozen times. I'll need a significant drop or I'll just hold and give it a few years if the dividend remains, which they insist is safe. I've been lied to before lol.
Back to oil. I am tip toeing in with put sales. I feel safe enough since RDS.b already cut and I am fine with current Div. I wish BP would cut and be done with it. I'd buy a few shares after that. They aren't going BK. None of the oil majors are but it would sure suck to eat a 20% SP loss and have the div cut hard.
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Sold 1/3 of my D to bring it in line with my other utilities and sold out of my WFC ahead of next week earnings and likely dividend cut.
Used proceeds to add to CVX, KMI, MO, and PM.
I think CVX is the strongest of the oil companies, and think KMI's dividend is safe as well.
Like MO and PM following the approval to market iQOS as a risk-reduced product in the USA, and think that should help it gain market share in the tobacco market.
Overall, I actually realize a slight gain in income from the pre-cut D and WFC levels with the trades.
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I bought some NOC, ABBV, RTX, BMY and PYPL.
Trimmed WMT and BBY
Yes I realize PYPL is up like a 1000 percent but I'm getting at a discount today down $6 haha. Other then MSFT I have no tech. I have to join the party and its what everyone wants these days so I cant fight it lol
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Over the past couple of weeks:
Sold all individual energy stocks (RDS.B, BP, ENB)
Started a Position in IXC
Sold all D
Added to PFE
Started a Position in WPC
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(07-10-2020, 12:38 PM)kblake Wrote: I bought some NOC, ABBV, RTX, BMY and PYPL.
Trimmed WMT and BBY
Yes I realize PYPL is up like a 1000 percent but I'm getting at a discount today down $6 haha. Other then MSFT I have no tech. I have to join the party and its what everyone wants these days so I cant fight it lol
I understand the "No Tech" syndrome. For awhile, in my personal/dividend investing accounts, all I've had was AVGO. I've been waiting a long time for an opportunity to buy more. I missed Apple at a 2% dividend in Dec. 2018. This time I was ready. I used the past couple of months to dollar cost average into a starter position with MSFT.
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I also have this no big tech thing. I never really saw the point in paying very high valuations for companies that may or may not exist in a few years. Trends appear and fade very fast in this space. But right now, for the past few months, I've been losing a lot to the SP500 mainly due to not having any of the big players in my portfolio.
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(07-12-2020, 06:01 AM)crimsonghost747 Wrote: I also have this no big tech thing. I never really saw the point in paying very high valuations for companies that may or may not exist in a few years. Trends appear and fade very fast in this space. But right now, for the past few months, I've been losing a lot to the SP500 mainly due to not having any of the big players in my portfolio.
Valuation always matters in the end, but you can sure miss out on a 50%+ pop while you wait. DGI investors tend to focus on value and dividends. They chase CSCO, IBM and the other leaders from decades ago. I own some QQQ but not enough. I sold most of my good tech months ago because it was expensive even back then. When tech finally comes down to earth it is going to take the major indexes with it unfortunately.
Initial position into AVGO.
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