Nice Dividend Stocks

I have decided ti start investing in stocks for fun and I have decided I like dividends. Tell me your favorite dividend stocks. Trying to get some dividends up in this bitch. Also, is there a good reason I shouldn't use RobinHood so long as I'm not trying to trade options and other kid shit like that?

 

also why do these people ask about my marital status and dependents and shit? none of their fucking business what is this garbage

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 

Okay EXCUSE ME. Excuse me very fucking kindly. APPLICATION? They made me submit an APPLICATION? Excuse me very fucking much but robin hood can pound sand. Asking me to apply to do business with you? They can gobble up a whole satchel of dicks. I'm taking my business back to OptionsHaus

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 

also the new riff raff album was a massive letdown. i was ready to bring back the '80s with him together. i've been walking around rome in matching white and neon reebok tracksuits for 3 days now. okay i let my hair out all winter in anticipation of creating a beautiful mullet. shaved all that shit the day this disappointment dropped

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 

Am I missing something or are both of those yields pretty low? If we're talking strictly apples to apples on yield here.

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 

goldie, I took a look at your reply last night but for some reason I can't read it now. I think you asked another question about why div growth versus div yield. just do some research, there have been plenty of CFA/financial analyst journal papers on this that are in the public domain. the short answer is this: companies with above market dividend growth as a group tend to outperform companies with the highest yields.

there's nothing inherently wrong with buying stocks with a 4-6% yield, just know that there are tradeoffs, and historically those tradeoffs entail poorer long term performance. and this is not just a backtesting hypothetical, I've seen it with my personal portfolio, client portfolios, and other investment managers.

 

Cool, followed. Any other good subs? My reddit feed is the strangest mix of mushrooms, chicks in rompers, and fucked up houses...

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 

I own ATT - I may not soon, need need to parse through their earnings a bit more.

They are a prime example of what thebrofessor is talking about in trade-offs on yield. Great dividend, but borrowed heavily to fund their massive acquisition.. now forcing them to look at deleveraging a huge debt pile, re-focusing their core businesses (which aren't, well, wonderful) and trying to grow, maintain CAPEX, etc. while keeping their dividend up.

Largely speaking though - they can probably keep the dividend going for a good while, but don't expect much of a return outside of that yield + or - a little bit over time if they can find some growth avenues.

 

Hey man could you explain this to me a bit please? The div growth vs. div yield thing is beginning to make sense. I'm reading "Looking for a Black Cat in a Dark Room" by Lenny Kisin and he's big on dividend reinvestment and shows how it can make a many-fold difference between not reinvesting given the same stock. He argues the theories that say stock price and dividend yield aren't correlated are wrong. Sounds logical what he says.

But I look at this ETF you mentioned - DGRO. Their div yield is 1.7%. So that's pretty low. But I see it's appreciated a bunch. since 2014 when it was started, I guess? Are you concerned investing in such a young ETF? So are you factoring in growth and dividend reinvestment somehow? If I never plan to sell anything and reinvest all dividends, how would I calculate my rate of return on this?

heister: Look at all these wannabe richies hating on an expensive salad. https://arthuxtable.com/
 
Most Helpful

you're overcomplicating things. the short answer is this: studies show that companies with above average dividend growth have had higher total return than companies with high dividend yields, even after accounting for dividend reinvestment.

I focus on total return, not just dividends, and if I had to guess the reason, it's because companies with growing dividends are actually growing their earnings and cash flow in a meaningful way so that they can afford to do this (companies are not keen on reducing dividends, so any increases are made with careful thought).

let's use a real life example: out of the below 10 companies, pick the 5 you think have the best growth prospects over the next 10y

MSFT D CSCO SO V KHC JNJ PM MDT BTI

it's no coincidence that the higher yielding names are in slow growth industries. I don't give a fuck if I make 7% on BTI if it doesn't grow. I'd rather have CSCO pay me 3% plus go up 20% a year, total return is what matters. yes, I know BTI is up 21% YTD, but it's also gone from $56 to $38 over that time period too. CSCO has more than doubled with a rising income stream. while the past isn't always prologue, I'll stick with total return thankyouverymuch.

the only times I've seen dividend yield favored is when someone's retired and in distribution mode, the higher yielding names (while more interest rate sensitive) tend to have less downside so they are better if you're actively taking out money.

finally, on DGRO, that was just an example of a turnkey solution for you, the research is much older than 5y.

 

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