XLU - Hold Utilities for ConsistencyUtilities are basically yesterday's tech stocks. In the late 1800s, the stock market ditched railroads and moved on - to utilities. In fact, there was a time where speculation ran rampant and panics were set off based on the movement of utility stocks.
Today, utilities are the opposite of tech stocks. They are basically the most consistent and boring stocks you can find on the market. The utility SPDR (XLU) yields 3.3% on dividends & is a very good composite of the utility sector. It has gone up 16% over the past 5 years, which pales in comparison to the S&P 500 (43%.)
The only reason you would want to hold onto them for the long term is that you can be absolutely sure they will stay & keep paying dividends as long as the US stays alive.
Right now, XLU (and pretty much all utility stocks) has come down sharply. It briefly reached the key range near $61 only to sharply rebound.
Because utilities are so consistent, they will generally crash and rebound pretty sharply.
In 2020, utilities crashed quickly & stayed down due to extreme volatility. When you have any short of sharp decline, utilities usually move with the trading day and sometimes even underperform.
In 2008, utilities crashed and stayed generally undervalued for a while.
In 2000, utilities also crashed and stayed undervalued for a while. This may have been due to the Enron scandal around the time.
If you are worried about 1970s-like stagflation, you will be pleased to hear that utilities outperformed during the time and generally stayed flat. (The only catch is that during a major crash, they are not completely immune and will probably go down.)
From a trading perspective, this is a great time to enter because you can be pretty sure that within a few weeks, XLU will rebound to as far as $74 within a matter of weeks.
From an investing perspective, this is also a great time to enter if you like utilities.
Often, people who are very bearish miss out on a lot of gains because they do not hold anything for the very long term.
Utilities are sort of the most defensive stock option, and I would recommend them if you think a super financial crisis is approaching.
You can hold them with minimal fear of stock declines. In fact, they stand to profit from the issues we may be facing - stagflation, energy crisis, etc. Plus, you get a steady flow of dividends that you can reinvest.
In normal conditions, utilities underperform - but overall, they outperform during bear markets.
You could even pick pretty much any regional utility. I did some chart analysis on DUK (Duke Energy) and found it had also bounced off a key support. Almost all the utilities have the same chart pattern, with the exception of troubled ones like PG&E.
In summary, I would go long utilities here if you don't know what to pick in this time. You can be almost certain buying for both the long and short term that utility stocks provide value.
Dividendstocks
SCHW: One of the worse performers in 2023. Cautiously $LONGMain Idea/Insider "Alpha": Many large tech companies like NASDAQ:GOOG and NASDAQ:META use Schwab as their vendor to manage RSU grants. This makes me think Schwab is a great long-term investment and will continue to have good cash flow, assets under management, etc.
In the idea above, I present a bull case and a bear case. At worse, this will be neutral and you can sell options against your position and/or collect dividends.
In high interest rate environments, usually "banks" do well, and so schwab will benefit from halo effect if we see finance stocks continue to do well over the long-term.
Other data points
This website seems bullish as well:
simplywall.st
REWARDS
Trading at 12.7% below our estimate of its fair value
Earnings are forecast to grow 14.51% per year
Earnings grew by 10.8% over the past year
Pays a reliable dividend of 1.81%
Analysts in good agreement that stock price will rise by 35.2%
RISK ANALYSIS
Significant insider selling over the past 3 months
MPW - Probably the bottom MPW has had a rough 2 years. Not only facing a fed that won't stop hiking, but various FUD and shorters that are eager to short this into the ground.
It is providing long term investors with a picture perfect setup if your time horizon is multiple years and you like collecting yield.
My notes are on the chart, but, this is probably the best buying opp in years. The yield down here is also very attractive with a 50% retrace.
Very possible it goes deeper, but there's many technical reasons for a bottom to form here.
Obviously all bets are off if we get a limit down nuke to hades from the indexes.
I'm down bad on this at the moment from April 2022, but I've been reinvesting and lowering my average entry for the last 3 months at this point.
It's a fire sale and I'm not selling here.
IOC is a long term investment idea and a portfolio stockIndian Oil Corporation Ltd. is a diversified, integrated energy major with presence in almost all the streams of oil, gas, petrochemicals and alternative energy sources. The company owns over 36,445 Fuel Stations across India. Indian Oil Corporation CMP is 92.60.
The Negative aspects of the company are declining annual net profit, declining cash from operations annual and MFs are decreasing stake. The Positive aspects of the company are low debt, zero promoter pledge and FIIs are increasing stake.
Entry after closing above 93.50. Targets in the stock will be 95.10 and 96.35. Long term targets in the stock will be 98.25 and 100. Stop loss in the stock should be maintained at closing below 88.70.
The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
Is AAPL Worth Considering for Dividend?Introduction:
As a trader, you constantly seek investment opportunities that offer promising returns. While Apple Inc. (AAPL) has long been known for its innovative products and market dominance, it's worth questioning whether it is equally attractive regarding dividend investing. In this article, we delve into the breakdown details of Apple's dividend and explore whether AAPL is worth considering for dividend-focused traders like yourself.
Call-to-Action: Worth Considering AAPL for Dividend
Considering the breakdown details of Apple's dividend, it becomes evident that AAPL is a stock worth considering for dividend-focused traders. Here's why:
1. Consistent Dividend Increases: Apple has a track record of consistently increasing its dividend payout, reflecting its commitment to rewarding shareholders.
2. Competitive Dividend Yield: With a dividend yield of , AAPL offers a competitive return compared to other dividend-paying stocks in the market.
3. Potential for Future Growth: Apple's commitment to dividend growth suggests that there is potential for further increases in the future, which could enhance your investment returns.
4. Strong Financial Position: Apple's relatively low payout ratio indicates its ability to sustain and potentially increase dividend payments in the long run, supported by its strong financial position.
In conclusion, while Apple's primary focus may be on its product innovation, the breakdown details of its dividend program make AAPL a compelling option for dividend-focused traders. By considering AAPL for dividend investing, you can benefit from consistent dividend increases, competitive dividend yield, and the company's strong financial position. So, why not explore the potential of AAPL as a dividend investment opportunity?
Disclaimer: It is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
$KO - A Year Apex ! -Looking at NYSE:KO from Pandemic we can see a triangle being formed by
Support trendline with Resistance trendline coming from ATH.
Triangle's Apex can push as far as 324 Days to play out.
Even if it takes a shorter time-span, must be noted that price would still be
trading within a Range 58$-64$.
I know Warren Buffet is not as much scared of this, as his Dividends from NYSE:KO
pay his time out like many other buys on his portfolio.
However, his wealth can not buy back any second of his time, so every blessing has
a hidden message and trial inside it.
Dividend Growth InvestingDividend Growth Investing - Building Wealth One Payout at a Time
Introduction
In a world of volatile markets and uncertain returns, dividend growth investing has emerged as a popular strategy for investors seeking steady income and long-term wealth accumulation. This approach focuses on investing in companies with a history of consistent dividend payments and a commitment to increasing those payouts over time. In this blog post, we will delve into the art of dividend growth investing and how it can be a powerful tool for building wealth, one payout at a time.
Understanding Dividend Growth Investing
Dividend growth investing involves selecting and holding shares of companies that not only pay dividends but also have a track record of regularly increasing those dividend payments. These companies typically exhibit financial stability, strong cash flows, and a commitment to rewarding shareholders with a share of their profits.
The Principles of Dividend Growth Investing
Dividend Yield: Dividend yield measures the annual dividend payment as a percentage of the stock's current price. Dividend growth investors often seek companies with reasonable dividend yields, balancing income with growth potential.
Dividend Growth Rate: The dividend growth rate measures the annual percentage increase in a company's dividend payments. Investors look for companies with a history of steadily growing dividends, signaling financial health and shareholder-friendly management.
Long-Term Horizon: Dividend growth investing is a long-term strategy. Investors aim to benefit from the compounding effect of increasing dividends over time.
Benefits of Dividend Growth Investing
Steady Income Stream: Dividend growth investing provides a reliable income stream for investors, which can be especially beneficial during market downturns.
Inflation Hedge: As companies increase their dividends over time, investors can potentially beat inflation and preserve the purchasing power of their income.
Potential for Capital Appreciation: Companies that consistently grow their dividends often attract investors, leading to potential capital appreciation in the stock price.
Key Strategies for Dividend Growth Investing
Research and Analysis: Conduct thorough research on companies' dividend histories, financials, and future growth prospects. Look for companies with sustainable dividend growth potential.
Diversification: Diversify your dividend growth portfolio across different sectors and industries to reduce risks associated with individual company performance.
Reinvestment: Consider reinvesting dividends back into the same dividend growth stocks or other investments to maximize the compounding effect.
Dividend Aristocrats: Explore companies that are part of the "Dividend Aristocrats" or similar lists, which consist of companies with a history of consistently increasing dividends for many years.
Conclusion
Dividend growth investing is a disciplined approach that rewards patient investors with a growing income stream and potential capital appreciation. By selecting companies with a commitment to increasing dividends over time and holding them for the long haul, investors can build wealth, one payout at a time.
Embrace the principles of dividend growth investing, do your due diligence, and let the power of compounding dividends work its magic on your investment journey. With the right mix of dividend growth stocks, you can create a robust and resilient portfolio that supports your financial goals for years to come.
Here's to the journey of building wealth through the steady flow of dividends, and may your investment endeavors be filled with prosperity and success!
3M Company (MMM) | Technically ready!3M Company (MMM)
3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories.
As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.
A quite good dividend stock has arrived at the destination, hopefully :)
MMM has come down from its all-time high of more than 60%. So, to buy this you need to make also a bit of work with fundamentals but technically, as said, it has arrived inside a possible buying zone.
The technical criteria are:
1. Old resistance back in 2004 to 2012, starts to act as a support level. Yes, you can and actually you have to look back as far as possible to determine the strongest areas on the chart. The world has changed but human psychologic is still the same!
2. Mentioned many times that you have to keep an eye on the round numbers. Here is also the round number $100 and it matches with other criteria.
3. Channel projection, white lines. Typically the price moves inside the channels and sometimes it helps to find a decent support level. Currently, the projection runs nicely through the optimal buying zone.
4. Equal waves (AB=CD) and the D point, which completes the pattern, staying inside the buying zone.
5. All-time Fibonacci Golden ratio 62%. Basically draw from an all-time low to an all-time high and the Golden ratio is also there to add a bit of strength to the possible reversal area.
Technically an optimal buying zone could be $80 - $102
First targets $135-$150
Good luck!
How I go about Dividends as a Trader!Q. “In your view how do you go about with dividends as a trader and as an investor? Do you buy to chase dividends when they are declared or not?
A. As a position trader (short term holder), I'm not really interested in buying companies for the dividends released.
That’s because I prefer to make money in the short term with the trades I take, according to my short term strategy and analysis.
But if I did have an investor mentality and I wanted to take advantage of buying companies for dividends, I would do a number of things.
These include:
First I would do my own thorough research and due diligence on the company's overall financial health and performance.
Second, I would look at the dividend history of each company to see more or less what I would have earned over the last couple of years.
Also, if you look at the history of the dividend, it will help you determine whether it's a reliable company to buy.
I personally don't believe it's a good idea to chase dividends with stocks.
I have also never met anyone that makes money chasing dividends in the short term.
The problem is when the dividend is released, the share price tends to drop quite significantly.
And you could end up losing more money because of the share price drop, rather than the money you gain through the dividends.
This means, you could be stuck holding onto the shares and positions for the next couple of weeks or even months, waiting for the price to recover.
Reply: *Hey Timon, thanks for comprehensive respond. It cleared my confusion as a trader when it comes to dividends.
Future of RIO, BHP and the sectorI have had a pretty large position in RIO and BHP since end of July 2022, I bought expecting the market to recover and for copper/iron demand to jump from the re-opening of China and the rest of the world. These positions have given me quite the return with their pretty high yields.
Having said this, we can see that the steam from the market's comeback has slowed down, copper, iron and ore prices in general have met some resistance and both RIO and BHP have taken a step back from their highs. I don't think there is much more gain to be made with these stocks even though their structure and their fundamentals are highly attractive.
I like to invest in one sector at a time, trying to spot which one will be the next to glow up. I think the mining and refining sector has had it's run. Therefore, I'll most probably be exiting my positions in both these companies after collecting dividends and the most probable upside from the upcoming earnings.
Extra:
I am mostly exiting my position because of what I said above, but I've slowly started to consider the rising tensions between China and the western world. Though sanctions would be an economical blunder for everyone in play, having your biggest consumers be in a cat fight is certainly not preferable for business.
PARA: bounce play at pretty big supportPARA (Paramount)
Take the weekly chart, connect the lows since 2009 and you get a nice trend line .
Price seems to react to this area so the risk reward is quiet good here for a long swing trade .
The trend line is your support.
16 is your stop.
I'm targeting 19.40 and 20.71, then we reevaluate.
For those who want to invest for the long term, PARA offers a generous dividend.
Trade safe!
Dividend king. Investment idea.I really like this stock. I'm holding hundreds since several months ago for the dividends and is a cheap stock (Yield 9.58%-$3.54 a year). This is the perfect time to buy and hold forever. Here is the strategy that I do, is very simple. Just buy at least 100 stocks, and keep buying on a drop 100 more and so on depends on your risk tolerance and cash available. Every time the stock is about to drop, write one or more cover calls depending how may are you holding.
Real case holding 100 stocks:
Dividend payout (every quarter): $3.54*100/4 = $88.5 this is what you get paid every quarter for holding 100 stocks
The stock was trading at $40 a few weeks back, that is a strong resistance and I thought it wasn't going to break it at the first attempt so I just wrote a cover call that expired in two weeks and strike price $40 for $70. The price dropped, it couldn't break the resistance, the two weeks passed and the cover call expired and I made $70 for each cover call. If I would have written a cover call that expired in a month I would have made $120. And now the stock is turning back up, I'm buying 100 more this upcoming week, I'm still holding all of them and getting my dividends paid each quarters. So just by holding 100 stocks and writing cover calls each time is about to correct for a year you can make more than $500 ($354 in dividends and the rest in cover calls approx.).
Hope it helps.
KHC short term...shortI firmly believe that this stock will go down in the next 2-3 weeks and that breakout you can see from the last 2 trading days is false. The stock has outperformed the S&P over the previous 3 weeks, but the buyers' power seems to have gone a bit. The stock needs some fresh air to regain the 200D EMA before a new retest of the resistance.
Real Estate Blue Chip SPG Simon Property“This is the paradox of public space: even if everyone knows an unpleasant fact, saying it in public changes everything. One of the first measures taken by the new Bolshevik government in 1918 was to make public the entire corpus of tsarist secret diplomacy, all the secret agreements, the secret clauses of public agreements etc. There too the target was the entire functioning of the state apparatuses of power.”
Simon Property Group seeks hyper-privatization of property, by which they can expand their capital and power network
Political outcomes will drive the future for this corporation. Midterms of 2022 will be a catalyst to the upside, but then 2024 presidential cycle holds the true power.
Altria Group (MO) bullish scenario:The technical figure Pennant can be found in the daily chart in the US company Altria Group, Inc. (MO). Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. Altria is the parent company of Philip Morris USA (producer of Marlboro cigarettes), John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., and Philip Morris Capital Corporation. Altria also maintains large minority stakes in Belgium-based brewer AB InBev, the Canadian cannabis company Cronos Group, and the e-cigarette maker Juul. The Pennant broke through the resistance line on 05/10/2022. If the price holds above this level, you can have a possible bullish price movement with a forecast for the next 5 days towards 46.63 USD. Your stop-loss order, according to experts, should be placed at 40.35 USD if you decide to enter this position.
Altria will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $1.31, up 7.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.65 billion, up 2.15% from the year-ago period.
Digging into valuation, Altria currently has a Forward P/E ratio of 8.75. Its industry sports an average Forward P/E of 8.76, so we one might conclude that Altria is trading at a discount comparatively.
It is also worth noting that MO currently has a PEG ratio of 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Tobacco industry currently had an average PEG ratio of 1.13 as of yesterday's close.
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ZIM bounceNYSE:ZIM
I see ZIM stock fallowing Baltic Dry Index with a lag. As we observe a bounce in BDI we can expect the same in ZIM stock price.
From a technical point of view the same thing.
We are now in wave 5 of an impulse wave down. which could also be done.
So from wave analysis point of view we can expect a correction up, most likely to the minor wave 4 extreme. in the region of $34.
And financially the company is rock solid.
Disclaimer: This is my analysis and does not constitute financial advice.