Stock dividends are good in the long run - Copy from reddit

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Who says they are bad? They are also good in a bear market if the company maintains the dividend. The yield increases as the price drops. If you re-invest it, then you get more shares at the lower price. Your gains are even better when the market recovers.

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Which one of the following would likely distribute dividends within 10 years?
FB
AMZN
NFLX
GOOGL
TSLA

My bet is FB. Bought 6 :slight_smile: shares last Friday to hedge my bet with manch.
AMZN, NFLX and TSLA might not distribute dividends ever.
GOOGL possibly after FB.

AAPL and NVDA distribute dividends.

My guess

TSLA, NFLX and AMZN will not provide dividends.

GOOGL will soon pay dividends among the five companies listed.

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The tax details in the reddit post shows the tax reform is even more slanted towards fat cat capitalists like @hanera than I suspected. Everyone’s life goal should be to get off the W2 income treadmill and become a capitalist like @hanera. :smile:

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Pensioners used to invest heavily in high yield dividend stocks like Utility etc for income. PG&E stock dividends were CA tax exempt until recent years.
6-8% yield was common. But these stocks do not appreciate that much.

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For the same reason, I started buying TEVA now (following WB) which gives 4% dividend. In the long run, growth will also be there. This is just blind one.

Additionally, I always look our for profit margin and dividend payout ratio. If payout is less than 50% and PM and PEG are attractive, stock growth will be there.

I see elt1 point of buying XOM as this is one of the lowest point, but payout is 109%. Like he said, next 10 years XOM is good as long as the current price is the lowest.

I can’t see GOOG distributing dividends for quite a while.
We have so many areas to invest. We would buy back shares, than to invest.

GOOGL is growing every year. Once they reach a stabilized position, they will trun into dividend paying company.

PGE has too much debt and liability and suspended dividends. Utilities and REITs do poorly in a rising interest environment. SoCal Edison yields 5%. Better bet than PGE
Oil is a good inflation hedge and pays high dividends.

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Google is a badly managed company. ROE is a dismal 8.7%. It should stop all those money burning moonshots and return cash to investors.

Nope. I would leave google if moonshots get shut down.
Stop thinking short term. Be thankful google likes to spend money on things others wont bother.

Badly managed company, sure. I agree we are growing, and it makes progress very slow internally, but i am not sure what is a “well managed” company if google is a bad one :slight_smile:

Whatever come out of those moonshots? I predict google self driving cars will suck, maybe even worse than GM’s.

We shall see.
This also reminded me of FB VR division, and zucks’ dream of VR mainstream. I have been very bearish on things like that. So far, I am right every single time :slight_smile:

I was actually thinking of moving to google’s self driving division - still thinking.

Also - I would not bet on GM for this.
In an IOT world, self driving included, you need:

  1. Security: With cars getting hacked left and right chaos will ensue [Hackers Remotely Kill a Jeep on the Highway—With Me in It | WIRED]
  2. Infrastructure: Pushing constant updates to your car over time, and having infrastructure to monitor this is crucial. Google has this experience, we can handle gazillions of ad requests (i know exact number, but won’t tell). We can over-the-air update your car’s software.

GM has neither :slight_smile:

Yeah FB’s VR is a distraction. But Zuck only blew 1B on it. Considering how much of a steal he pulled off with IG and WA I can forgive some minor mistakes here and there.

Google X is run like a modern day bell lab with no breakthrough science coming out and zero sustainable businesses either. Disaster.

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Google X has more projects than that gets publicized. It’s ok. We can afford to do this.
Also think of this as part of the cost of keeping world class talent.

World class talent sitting around playing foosball doesn’t help society much. Ship them to Uber or GM instead. :smiling_imp:

Facebook’s ROE is 23.9% by the way.

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