- - Page 5 of 16 The Finance Gourmet

Why Invest In Dividend Stocks

August 23, 2021 by Finance Gourmet

Why should I invest in dividend stocks? What Are Dividend Stocks? At the most basic level, dividend stocks are stocks that pay dividends. A dividend is a cash payment made by a company to shareholders. Dividends are set by the corporation’s board of directors. Why Invest In Dividend Stocks for Portfolios There are a lot of different reasons to invest in stocks. For many people, the purpose of investing in stocks is the capital appreciation that occurs over time. This is especially true for long-term investors constructing well diversified portfolios. Other investors invest in stocks in order to generate income. Dividend stocks pay a regular cash dividend to investors who own shares of the company’s stock. Putting together a portfolio of companies that pay dividends can generate income that investors can use for any purpose. Check out my Credit Karma review Get Paid To Invest For me, the best reason to invest in dividend stocks is to get paid while investing. Remember, for long-term goals like retirement, or college planning, a well diversified portfolio tailored to your risk tolerance is the best investing strategy. For investing beyond long-term goals, or for additional investing, dividend investing is a clever way to …

Dividend Stocks Coca Cola

August 31, 2021August 18, 2021 by Finance Gourmet

Dividend stocks are often an overlooked investment by many Main Street Americans. It isn’t hard to see why. A 3 percent yield on a $5,000 investment isn’t all that impressive, a mere $150 per year, or so. When you are thinking about turning a lifetime of 401k contributions into a retirement plan, that isn’t really the kind of number that gets your mind racing about possibilities. However, the more investable assets you actually have, the more dividend stocks start to look interesting. Consider that many dividend stocks are fairly safe from anything but the most catastrophic downturns. Stocks like McDonalds, and Coca Cola, for example. Those stocks can, and will, trade up and down, but if you don’t really plan on selling them anytime soon, they are sort of like corporate bonds where if you hold them until retirement (or just several years) chances are you will at least get all of your original investment back. What makes dividend stocks like Coca Cola so interesting in a growing portfolio is that they offer potential growth, plus the ability to outpace inflation, all while kicking off real income. Asset Allocation and Dividend Stocks As always, you shouldn’t be thinking about investing …

Procter & Gamble Stock Investment

August 8, 2021 by Finance Gourmet

Procter & Gamble, known mostly as PG, announced their new CEO and predicted solid earnings ahead even though most of the commodities used to make its wide variety of products are increasing in price. PG currently trades around $140 per share, which is the top of its V-shaped chart from the last 12 months. At this price PG offers a 2.46% annual dividend. This is way more than any of your bank accounts, and comes from a stock that really isn’t going anywhere, up or down, fast. Here is the best part. “Activist shareholder” Nelson Peltz is stepping down from the PG board after the company was able to refuse his proposals to break up the company and move its headquarters in a bid to make more money for himself and other short-term shareholders, without regard to the company’s future, or long-term shareholders. Although Peltz never prevailed on any of his major proposals, the fact that he is stepping down indicates that he is done trying to leverage his “large” position of stock into moves that might not be in the best long-term interests of the company. In all of this commotion, the company also named a new CEO. Jon …

Best High-Yield Investing Strategy

July 17, 2022July 17, 2021 by Finance Gourmet

The high-yield investing strategy is typically thought of as buying high-yield stocks. High-yield stocks are those stocks that pay a high dividend. The flaw in this strategy is that too often the focus is on yield to the exclusion of some really great investing opportunities that result in high-quality capital appreciation chances as well. Buying those stocks, however, is the best high yield investing strategy. High-yield investing is not the same thing as high-yield savings. If you are looking for information on high-yield savings accounts, try here. Smart High-Yield Investing Let’s start from the beginning. Your best investing strategy for long-term goals like retirement and college investing is a well-diversified portfolio tailored to your goals and risk tolerance. Only after your main portfolio is set up in this manner should you consider other investing strategies. So, go out, get 10% going into your 401k, put a nice hunk of change into your kids’ 529 college savings plans, and fill out your emergency savings. Only after those are taken care of should you be looking at high yield investing. But, if you are going to look at investing strategies, I love what I call smart, high yield. High-Yield with Capital Appreciation …

Is Volkswagen Stock a Buy?

May 6, 2021 by Finance Gourmet

Is Volkswagen a good stock to buy right now? Some good news from Volkswagen showing rising car sales, despite a pandemic, and nice profitability. As an added bonus, electric car sales are up, and the company gets it that electric vehicles are the future, sooner rather than later. The only ding from analysts was one analyst saying he was worried that the company was spending too much on R&D. This is small minded, short-term thinking. Block that dude, and move on. The real potential problem is the chip shortage that is affecting all card manufacturers will likely hit Volkswagen too. This means that the company won’t be able to make enough vehicles to continue increasing sales. This guidance to lower sales is the reason the stock is down. As long-term investors interested in a dividend, this is a short-term problem overly focused on by a stock analysis and stock new industry obsessed with short-term stock prices. That means its time for some tire kicking from actual investors. The upside to this that no one is talking about is that the vehicles they can sell will likely sell at higher prices due to decreased supply. That means higher profitability per unit. …

IBM Stock Spinning Off Kyndryl

October 20, 2021April 14, 2021 by Finance Gourmet

I have had a love/hate relationship with IBM for a long time. On the one hand, it’s an American staple that successfully spun off its PC business back when it could get a good deal for it. On the other hand, it insists on wasting BILLIONS of dollars on share buybacks that do nothing more than help its executives meet their targets before they ship the stock back out the front door as executive stock options. But, and this is the kicker, IBM kicks out a very sweet dividend. Even when the stock trades sideways, earning 4% in a zero-interest environment with an almost zero chance of bankruptcy, it a great investment. Check out my Stash stock back review. Now, IBM is doing another thing that I don’t really like. IBM is listening to short-term investors who don’t like steady, but non-growth income. Instead, these shareholders want stock price appreciation, even at the cost of a long-term stable business. That means the board wants price appreciation. That means the CEO only earns those millions in bonuses if the stock price goes up, even if the company prints money during the day. As a result, IBM is spinning off its managed …

Stock Buying Opportunities – New on Finance Gourmet

March 12, 2021 by Finance Gourmet

I’m going to be changing my long-standing policy on Finance Gourmet on not recommending specific investments. Stock buying opportunities require more knowledge than most would-be investors are willing to acquire, but for those willing to learn, there is gold in them thar stock markets. Instead of babying my readers, I’m going to go all out. I think we both can handle it. Investing Recommendations from Finance Gourmet For years, I’ve kept my mouth shut when I see good opportunities for a few reasons. Most people don’t properly understand how and when to invest in individual stocks. — This is still true, but this is my job. I’ll be cranking out investment articles as fast as I can to educate readers how and when buying stocks and other investments is appropriate. (I have sort-of, partially, noted here where I need future investing strategy and knowledge articles to fill in a smart investing opportunity curriculum, but there are many, many more. – I need to get my email list up and running so I can keep you notified when I get them written up. For now, keep checking back.) Until recently the costs associated with buying and selling small amounts of stock …

Uber Buys Drizly, Proves It Has No Real Value

February 17, 2021February 2, 2021 by Finance Gourmet

Uber Buys Drizly for $1.1 Billion Once upon a time, people believed that Uber had some form of value. Its app was revolutionary. Its concept of using ordinary people using their own cars to provide rides was revolutionary. But, it turns out that it wasn’t so much revolutionary, as just the first in an easily replicable line of use-your-own-car apps. Drizly Is Just GrubHub for Alcohol, Which Is Just Uber for Food Uber is paying Drizly $1.1 billion in a desperate grab for any shot at profitability and sustainability. Uber’s acquisition of Drizly proves that there is nothing special about Uber. A handful of engineers, a couple of months, and a few million of funding and anyone can copy Uber well enough. After that, the “special” comes from good old fashioned sales. Building Drizly was a lot less about building an app, and a lot more about signing up liquor stores, and then convincing people that it was worth shelling out $5 to stay on their couch instead of heading down to their favorite liquor store. This was a tough sale pre-Covid. Why pay $5 plus tip for a liquor delivery when you could just swing by your favorite liquor …

Tesla Stock Buy or Sell?

January 5, 2021 by Finance Gourmet

Wall Street gave up giving honest buy and sell rankings years ago. Everyone knows “Hold” is code for sell, without making the company you are covering too mad to use your bank for future deals. But, even that wasn’t enough, with most firms adding a slew of not-so-easy to decode terms like overweight, moderate buy, underperform, underweight. All of this is to obfuscate the actual track record of these analysts which is often abysmal. The less accountability on Wall Street, the better. Is Tesla Stock a Good Buy? Traditionally, I don’t do buy/sell on stocks. It’s a slippery area, but when folks show up in my comments and email asking over and over again for the same thing, I at least consider it. Tesla and Bitcoin I’m writing about Tesla stock today, because I wrote about Bitcoin 20,000 last week (or was it the week before? — Holidays are tricky). Bitcoin and Tesla might sound unrelated, but their performance and trajectory as late are very similar. Bitcoin is a revolutionary idea in currency that is so new there is no real way to know how it will react or behave in the long term. Recently, however, all the naysayers have …

DoorDash IPO Worse Than WeWork Disaster?

December 3, 2020 by Finance Gourmet

Yesterday in my December outlook for stocks, I alluded to the fact that the DoorDash IPO was perhaps overly optimistic about its profitability and the company’s ability to keep any semblance of that profitability in a post-pandemic world. MarketWatch Calls DoorDash IPO “Most Ridiculous” Someone over at MarketWatch isn’t waiting for investors to read between the lines with an opinion piece claiming that the DoorDash offering is the, “most ridiculous IPO of 2020.” The piece goes on to make the claim that the DoorDash IPO offering may even be worse than the WeWork IPO disaster that they previously proclaimed, the Most Ridiculous IPO of 2019. The article goes into the numbers in details, but the long and the short of it is this: DoorDash barely squeezed out a profit on $1.92 billion of revenue for the first nine months of 2020. That amount of revenue is 3x last year’s revenue due to a huge increase in the food delivery market thanks to the Covid pandemic. If you can’t squeeze out a profit in the very best possible market, how can you be profitable ever again. DoorDash can’t raise fees and expenses due to numerous competitors. In fact, its fees are …