[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


View post   

File: 425 KB, 1024x683, hedgefund.jpg [View same] [iqdb] [saucenao] [google]
93425 No.93425[DELETED]  [Reply] [Original]

>Buying stock solely for dividends
>2014

I seriously hope you guys arent doing this

>> No.93453

but no dividends means stocks are no longer a long term investment - the only way to profit is by selling

>> No.93470

>>93453
Still considered a long term investment if the price rises over the long term and then you sell.

Dividends are merely a perk

>> No.93481

>>93425
I expect my dividend investments to grow, with the market, but they're valuable primarily for their dividend.
But please, tell me about how terrible of an investor I am and how you're not an idiot.

God this board is going to shit quickly.

>> No.93494

>>93453
i'm sorry, is there some law that me and millions of other traders haven't heard about that makes it illegal to hold on to no-dividend stock for longer than one year?

>> No.93506

>>93494
what I meant was that with dividends there's an incentive to hold the stock so long as you think it'll be dependable in continuing to pay off dividends

with no dividends that incentive is gone and it's in your interest to sell as soon as you think the market has reached it's peak,

>> No.93515

>>93481
You realize that the price of the stock drops by the amount of dividend that was paid out?

Over the long term, yes you hope the stock grows and your dividend payments increase. But if you are looking for a short term payout from a dividend, its a wash.

>> No.93531

investing in no dividend stock is a bit like buying bitcoins - there's no value to the thing except the possibility that someone will want to pay more for it later

>> No.93568

>>93531
i guess im missing your point

>> No.93582

>>93515
It only drops roughly the amount of the dividend when its paid out, over the long term you end up getting the value of the dividend plus any gain in the stock. The benefit is in the [usually] quarterly payouts as income stream.

If you're going to make a thread criticizing people that trade dividend stocks in the short term solely from the value of the dividend it pays, at least word it that way. Though even then, there's quite a number of people that actually use the dividend as a trading strategy and take advantage of playing the ex-div date.
Chalk it up to babby's first dabble in the market I guess.

>>93531
No, pls go.

>> No.93583

>>93515
Are you a retard? You do realize that the stock price is mostly psychological and has nothing to do with the actual company? It's just what someone decided they want to pay for. Dividends are where the real value comes into play and an actual return is found.

It's not that dividend stocks drop by the amount of dividend that was paid out every quarter, it's that it raises to that much every quarter and the returns back the next day. This of course, still all emotion-based.

Stocks that don't give out dividends are either just growing and will pay out dividends in the future, or literal ponzi schemes.

And I don't just need pure restrict to refute the observatory of OP's post.

Dividend stocks always outperform non-dividend stocks on average, it's not even close. It's about 12% annualized returns for dividend stocks and 5% for non-dividend stocks in the last 100 years, and this is WITHOUT reinvesting your dividend payments back into the stock market.

>> No.93578

>>93531
>and also that you are buying ownership in an entity that produces something of actual value

>> No.93666

>>93578
yes and the company should give you something in return for that investment - not just a piece of paper that you can pray someone gives you more money for later

let's face it, you're not getting any rights other than voting rights, the sole value of this product comes from the hope that someone down the line will pay more for it and the prayer that you're not the one holding it when the price drops

it's like a hot potato investment where you have to pass it on quickly before it goes bad, whereas dividend stocks are a secure investment that you can hold for as long as you know that the company will keep ticking and going strong

>> No.93719

>>93583
>you realize that the stock price is mostly psychological and has nothing to do with the actual company.

kill urself

>it raises to that much every quarter and then returns back the next day

A dividend is declared in advance, and once paid out, the market price of the stock drops by about the dividend payout. If it didnt, everyone would buy the stock right before the ex date, then sell it on the ex date and make a huge profit

>> No.93718

>>93666
Basically, a ponzi scheme.

>> No.93734

>not investing in glorious insurance stocks
more book value, more BC, cmon more bv

>> No.93757

>not investing in long term, convertible corporate bonds

>> No.93758

>>93719
>2014
>What are brokerage fees
>What are taxes

>What are dividend taxes decreasing from 40% to 15% once you have owned the stock for more than 366 days.

Your panties in a bunch because you lost money in the stock market?

>> No.93796

>>93719
And by the way, a shitton of people do do this.

But like I mentioned, most people, and most investors, are idiots. Just look at Facebook's market cap of over 170 billion. (Compared to McDonalds with 3.4% dividends at 95 billion make 10x more revenue per year).

The average investor is brainwashed into trying for incredibly rare and risky increases while the smart investor goes long term and enjoy making a safe 5-15% per year.

>> No.93790

>>93758
you can still make a huge profit u clown

>> No.93802

>>93470
If dividends are merely a perk, then why would anyone buy a stock?

>Oh I got this stock that allows you to buy into my company?
>That sounds cool, I might buy a stock or two.
>yeah, but nobody cares about dividends, you only want to resell them to people
>But who would I resell them to if nobody is interested in them?
>To people who buy them to sell to other people
>What?

>> No.93850

>>93802
Because they are smart and looking at the long term.

Hopefully you arent buying stock in a business that you think is going to fail....

Dividends are nice when paid out, they keep investors happy and essentially keep the price of the stock going up (Because if a business that isnt doing well isnt going to be paying out dividends)

but what the fuck do i know.

>> No.93883

I see a lot of ignorant people in here. There are many different reasons why one would hold a dividend stock:

1. To profit, via potential increase in stock prices.
2. To profit, from fat dividend yields that can sometimes be more than bonds.
3. To shield their portfolio against volatility, since most dividend paying stocks tend to be larger, more stable companies that aren't in a growth phase.
4. A combination of the 3 above.

So, if you honestly think there is no point in holding dividend stocks, you are wrong, and need to think again.

>> No.93910

>>93883
I dont think anyone is disagreeing that dividends are good.

But buying a stock only because you want the quarterly payout then selling it after is retarded. You will generally break even (and probably be in the hole after fees)

>> No.93914

Guys, guys, guys. Buy stocks for dividend when you are already rich.
Otherwise speculate, invest or work. Or all three.

>> No.93946

>>93910
Yea that is true.

I most people don't actually own dividend stocks for that reason though, maybe the less informed investors out there do that, but not people who actually know what they are doing.

>> No.93947

>>93910
Except dividend plays work more often than not.

>lol fees
Volume negates fees.

>> No.93977

>>93946
Edit: * I don't think most people

>> No.93992

>>93850
What do you get out of a stock in the long term other than a dividend?

Like imagine this. It's the year 2000 BCE, you have your rock store. You decide to make this new INNOVATUVE HUEHUE idea and start selling parts of your company. The only perk of buying a stock and a part of a company is the dividend itself. However, as a company grows, the dividend grows and people offer to buy your stock. Like, I can't imagine any other way for stocks to pick up value other than the first dividends.

>> No.94000

>>93583
>Dividend stocks always outperform non-dividend stocks on average

>> No.94050
File: 26 KB, 721x408, dividends.jpg [View same] [iqdb] [saucenao] [google]
94050

dividends increase over time.

>> No.94065

>>93992
Because people are looking at the value of the stock long term vs what they paid for it when the price was lower.

Its all expectations. Dividends definitely let investors know (for the most part) "hey the company is doing well, hence our dividend pay out". And yes, you hope for increased dividends over time.

But if you can buy a google stock at $100 when they are starting out and you think its gonna take off...boom $100 turns in to $1200. Thats the real return you want in a stock.

>> No.94083

>>94050
not always. A company could pay out a dividend on a common stock one quarter, then the board could vote no dividends the next

>> No.94089

>>93992
I don't really understand what you're saying. But one reason to buy a stock for the long term, other than a dividend, is *the potential to profit from increase in share prices*.

>> No.94091

>>94065
In retrospect, it's easy to see how that would have been a good idea. But the number of examples of prospective stocks decreasing to 0 is far more than stocks showing such tremendous increases. Unless you're personally involved in a company or are just that faithful in the company's product and management, you're basically just gambling at a net loss.

>> No.94095

>>93425
>2014
>not investing in dogecoin

I seriously hope you guys arent doing this

>> No.94113

>>93914
So suddenly dividend stocks aren't investments. Good to know.
Also apparently dividend stocks are bad for the non-wealthy. Also good to know.
Thanks for your great input anon! Now get the fuck out.

>>93992
If you're honestly having this hard of a time understanding this then you need to go read up on stocks, you're not going to get enough info from here.
Owning a stock is a tool to grow your money, as the value and size of the company increase, so does your investment in it. If the company were to be sold or taken private, then you would get a chunk of the sale value respective to the number of shares you own.

>> No.94112

>>94091
welcome to the stock market, kiddo.

>> No.94118

>>93425
>buying a stock that gives dividends at all, ever
shiggy diggy I can't even hold all these tomatoes

>> No.94125

>>94095
>>94118
can you faggots go shit up your own threads? that'd be great.

>> No.94131

>>93506
>with no dividends that incentive is gone and it's in your interest to sell as soon as you think the market has reached it's peak,
Derp derp do you think dividends are just free magical money? You are aware that the dividend is coming out of the stock's value right? Instead of getting a quarterly payout of 1% of your stock's worth your stock could be going up in value an extra 5-10%.

>> No.94134

>>94113
A great example would be Jim Bean (yes, the bourbon).

It got bought out by some Jap company for an absurd amount of money.

Some guy owning about 12% of the outstanding shares made something like $400k on the deal alone.

>> No.94151

>>94113
You are stupid. What I meant is that buying those stocks is okay when you have enough capital that the dividend means something instead of getting 200 dollars annualy. Buying that kind of stock with low capital is okay too for the purpose of SPECULATING and daytrading not for the dividend. And if you do not agree you got to go back to middle school.

>> No.94164

>>93666
>dividend stocks are a secure investment
hahahahahaha oh fuck wow I'm glad moot made this board. I don't think I've ever laughed so hard on 4chan than reading about how anons think the stock market works

>> No.94181

>>94151
No anon, you are stupid. If you can't comprehend something as simple as compounding and DRIPS and how they can make you a shitload of money in the long term regardless of your initial investment amount then you don't belong anywhere near here.
Not everyone needs instant gratification.

>> No.94187

>>94164
Relatively. They are vastly more secure than the marijuana penny stocks that a teenager like you invests in.

>> No.94189

>>94000

my sides

>> No.94194

What are your guys hot picks for a good dividend stock?

Right now I'm torn between AT&T, Pepsi, and Mattel.

>> No.94202

>>93796
>the smart investor goes long term and enjoy making a safe 5-15% per year.
This man is a genius! Making smaller amounts of money guarantees that your investments are safe! It makes total sense now!

>> No.94241

Dividends only give you your own money back that you have to pay taxes on.

Share price $100
Company has $5 of cash on balance sheet

Situation A:

You buy a share at $100, company announces a dividend that day, payable tomorrow. Next day you have a $95 share and $5 of cash you now have to pay income tax on. Assuming 25% tax rate you now have $98.75.

Situation B:

You buy shares at $100. No dividend. You still have $100.

>> No.94244

>>94194

Liquidate all your possessions and bet it all on Google.

>> No.94294

>>94202
The unintelligent investor speculates and gambles his money away. Sure, he can win a few times, but more often than not, he will lose.

>> No.94326
File: 74 KB, 600x424, 6810_a.jpg [View same] [iqdb] [saucenao] [google]
94326

>>94202

keep betting on mirages, I'll stick to actual value

>> No.94341
File: 56 KB, 620x387, PF-dividends-reinv_2674069b.jpg [View same] [iqdb] [saucenao] [google]
94341

>>94241
So wrong it hurts. Share prices usually recover after the dividend. And you don't pay taxes until you actually realize your gains (pull out). Smart investors know this, and will usually reinvest dividends in the stock, hold for the long run and profit off the gains.

>> No.94344

>>94241
Here's shocking idea which I'm 100% sure you wont follow: Don't post about shit you completely don't understand.
You're using a single ex-div date and ignoring any growth in the company to try to illustrate a point. You're also assuming the person is buying right before the dividend is paid out.
Hell, you can't even grasp the simple, basic fact that dividends aren't even taxed like normal income in the first place.

>> No.94349

>>94181
muh 2000 dollars over 10 years plan.

Seriously, just fuck off.

That is spare change in the grand scheme of things. Dividends are only a solid investion if the dividend payed out to you are of substantial value. Otherwise you are just spending scarce time with scarce money and not really making money. You can't get more wealthy from dividens when you are still at the ground.

My advice is that Dividends are a nice little extra when speculating, but are a real investion when your invested capital is of a high level too.

>> No.94361

what are some good dividend stocks? google isnt really giving me what i want.

is it good to buy a stock before or after the dividend?

how can you determine when a company is going to pay dividends?

is it better to get the dividend as shares or $?

>> No.94377

>>94294
I don't think that's "unintelligent". It's like buying a lottery ticket each month, you lose a little ammount but if the extraordinary happens and you win, you win a lot.

Except that with stock investments, even if the company you are investing in is not a safe bet, you have more chances of winning than in a lottery.

>> No.94396

>>94244
loll

bought some a couple weeks ago at 1144, sold it this week at 1200. feelsgoodman.

>> No.94414

>>94349
Spare change? Wrong. Over ten years, the price return of the stock will increase in that time as well, probably not as others but enough to make a good profit off of. If you reinvest the dividends, it would make those gains even bigger. See: >>94341

>> No.94451

>>94341

You pay taxes the year you get them dummy. Just because you reinvest them doesn't mean you magically don't pay taxes. And I guarantee that chart does not include the effects of taxes.

>>94344

>Hell, you can't even grasp the simple, basic fact that dividends aren't even taxed like normal income in the first place.

They're still taxed. That doesn't nullify my argument at all.

>You're using a single ex-div date and ignoring any growth in the company to try to illustrate a point.

Ceteris paribus the guy who owns the stock that doesn't pay a divy will end up with more money. You're convoluting the growth of the corporation with a dividend payment. Two different things.

> You're also assuming the person is buying right before the dividend is paid out.

Doesn't matter. If you buy the stock before the cash is disbursed you're only getting your money back but you pay taxes on it.

>> No.94460

>>94396
congrats. What did you do with your $56?

>> No.94468

>>94241
Not exactly how it works. The expected dividend is baked into the current price. If a $5 dividend is expected, and the price per share is $100, it's actually being valued at $95 by the market.

>> No.94476

>>94377
That is true. But winning consistently in the stock market is impossible. If you're confident and think you're better than the pros at picking stocks, timing markets, then go ahead and try your luck and make your billions. Nobody is stopping you.

>> No.94488

>>94414
First of all, if you don't, know how, to use, commas properly you shouldn't fucking use them; using comma splices improperly makes you look like a fucking moron.
Secondly, hurp derp 10 years. Have fun scraping your 10 year plan off the bottom of the next fucking crash.

>> No.94493

>>94349
boohoo! He's not telling me something that's going to make me rich overnight! I don't like him!!
You make it painfully obvious that you don't know what you're talking about with as hard as you're trying to push speculation and shitting on long term investment. And also >investion

>>94361
>what are some good dividend stocks?...
Good dividend stocks, as a general rule, are usually companies in services sectors like Energy, Gas, or Communications. You'll have to do research on specific companies to pick which ones are worth your money.
Keep in mind that a common tactic used by companies is to offer a higher dividend to make them seem more attractive to investors. A company that has a dividend considerably higher than the sector average are often a sign to stay away.
>buy a stock before or after...
You can buy the stock whenever, when you purchase a stock to reap the rewards of the dividend you're holding long term so missing a single dividend payment isn't going to be a big deal. If you want an immediate return then but right before, if you want a little dip in stock price for a slightly better position then buy right after. But really just buy whenever.
>how can you determine when...
You can't really determine with 100% certainty that a company will pay a dividend, but you can look at what the company has done in the past. A company like Coca-Cola has been paying dividends every quarter without fail for decades, so it's a pretty safe bet that this will continue. Another trend you want to look for is a company that gradually increases the size of their dividend.
>is it better to get the dividend...
You can only get the dividend as $, but what you can do is enroll it in a DRIP (Dividend Reinvestment Plan) which uses your dividend to buy more of the stock. A DRIP makes sense is you're trying to grow your portfolio, getting the payout makes sense if you're using dividends to supplement your income.

*quotes shortened to fit post limit

>> No.94498

>>94460
>10 shares
i bought cvx, xom, wmt, and mcd. no plans to ever sell.

>> No.94509

>>94488
>something about commas
This is what it has come down to when you run out of intelligent arguments. That's 4chan for you.

>> No.94511

>>94476
>But winning consistently in the stock market is impossible.
What the fuck are you smoking? It's impossible for someone like you, sure. But that's because you lack the necessary intelligence and balls. There are people who make a living doing what you say is impossible.

>> No.94524
File: 370 KB, 500x484, 1392592606760.png [View same] [iqdb] [saucenao] [google]
94524

>>93758
>>What are dividend taxes decreasing from 40% to 15% once you have owned the stock for more than 366 days.
Is that true?
Is that true in Canada?

>> No.94533

I have 35k.

What do I invest into?

>> No.94534

>>94509
>implying pointing out your inability to express yourself coherently isn't a perfect indicator of your overall intelligence
>implying you're not resorting to ad hominem yourself (you stupid nigger)
>implying you're not the one who ran out of intelligent arguments

>> No.94541

>>94533
invest in 4chan
moot needs more servers to house the idiocy of this board

>> No.94543

>>94511
Most hedge funds underperform the market (http://www.barclayhedge.com/research/indices/ghs/Hedge_Fund_Index.html).). Guess who works at hedge funds? Smart, well capitalized, rich motherfuckers with inside connections.

But you're smarter and have big ass balls so you can do better than them. So explain to me why you aren't a billionaire yet?

>> No.94553

>>94488
so you're one of the retards that panics and pulls all of their cash out at the bottom of the market. Explains a lot, though I shouldn't be surprised that you're an impatient dumbass considering how hard you're pushing the quick buck and discounting any long term investment.

You know how much money I lost in the last crash? None, because I didn't pull it out like a retard. In fact, I put more in mid-2009. Buy when there's blood on the streets, etc.

Oh and just to clarify, I'm not against speculation. I trade options and fx, but discounting long term investments is stupid and childish and will never get you anywhere. If the day ever comes where I can't keep making profits from speculation I know I'm still covered for life with the amount of money I've put into various other instruments.

>> No.94559

>>94534
Why are you on this board right now? Go make your billions. You're obviously are smarter and more ballsy than everybody else.

>> No.94576
File: 7 KB, 320x180, big quantum dongs.jpg [View same] [iqdb] [saucenao] [google]
94576

>>94543
Quantum Physics

>> No.94586

HOW DO I INVEST FOR MY RETIREMENT?

WHAT DO I INVEST IN?

HOLY SHIT HELP ME PLS

>> No.94587

>>94488
Let me guess. You're short TWTR, short FB, long TSLA, long marijuana penny stocks, day trade AMD, NVIDIA, INTC, and are currently in a pump and dump scheme involving the latest cryptocoin.

Shit, you're a millionaire right?

>> No.94619

>>94587
>not day trading INTC

get on mr. bones wild ride while you still can

>> No.94675

>>94050
>$3.25 per share, per quarter
>literally less than the price of a gallon of milk

Why would that dividend even be considered in investment

>> No.94689

>>94675
You're gonna go far kid. Just hold on to that mentality.

>> No.94741

>>94689
But unless you're playing with, at a minimum, thousands of shares, you're just wasting time. You'd need tens or hundreds of thousands of dollars for that. Why the numbers are so big?

>> No.94757

>>94741
>Tens
>A lot
wut

>> No.94777

>>93718

Is blatant misuse of the term 'ponzi scheme' the first /biz/ meme?

>> No.94775

>>94741
Most dividend stocks pay around 4%, but if you keep reinvesting the 4% it eventually will double, and then triple. Plus you are getting the stock gains as the market rises.

>> No.94780

>>94619
not buying amd and selling at 3:45 before earnings and take up a short position at 3:50

>> No.94796

>>94777
>Is blatant misuse of the term 'ponzi scheme' the first /biz/ meme?

No fucking way. My photoshopped Vanguard balance was the first /biz/ meme. I'm not giving up my glory.

>> No.94805
File: 23 KB, 305x569, 4 and a half years.png [View same] [iqdb] [saucenao] [google]
94805

>>94757
I wish /biz/ had spoilers

And yeah, a lot. I'm in college now, so even a couple grand is a lot. But I do understand that once you have a career and have been saving/investing for a few years, ten thousand dollars isn't more than a month's pay.

>>94775
>eventually double
Nigga that take 4 and a half years. Is it 'sposed ta take that long?

>> No.94811

>>94796
You mean even the first balance wasn't real?

>> No.94819

>>94805
I got good news and bad news.

Good news: The fact that you understand compound interest and Excel means you're better off investing than 90% of people.

Bad news: The other 10% will fucking rape you, every single day, because you are woefully undereducated.

>> No.94823

>>94741

>>94805
yes, holding dividend stocks is a long term play.

>> No.94851

>>94805
You're assuming you get the 4% per quarter. Dividends are paid quarterly, but usually stated at their annual rate. So if a stock is paying 4% you would get 1% per quarter. You're assuming a stock is paying 16%, which is unheard of outside of junk stocks that are pretty close to tanking.

It usually takes a lot longer for your investment to double. Like 9 or 10 years.

>> No.94852
File: 44 KB, 750x484, Clipboard01.jpg [View same] [iqdb] [saucenao] [google]
94852

>>94811

First one was real. Here's today's balances just for you! Markets wet up today ... I'm richer than before.

>> No.94843

>>93425
>buying stocks at all

Two types of traders in this world. Those who understand economic commodity balance, and those who blow their money because some guy in a suit on the TV showed them a big green arrow.

>> No.94853

>>94819
eh, getting taken by other people is a lot less of a factor if you aren't flipping the stocks every other month

>> No.94863

>>94843
3edgy5me bro, those big bad stocks are gonna get me!

>> No.94861

>>94843
what do you invest in if not stocks let me be like you

>> No.94864

>>94852
Where did you get the money to start?

>> No.94865

>>94796

pls post it again

>> No.94873

>>94780
fuck amd

>> No.94874

>>94851
Jesus fuck, 4% *annually*?

Why bother? That big nigga, Warmen Buffet or whatever, he gets like 20% or something.

>> No.94886

>>94864
None of your fucking business.

>> No.94893

>>94780
The key is to invest in convertible bonds, when the market common stock rises above parity you short the stock then convert your bond

>> No.94895

>>94861
he's being an idiot, stocks are fine. But there's still any number of investments you can make...
bonds, CDs, real estate, municipal bonds, precious metals, etc.

>>94874
that 4% is just from dividends. The stock, ideally, would also be increasing in value.
>buy stock X with a 4% div
>stock increases 12% over the next year
total return at the end of the year is 16% minus tax

>> No.94899

>>94863
>Where did you get the money to start?

I worked my ass off. Lived well-below my means. Didn't engage in conspicuous spending. Invested soundly and NEVER SELL ANYTHING.

>> No.94900

>>94863
>edgy

It's called not being a fucking idiot.

Stocks are for investors, not traders.

>> No.94929

>>94874
Well if you are smart, lucky, and want to spend your entire life researching the market you can get 20% too.

But if you have money sitting around doing nothing and want to get slightly more money for no effort, just be happy with 4%. Also, stock price will increase as well so you will probably make more than 4%. Don't most stocks average like 9%?

>> No.94917

>>94900
and that's what we're talking about here shitnuts. Jesus, keep up.

>> No.94918

>>94874
>Warmen Buffet

wat

>> No.94938

>>94874
>Warmen Buffet
Shit man, I think that nigga owns a restaurant near me. I dont kno how he make $$$ tho, they lety u pay once and fill ur plate as many times as u want. they don even serch ur bags. My hunni fills her purse wit chickemn wings n we good 4 a week

>> No.94952

>>94929
>But if you have money sitting around doing nothing and want to get slightly more money for no effort, just be happy with 4%.
>risk losing money for a chance to gain 4%
Sure thing.

>> No.94953

>>94900
>stocks are for investors, not traders

cmon, you are smarter than this

>> No.94972

>>94952
>>But if you have money sitting around doing nothing and want to get slightly more money for no effort, just be happy with 4%.
>>risk losing money for a chance to gain 4%
>Sure thing.

Literally, WTF are you talking about. You are the dumbest person on this board at the present moment.

>>94953

He's right, dumbass.

>> No.94988

>>94952
Companies like Pepsi, Coke, GE, Chevron, J&J aren't going anywhere. If you plan to hold for a long time you pretty much can't lose. Sure the market could tank tomorrow morning and you will lose 50%, but ten years from now odds are it will be higher than what you bought it for because of company growth and inflation.

>> No.95010

>>94929
>Well if you are smart, lucky, and want to spend your entire life researching the market you can get 20% too.
>entire life researching the market
>20%
Maybe if you're stupid.
If you're smart and spend every day trading you're going to make far more than that without even being lucky.
I think the thing that is confusing you is that you're not that smart, nor are most people who trade stocks.

>> No.95019

>>94972
>what is daytrading

u fucktard, of course traders utilize stock.

go die.

>> No.95043

>>95019
>daytrading

My sides. My god, you are a cautionary tale if I ever met one.

Go read the peer-reviewed studies on day-trading, stock picking, and frequent trading. Then come back and thank me for saving what remains of your pitiful savings.

>> No.95061
File: 6 KB, 191x377, 17 god damn years.png [View same] [iqdb] [saucenao] [google]
95061

>>94851
>9 or 10 years

Bitch try like 17

>> No.95072

>>95043
you are talking theoretically, it is best to invest in stock, not just trade it.

But stock is traded short term all the fucking time you douche nugget

>> No.95077

>>94988
>Pepsi, Coke, GE, Chevron, J&J aren't going anywhere.
toobigtofail.reg
[-HKEY_CURRENT_USER\IT\Nortel]
[-HKEY_CURRENT_USER\Airlines\DELTA]
[-HKEY_CURRENT_USER\Airlines\United Airlines]
[-HKEY_CURRENT_USER\FINANCE\New Century Financial]
[-HKEY_CURRENT_USER\ENERGY\Pacific Gas & Electric]
[-HKEY_CURRENT_USER\ENERGY\Enron]
[-HKEY_CURRENT_USER\AUTOMOTIVE\Chrysler]
etc etc I can't be bothered also you probably don't even know how registry edit works faggot.

>> No.95104

>>95072
>But stock is traded short term all the fucking time you douche nugget

Not profitably, to the trader. But your broker thanks you for lining his pockets with your transaction fees.

Seriously kid, go read about the efficient market theory and look up the studies by Terrance Odean at U.C. Berkeley. That is, if you can read.

>> No.95125

>>95104
you are right, daytraders know nothing and are just taking capital loses left and right.

>> No.95117

Are dividends subject to capital gains or income tax?

>> No.95142

My god I honestly can't believe how hard it is for some of the people in here to grasp this...
How about an example where dividends are useful:
>I have $2mil
>I put it into dividend stocks and average 4% from the dividends alone
>This means my initial investment pays me $80k/yr, $68k with 15%
>Initial investment increases along with market and beats inflation

Now ideally, you would be more diversified then just dividend stocks (CDs, bonds, etc.), but it's an example.

Hopefully this makes it more clear, but I'm not holding my breath since most of you cant seem to even keep investing vs. daytrading straight.

>> No.95139

>>93425
what a dviend

>> No.95163

>>95125

Over 80% of them fail to cover their transactions costs in a given period of time. They (and you) also suffer from a demonstrated tenancy to overstate their gains and understate their losses and fees.

You are not special snowflake, junior. The markets will gobble you and shit you out if you day trade.

>> No.95173

I think op is being silly by saying this as a number of companies have been paying consistent dividends for years and are some of the safest places to put your money, energy/gas being among those. It's not exactly the most efficient way to gain large amounts of money in a quick time but its reliable returns yearly. Never write off dividend investing.

>> No.95193

>>95142
We understand how dividends work, thank you.

Does everyone hate you IRL?

>> No.95217

Would it be smart to short a company right after it pays out a dividend, then when all the investors have reinvested it through DRIP buy the short shares, then sell for maximum profit as the price inflates and goes higher with the cash from some new investors?

>> No.95271

>>95193
yes, everyone clearly understands how dividends work in this thread, that's why they've been spewing shit and talking about daytrading for the past 100 posts.
and yes, a lot of people hate me because I don't put up with stupidity and set shit straight IRL too. Now ask me if that bothers me.

>> No.95285

>>95217
Yes. Your neat little trick that you half-assedly devised over the last ten minutes after going through this thread is guaranteed to be successful.

>> No.95324

>>95271
Does it bother you?

Cause you seem rather bothered

>> No.95331

>>94886
liar

>> No.95357

>>95285
>sarcasm over the Internet where I can't tell if it's sarcasm or not

You give me anxiety.

>> No.95686

>>95104
>Not profitably, to the trader.
Oh god, I feel so stupid.
I thought that when I bought 2 million shares of that volatile penny stock at open and sold it 40 minutes later for 30% more I actually made money. It turns out that only my stock broker made money! I wish you told me this sooner!

fuck, why did I ever try day trading a volatile stock? How could I be so stupid? Am I going to have to send that money I thought I made back to my broker? Are you sure it's his?

>> No.95703

>>95163
>They (and you) also suffer from a demonstrated tenancy to overstate their gains and understate their losses and fees.
>I lose money when day trading
>everyone else must too
>they're just lying jews

>> No.95715

>>95357
It's ok man, just breathe deep.

>>95285
STOP TRIGGERING HIM YOU FUCK.

>> No.95748

>>95686
u rekt him bro

>> No.95787

>>95686
so that's what this thread is about - douche bags trying to get people to throw their money away on penny stocks,

no dividends indeed

>> No.95818

>>95715
>triggering
>>>/tumblr/

>> No.95815

>>95686
>forgets to mention the possibility that the volatile penny stock could drop 30% percent in 40 minutes too

>> No.95852

Hahahaha /biz/ is really funny already because it seems to have this horribly inflated sense of ego, much worse off than /pol/. This shit is great, all the anger

>> No.95858

>>93425
I'm an economics student and I want to get into the stock market... any tips?

>> No.95859

Reminder: "The success rate for day traders is estimated to be around only 10%" - Investopedia

Good luck out there gambling your fast food wages on those penny stocks day traders.

>> No.95893

>>95859
reminder: the success rate for businesses is 10%

Good luck out there m8

>> No.95920

>>95858
>spend money on stocks
>lose money on stocks
>get depressed
>write a book about it
>make money

>> No.95940

>>95852
i know rite, i remember when /biz/ was good not filled with all these fags rite?

>> No.95943
File: 20 KB, 700x466, sc.png [View same] [iqdb] [saucenao] [google]
95943

>>95858
>DUST, NUGT, DGAZ, UGAZ

Road to riches right here. Volatility doesn't mean shit if you're smart and got dem ballz like me :DDD :^DD.

>> No.95951

>>95943
> :DDD
> :^DD
I'm unsure about your tip.

>> No.95972

>>95940
fucking /biz/ newfags.

i remember the good old days when we'd post memes about how much $$$ we were making on pork belly futures

>> No.95978

>>95951
Sure you can lose 80% of your money over 15 days day trading these, but you can also make way more than that too! You're guaranteed success if you're smart and got dem giganto ballz like me. Trust me on this Anon.

:D :D :D

>> No.95997

Things that should have a minimum IQ requirement but do not:

1. Having a kid.
2. Voting.
3. Buying or selling 3x ETFs.

>> No.96049

>>95997
> implying im not smart enough to trade 12x inversed oat future default swaps through my third party etrade app

>> No.96070
File: 107 KB, 1022x768, 1392959437467.jpg [View same] [iqdb] [saucenao] [google]
96070

>>96049

>> No.96085

>>96049

implying there is a credit default instrument for oat futures. God you kids are dumber by the day

>> No.96102

I don't know why penny stocks even exist, why do losers go public before they're ready - that raises questions about a company right off the bat

>> No.96125
File: 329 KB, 1200x800, 1380598805218.jpg [View same] [iqdb] [saucenao] [google]
96125

>>96085
> implying theres a credit default instrument for sarcasm/ jokes


> 2013

>> No.96227
File: 1.51 MB, 200x149, 1363752367111.gif [View same] [iqdb] [saucenao] [google]
96227

>>93992
You do realize there are tons of companies that dont pay out dividends and random people buy them for the prospect of making money in the long run.

Dividends are just a perk to add to the valuation of the stock. I hope you are trolling because this is some of the dumbest shit I have ever read.

>> No.96438

>>94194

I don't think dividend stocks are 'hot' picks, but steady Fredies. If you think oil will still be expensive in 20 years, look at XOM. A better value might be RDS-B (or -A depending on your part of the world)

>> No.96459

>>93425
You guys are all fucking idiots.

Dividends are neither good nor bad. Price of a stock is expectation of future income streams.

Of that income, it either gets distributed to shareholders or reinvested or some combination of the two.

But dividends are neither good nor bad per se.

Fuckin retards. I suggest you do the Level 1 CFA like I did.

>> No.96498

>>93425
>Buying stock just to sell it later
It's like you're not even trying to gain control of a company

>> No.96501

>>95117

Capital gains.

In the future probably somewhere between capital gains and income.

>> No.96541

>>94326
This image needs to be spammed constantly on this board. I request a higher res version for when we get a good sticky.

>> No.96593

>>94988
It's absolutely pointless to account for inflation, because any goods or services you intend to buy with your money 10 years from now have also been affected by inflation. The real question is growth and value growth that OUTPACES inflation.

>> No.96692

>>94524
In Australia if you make capital gain on the market in less than a 12 month period you're taxed 30%. After one year you only pay 15% I believe.

>> No.97799

Anyone has the symbol for a stock with a flat price (except while a market crisis) with a monthly 1% dividend? Something with P or so, I forgot it.


Also, FUCK YOU moot/4chan for banning me...

>> No.97819

This was the reason: Posting banned url

I just wrote the name of the website without the www. or .com and I didn't advertised it in any way.

Here's something for you stupid shitheads:

URL, also known as web address
An example of a typical URL would be "http://en.example.org/wiki/Main_Page"

>> No.97824

>>97799
>>97819

>> No.97865

>>93425
>Coca-Cola is a poor investment

Shiggy diggy

>> No.97911
File: 77 KB, 974x361, 1392986605675.png [View same] [iqdb] [saucenao] [google]
97911

>>97799
>1% monthly dividend
>12% annual dividend yield
>From a stable stock

MUH SIDES. Typically the bigger the dividend you're looking for, the bigger the risk you're going to have to take. There's only a handful of stocks that pay numbers like that out but most of them are from companies that are dead/nearly dying. The total return would be crap because when you account for the change in their share price would wipe out any gains you would get from their dividends.

You need to look into High Yield Bonds if you want a big yield, low risk, monthly distributions. The most popular one is JNK – a junk bond fund that is super consistent and liquid in case you need to pull out.

(I'm new to this too, so smarter people out there correct me if I'm extra wrong)

>> No.97941

>>95010
Are you saying that day trading outperforms swing/long?

>> No.97985

>>97911
You're pretty much correct, although junk bonds also carry risk. Personally, I like SDIV.

http://www.globalxfunds.com/SDIV

Monthly distributions, global basket of 100 companies, robust selection model to ensure income stability and growth.

>> No.97992

>>97911
>I'm new to this too

Why should I listen to you?

I just want the symbol for watching in case of a bigger market correction.

>> No.98004

>>97941
He's saying trading is mostly based on luck, and he's right.

>> No.98057

>>94874
Warren Buffet does not do things the same as you, get gets tons of shares for a quarter of the price.
He literally is not on the same playing field, do not compare yourself to him.

As for my throw in, I <3 div stocks.

>> No.98066

>>97911
>corporate bonds overvalued as fuck due to investors too scared to put money in stock

Enjoy your crash.

>> No.98119

>>97799

REITS (real estate investment trusts) have very high dividend payouts because all of their profits must be paid out ?quarterly?.

AGNC has a payout of 11.8%. Not a recommendation, I'm basically flat when considering the payout. I keep it in my portfolio out of interest. It works by leveraged buying of MBS.

>> No.98115
File: 63 KB, 798x541, jnk-agg.png [View same] [iqdb] [saucenao] [google]
98115

>>97985
>You're pretty much correct, although junk bonds also carry risk
This is true. Junk bonds are inherently more risky than regular bonds. Regular bonds perform well during market corrections while junk one's usually do not.

Pic is JNK, AGG through the 08 crash.

>> No.98141

>>98066

Junk bonds (if you are in a fund) have the same problem, no? Besides the payout is absurdly low considering the risks.

>> No.98178
File: 35 KB, 658x309, 1392989396772.png [View same] [iqdb] [saucenao] [google]
98178

>>98119
>AGNC
Do you know why it dropped 31.7% in share price over 1 year?

>> No.98223

>>98178

Its related (I think) to the fed's interest rate policy. AGNC depends on the spread of long term to short term interest rates. They borrow money at low interest rated and buy packages of mortgages. Also the fed entered the MBS market itself to soak up some of those securities making it hard for them to get a good deal.

At that time the value of their holdings was written down (and their stock price tanked in series with that).

It has been inching back up now and the fed seems to want to keep interest rates low, and the fed is tapering their asset purchases so I'm holding on to it.

I knew I was over my head when I purchased it (swimming with sharks), but I hang on to it for edjumication.

>> No.98235

>>98223

oh yeah. At its peak it was _over_ its book value by several dollars, which makes little sense. People must have been buying it then purely on its return, rather than understanding what it does.

>> No.98237
File: 15 KB, 708x384, rem.png [View same] [iqdb] [saucenao] [google]
98237

>>98223
>Its related (I think) to the fed's interest rate policy. AGNC depends on the spread of long term to short term interest rates.
Correct.

If you guys are interested in mREITs, you can buy $REM which is an ETF that holds many of them, including $NLY, $AGNC, etc.

>> No.98254

>>98237
ty.

>> No.98767

>>94675
are you shitting me $3.25 per share as a long term investment thats fucking great

>> No.98799

Where I live I get taxed up the ass for profits made with buying and selling stocks while dividends are also taxed but with a smaller percentage.

>> No.98906

>>93425
no im in it for quick shekels off of ERBB today

can't tell where it's going yet