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Buy-and-Hold Dividend Stocks
#1
Long-term investors can take full advantage of dividend stocks by harnessing the power of compounding interest. The best way to do that is to sign up for a dividend reinvestment plan (DRIP) and direct stock purchase plan (DSPP), should the company offer it. This allows you to automatically reinvest your dividends. You can also purchase shares, fractional or whole, without the need of having to use a broker. Buy-and-hold investing might not impress your friends, but it can be lucrative.

In this thread I want to know about the long term buy and hold stocks that everyone is buying.
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#2
I have a few DRIPS set up through DSPP.

I have JnJ, Intel, Exxon, and my latest is Reynolds American

Oh yeah, and Verizon. But my timing was shit with that one and may have to sell.
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#3
(11-23-2016, 09:32 PM)StingingNettle Wrote: I have a few DRIPS set up through DSPP.  

I have JnJ, Intel, Exxon, and my latest is Reynolds American

Oh yeah, and Verizon.  But my timing was shit with that one and may have to sell.


Sounds good, - especially JnJ (which I don't own - yet)

I've a few thru www.computershare.com  and www.amstock.com

a few years ago they started charging, liked em better when they were free duh
Stock accounts used to do it free and easy too, but now they have you enroll in a 3rd party who charges
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#4
(11-23-2016, 10:50 PM)DaveGillie Wrote:
(11-23-2016, 09:32 PM)StingingNettle Wrote: I have a few DRIPS set up through DSPP.  

I have JnJ, Intel, Exxon, and my latest is Reynolds American

Oh yeah, and Verizon.  But my timing was shit with that one and may have to sell.


Sounds good, - especially JnJ (which I don't own - yet)

I've a few thru www.computershare.com  and www.amstock.com

a few years ago they started charging, liked em better when they were free duh
Stock accounts used to do it free and easy too, but now they have you enroll in a 3rd party who charges


Yep, though I do like computershare's redesigned website.  Really easy to use and check up on.
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#5
I'm a buy &hold person myself.

In the end it's all about the dividend. If there's not one it's just risky speculation.

Buy good sensible stocks whose business you understand and whose management you trust..... and hang on to them.

Don't keep looking at the share price - it's not about that.
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#6
(11-23-2016, 09:32 PM)StingingNettle Wrote: I have a few DRIPS set up through DSPP.  

I have JnJ, Intel, Exxon, and my latest is Reynolds American

Oh yeah, and Verizon.  But my timing was shit with that one and may have to sell.

Without getting into the merits of the company or its business prospects, the yield on the last quoted price is a little north of 4.5%.  If that's a secure payout, it's worth considering just hanging onto it indefinitely.  I'd sell it only if I found a clearly better use for the capital.

For me at least, the main attraction of dividend stocks is the prospect of just buying them and realizing your returns just from the income.  For one thing, it's usually a lot more predictable than the price, which depends so much on the state of the market and news flow.  And once bought, you don't really even need to care about price if you don't intend to sell.  If you're investing for retirement, you don't have to worry about outliving your money.  For investors who don't want to manage a passel of individual stocks, there are a number of good low cost ETFs that package number of them into one security.  These days you can put together a complete multi-asset-class portfolio with just a handful of ETFs.  I own VT, GOVT, IAU, VYM, VNQ, & AMLP, along with just a few of individual stocks.
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#7
I have been doing some research myself and have come across some good options:

General Mills is a classic “buy-and-hold stock". The company provides an annual dividend of 3.05%, or $1.92 per share. For income-starved investors, General Mills has paid an annual dividend for the last 117 years and increased its annual dividend yield for 14 consecutive years.
Costco’s dividend yield may not be the highest at 1.2% ($1.80 per share), but the company is a slow and steady workhorse, providing investors with capital appreciation and consistently raising its annual dividend yield. You can’t get much more dependable than this, which is why I added Costco to my “buy and hold” list.
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#8
(11-26-2016, 02:41 PM)Finster Wrote:
(11-23-2016, 09:32 PM)StingingNettle Wrote: I have a few DRIPS set up through DSPP.  

I have JnJ, Intel, Exxon, and my latest is Reynolds American

Oh yeah, and Verizon.  But my timing was shit with that one and may have to sell.

Without getting into the merits of the company or its business prospects, the yield on the last quoted price is a little north of 4.5%.  If that's a secure payout, it's worth considering just hanging onto it indefinitely.  I'd sell it only if I found a clearly better use for the capital.

For me at least, the main attraction of dividend stocks is the prospect of just buying them and realizing your returns just from the income.  For one thing, it's usually a lot more predictable than the price, which depends so much on the state of the market and news flow.  And once bought, you don't really even need to care about price if you don't intend to sell.  If you're investing for retirement, you don't have to worry about outliving your money.  For investors who don't want to manage a passel of individual stocks, there are a number of good low cost ETFs that package number of them into one security.  These days you can put together a complete multi-asset-class portfolio with just a handful of ETFs.  I own VT, GOVT, IAU, VYM, VNQ, & AMLP, along with just a few of individual stocks.

Indeed! The payout ratio is fine for Verizon, but they do have a lot of debt and if anything disruptive comes along then it could it get worse. I was using a stop loss on it just in case. It's bounced now, so far so good.

Yes, ETF's have made it really easy to diversify. I haven't heard of some of those. Thanks.
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#9
Think through the logic: share prices go up and down on the expectation of profit and the future profit can only be distributed to investors via dividends.
So the expectation of dividends underpins everything.
Those wishing to get speculative profits based on share price fluctuations are competing with professionals who do nothing but analysis and super computers which respond to millisecond changes in prices.
Conclusion: the only way to win in the long term is to avoid speculation via buying income stocks and holding on to them
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#10
Those wishing to get speculative profits based on share price fluctuations are competing with professionals who do nothing but analysis and super computers which respond to millisecond changes in prices.
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