Yes I’m new to the stock market, but come on, even I know this is a bit crazy. Ups, downs and all around insanity. Get your act together!
It’s awesome being a dividend investor right now because my current plan of action is to ignore the craziness. Can I get a “Amen”?
My portfolio worth went from 12% to 7%. That’s impressive. When I looked at my account recently, my absolute first reaction was “Cool, I’m still 7% higher than if I did nothing with my money”. I’m forever the optimist. Plus I’ve gained $78.49 in dividends alone since I started in October, 2015 so WOOT WOOT.
Way better than a savings account. All around my portfolio is up $484.70.
Latest Stock Buys
In this recent downturn, I picked up 1 share of Apple (APPL) at $91.18. I had an extra hundred in my Robinhood Account and while I thought I would NEVER buy Apple, I couldn’t pass it up. I have always avoided it since I’m more of a Google guy and frankly people who love Apple products are THE WORST. Look at these people. Come on, you’re tattooing a company brand to your body and it’s an apple. You’re a couple fruit away from becoming a Fruit Ninja.
Here are some my reasons: Apple has SO much extra cash on hand (55.84 Billion) according to Yahoo. Plus with such a loyal following, they can do so much. I’m still waiting for them to buy Adobe. It’s been rumored, but nothing has happened. They did however recently invest $1 Billion in Chinese Uber Rival, Didi Chuxing. Uber is huge and if these guys have the Chinese market, there are opportunities to grow.
Yes, the iPhone market is getting saturated, and Samsung is getting some of that smart phone market share, but so what. Reference the above Apple Tattoo. People are die hard about Apple products and they frankly work well. That loyal following was the sustainability I needed to buy my first Apple share and now the prices is up to $95.22. I’m just sad I couldn’t buy more at the time. It was so near it 52-week range low and it’s P/E at 10.60. I usually try to take P/E (Price Earnings Ratio) into account
FUN Coincidence: Right after I bought my 1 share. Warren Buffet announced he invested $1 Billion in Apple. So maybe I’m doing something right. Am I the next Warren Buffet? It’s very likely, based on this one isolated coincidence.
I now have an extra $130 in my Robinhood Account now waiting to be invested. I was hoping to write this article and do some research on what I should do with it.
Here is my list of the next 3 stocks that I’m watching and may pounce on in the next month.
- Verizon (VZ)
- Main Street Capital Corporation (MAIN) – Maybe
- Kinder Morgan (KMI)
I’ve often listed many reasons why I love Verizon (VZ). The simplest is that people HAVE to have a cell phone and Verizon is growing a solid hold over this industry. How much is your monthly cell phone bill? You can answer this because you have a cell phone and you will climb stairs and mountains to get a better signal. Anything you pay a monthly bill for, I’m all for. I’m a huge fan reoccurring payment models and Verizon has one of the best. The P/E is still an impressive at 11.26 and at the current price per share is $49.66. It seems worth it for me. Frankly anything under $50 I’ll buy for Verizon. Just like anything under $100 for Johnson and Johnson (JNJ), I’ll buy.
The second is Main Street Capital Corporation (MAIN) I’ve been recently learning more about since Jason Fieber, of the previous glorious Dividend Mantra, brought this to my attention through his Facebook Page. Since he had a significant holding of it, I thought I’d give it a look.
Main Street Capital Corporation is a business development company focused on lending capital and expertise to lower middle market companies with annual revenue between $10M-$150M. WTF. I had to spend all morning looking up what Business Development Companies were.
Business development companies function similar to REITs where they typically distribute 98% of their taxable income as dividends to avoid corporate taxation. In fact, you could say business development companies are REITs for Businesses. They buy, improve and sell companies to make a profit.
I am still on the fence about this one since it’s high risk/reward and it’s heavily influenced by any kind of Fed Rate Hike. If it gets back down to $26 I may try it out. It has an attractive monthly dividend, meaning it pays it’s dividends monthly like Realty Income (O).
Third, I may get in on Kinder Morgan (KMI). I love that it’s essentially a pipeline toll road that oil companies will pay in order to move their natural gas. Recently the price has dropped from $44 a year ago to the current $17. People are waiting to see where the oil and gas movement will go, but I think it’s already hit bottom and will slowly move up. If there is one oil & gas business model I can get behind, it’s Kinder Morgan.
I just need to understand their tax structure better……
Have you bought Apple recently or have any other recommendations for Stocks to watch out for?