A question to ask is why does one buy companies that distribute dividends. Do you want the dividend to reinvest back into the company stock in order to generate better overall returns for your holdings or are you seeking an income stream?
If you are looking for overall returns then PPG and MDT probably would not be your first picks. Buying a S&P 500 ETF like SPY would have walloped both of these companies. TGT is very volatile due to the cyclical nature of retail. TGT was recently boycotted by right wing conservatives because of the company's celebration of Pride Month. 😢 There's a Wikipedia article on it. Personally, I thought the boycott was stupid 👎 but we can't ignore the impact it had on the stock price. 📉 Had you bought in while the stock was down, cheap, and out of favor then you would have captured both capital appreciation and a wonderful dividend yield! 🎉 The retail sector is not simple to invest in so I stay away.
If you are looking for dividends for the income then I would pass on all three of these right now. All of them yield below 4%, which is my minimum for an income play. There are REITs like O and ADC, oil and gas companies like OKE, business development companies like TSLX, and many closed end funds like BST that produce a much thicker income stream. 💰
And I have also some interesting news for you, Boris. As of Next Week, we have someone fully dedicated on Dividend Investing to provide articles for Compounding Dividends. Really looking forward to this!
A question to ask is why does one buy companies that distribute dividends. Do you want the dividend to reinvest back into the company stock in order to generate better overall returns for your holdings or are you seeking an income stream?
If you are looking for overall returns then PPG and MDT probably would not be your first picks. Buying a S&P 500 ETF like SPY would have walloped both of these companies. TGT is very volatile due to the cyclical nature of retail. TGT was recently boycotted by right wing conservatives because of the company's celebration of Pride Month. 😢 There's a Wikipedia article on it. Personally, I thought the boycott was stupid 👎 but we can't ignore the impact it had on the stock price. 📉 Had you bought in while the stock was down, cheap, and out of favor then you would have captured both capital appreciation and a wonderful dividend yield! 🎉 The retail sector is not simple to invest in so I stay away.
If you are looking for dividends for the income then I would pass on all three of these right now. All of them yield below 4%, which is my minimum for an income play. There are REITs like O and ADC, oil and gas companies like OKE, business development companies like TSLX, and many closed end funds like BST that produce a much thicker income stream. 💰
So, always start with "why?" and go from there.
Totally agree!
And I have also some interesting news for you, Boris. As of Next Week, we have someone fully dedicated on Dividend Investing to provide articles for Compounding Dividends. Really looking forward to this!
This is great news! 🎉 I'm looking forward to more articles and more discussion! ☺️
The honor is all ours!