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Oldmansmith

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#41
Put it all in bitcoin!

I am in a similar situation, looking to buy dividend paying stocks, but sitting in all cash right now (other than physical). f the market tanks, stocks will be 50% off, that is what happened in 2000 and 2008. Good dividend stocks won't fall that much, but will still be on sale. That is what I'm waiting for.

And I'm considering trolling the dice on one bitcoin that I can afford to lose.
 

Goldhedge

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#42
One caution about seller financing is you have to ask why they can't get financing from a professional financer: the bank.

I'd make sure you had total control over the situation so you don't lose.

It reminds me of co-signing for a friend....


Sounds as if <SLV> has a good handle on it.
 

Someone_else

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#43
One caution about seller financing is you have to ask why they can't get financing from a professional financer: the bank.
Yes, they are the experts. Maybe if your selling price is higher than their valuation and the buyer is otherwise qualified...
It reminds me of co-signing for a friend....
Agreed. NEVER do that. If a "friend" has burnt family members so badly that they won't help out, that "friend" will burn you too. NEVER cosign for a "friend".
 

Zed

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#44
Chasing yield at this point may be a health hazard.
 

EO 11110

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#45
Put it all in bitcoin!

I am in a similar situation, looking to buy dividend paying stocks, but sitting in all cash right now (other than physical). f the market tanks, stocks will be 50% off, that is what happened in 2000 and 2008. Good dividend stocks won't fall that much, but will still be on sale. That is what I'm waiting for.

And I'm considering trolling the dice on one bitcoin that I can afford to lose.
nice screener here: https://www.dividend.com/dividend-stock-screener.php
 

Uncle

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#46

EO 11110

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#47

Hystckndle

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#48
Most people can't do it - in fact, I would go so far as saying only 1 in 50 succeed. Most people don't have the taste, style, capital, fortitude, or product. I watched them come and go for 2 years, and observed others when the food truck scene became popular.

Plus, when you have a winning idea, everybody tries to copy you. They even come photograph your whole scene, ask you where you got everything, even tell you they want to do exactly what you are doing - like you're supposed to help them make their dream come true, lol. I would kind of snicker and tell them to go for it.

Lots, tons, many, cannot count them,
of my friends, family, acquaintances, etc
have started all kinds of small businesses and new operations.
One of my favorite sayings is

" IQ is one thing but want to and follow through is another "

Many folks think they can " talk " or " think " success in.
Not gonna happen.
You gotta work your arse off.
JMHO
 

Hystckndle

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#49
I looked at some of the various parking places for some $.
The ones paying over 4 or 5 % ( offered by dif planning group cats )
one or two said 7% to 8 % and was REIT
had various disclaimers about your principle.
I.E. if it blows up they do not guarantee the return of your principle etc etc etc.
There is also a LOT of crowd funding stuff out there for RE.
Nahhh....not for me...that is why I chose hard property RE, similar to others here.
I hear what BE is saying and have read his posts before about selling everything.
It is all in how you see it and also your age has a lot to do with it.
How long do you want to deal with things or do you not want to be hands on ?

The Estate and Planning and Money Manager guys down here are in nirvana.
 

Hystckndle

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#50
I put a LOT of stock into what Zed says above.

Chasing yield.

Gonna look at what Uncle posted as well. Interesting thread. Thanks for starting it.

I will add that I know another guy, works in my business. He has spent 20 years working on the side buying and renovating and renting affordable places. Same colors and tile etc in all of them. Works his arse off and I have visited him on a weekend or two. His son and dad helped him along with his wife. He has 20 units now rented steady and he is NETTING 15 grand a month with them. Still working for mega corporation and has 401K and company match and health insurance. He is 60 or so.
 

Uncle

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#51

Silver

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#52
With yields so low, and risk so high, and inflation kicking up, I would probably take any 'excess' cash and buy Platinum coins and sit on them. Make up for the small amount of income you would be losing from any investment and double down on your part-time ref/umpire gig.
 

Uglytruth

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#53
With AI and all things known........ we need to face that there my be no way out of the rigged game. Understanding your a pawn instead of a free man will help you think clearly. When you understand they control you from conception until death and you amount to nothing to them but an ant serving their needs at that point things start to come into focus.

When that happens stay away from drugs & booze........
 

Silver

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#54
With AI and all things known........ we need to face that there my be no way out of the rigged game. Understanding your a pawn instead of a free man will help you think clearly. When you understand they control you from conception until death and you amount to nothing to them but an ant serving their needs at that point things start to come into focus.

When that happens stay away from drugs & booze........
When you get to that point of understanding, drugs and booze are the perfect combo :)
 

MrLucky

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#55
I was buying during the last recession. The problem is I didn't buy enough.
 

MrLucky

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#56
I would like to add a bit of advice to the OP.

When looking for dividend stock, look also for dividend growth. Good companies can grow a dividend, not just provide one. Over time, even a few pennies a year can add up nicely. Consider investing in the company directly (log into their website and get the info how to buy directly) and also consider their dividend reinvestment program. Many companies will reinvest your dividends with no fee. There is a cost to sell, but it's minimal (imo).

Look at:

utilities - most everyone need electricity one way or another. Except for you off-grid people.
sin stocks - alcohol, beer (who doesn't need beer), cigarettes, etc.

This is an example of a company with a growing dividend. I just copied this today from the internet:

Forward Annual Dividend Rate......... $3.20
Forward Annual Dividend Yield......... 6.52%
Trailing Annual Dividend Rate........... $3.10
Trailing Annual Dividend Yield.......... 6.24%

I would like to add, I personally have owned this stock for over 10 years. It's not just a random thing I found on the internet. I've also been in the dividend reinvestment program from day one. Very happy. I even had my Mom (god rest her soul) invest in them. When she passed, I got her shares as well.

Good luck
 
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Hystckndle

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#57
I would like to add a bit of advice to the OP.

When looking for dividend stock, look also for dividend growth. Good companies can grow a dividend, not just provide one. Over time, even a few pennies a year can add up nicely. Consider investing in the company directly (log into their website and get the info how to buy directly) and also consider their dividend reinvestment program. Many companies will reinvest your dividends with no fee. There is a cost to sell, but it's minimal (imo).

Look at:

utilities - most everyone need electricity one way or another. Except for you off-grid people.
sin stocks - alcohol, beer (who doesn't need beer), cigarettes, etc.

This is an example of a company with a growing dividend. I just copied this today from the internet:

Forward Annual Dividend Rate......... $3.20
Forward Annual Dividend Yield......... 6.52%
Trailing Annual Dividend Rate........... $3.10
Trailing Annual Dividend Yield.......... 6.24%

I would like to add, I personally have owned this stock for over 10 years. It's not just a random thing I found on the internet. I've also been in the dividend reinvestment program from day one. Very happy. I even had my Mom (god rest her soul) invest in them. When she passed, I got her shares as well.

Good luck
Thanks for this post.
 

EO 11110

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#58
I would like to add a bit of advice to the OP.

When looking for dividend stock, look also for dividend growth. Good companies can grow a dividend, not just provide one. Over time, even a few pennies a year can add up nicely. Consider investing in the company directly (log into their website and get the info how to buy directly) and also consider their dividend reinvestment program. Many companies will reinvest your dividends with no fee. There is a cost to sell, but it's minimal (imo).

Look at:

utilities - most everyone need electricity one way or another. Except for you off-grid people.
sin stocks - alcohol, beer (who doesn't need beer), cigarettes, etc.

This is an example of a company with a growing dividend. I just copied this today from the internet:

Forward Annual Dividend Rate......... $3.20
Forward Annual Dividend Yield......... 6.52%
Trailing Annual Dividend Rate........... $3.10
Trailing Annual Dividend Yield.......... 6.24%

I would like to add, I personally have owned this stock for over 10 years. It's not just a random thing I found on the internet. I've also been in the dividend reinvestment program from day one. Very happy. I even had my Mom (god rest her soul) invest in them. When she passed, I got her shares as well.

Good luck
thanks for the input and ideas.

that would be great. buying a 4 percent yielder that turns into a 5 percent....8 percent....10 percent (on original buy-in cost basis)

do you also look at the dividend coverage? like how much of their earnings they pay out as divs?
 

MrLucky

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#59
do you also look at the dividend coverage? like how much of their earnings they pay out as divs?
You mean Payout Ratio? Not really. Sorry. I do look at it, but it isn't the only driver of my decision.

Here's another example. I don't own this one right now, but have in the past.

Forward Annual Dividend Rate........ $6.48
Forward Annual Dividend Yield........ 5.10%
Trailing Annual Dividend Rate......... $6.28
Trailing Annual Dividend Yield.......... 4.75%

Why I don't own this stock now is partly it's price. It's 2 1/2 times as costly as the 1st stock I listed. Yet dividend is only 2 times as much. If the dividend was 2 1/2 times I'd add it to the collection for diversity. I can buy 2 1/2 shares (theoretically) of stock 1, for every 1 share of stock 2 and have more income (2.5 x 3.20 = $8.00 vs $6.48). But in the next recession, if it drops a bit more I'll think about buying it again.
 

Uglytruth

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#60
How are you thinking LIKE this or just as how much it puts in your pocket? Below I am not worried about taxes and tried to use easy inside my head numbers.

Lets say you buy 100 shares at $100 per share for a $10,000 "investment".

Annual yield is 5% or $5.

Do you put the $500 dividend in your pocket and now think you paid $95 per share?
Lets say you held that stock for 20 years. $500 x 20 = $10,000
At that point 20 years in the future if price and yield was still the same you would be in at zero out of pocket, still own 100 shares & collecting dividends right?

Am I thinking about this wrong?
 

Scorpio

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#61
Remembering that until you take it out, it is all fantasy
Just paper,

No production, no inputs, no nothing, just paper

this thing you use to purchase this magical fiat tree, is nothing but a @#$@!^T^ piece of paper too
just as there are those of us who think the constitution is more than just a piece of paper,
so too do they with their magical fiat machine

Greater fool theory and the musical chair game,

You have to make sure you have a chair when the music stops,

Silvah went to $50, and yet everyone knows it is worth more than that right?

Well it is 15 bucks and been that way for some time

Point is, timing plays into everything also,

Do you have the time to wait?
 

EO 11110

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#62
How are you thinking LIKE this or just as how much it puts in your pocket? Below I am not worried about taxes and tried to use easy inside my head numbers.

Lets say you buy 100 shares at $100 per share for a $10,000 "investment".

Annual yield is 5% or $5.

Do you put the $500 dividend in your pocket and now think you paid $95 per share?
Lets say you held that stock for 20 years. $500 x 20 = $10,000
At that point 20 years in the future if price and yield was still the same you would be in at zero out of pocket, still own 100 shares & collecting dividends right?

Am I thinking about this wrong?
not thinking wrong at all. what you described is probably base case. there are better outcomes and worse outcomes.

that 500 bucks a year is 40 bucks per month toward paying bills
 

EO 11110

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#63
Remembering that until you take it out, it is all fantasy
Just paper,

No production, no inputs, no nothing, just paper

this thing you use to purchase this magical fiat tree, is nothing but a @#$@!^T^ piece of paper too
just as there are those of us who think the constitution is more than just a piece of paper,
so too do they with their magical fiat machine

Greater fool theory and the musical chair game,

You have to make sure you have a chair when the music stops,

Silvah went to $50, and yet everyone knows it is worth more than that right?

Well it is 15 bucks and been that way for some time

Point is, timing plays into everything also,

Do you have the time to wait?

great points. my angle is to spread the bets

1. pm

2. real estate (owned, not reit)

3. stock market crap

4. social security

5. cash equivalents -- mm, cd, etc

not going for home runs....nor the blow-ups that could happen with concentration

this thread is helping me hammer out #3 above. many thanks to everyone participating
 

BackwardsEngineeer

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#64
EO,
Not trying to hijack your thread or conclusions, I am up to my armpits in the RE world. Have a kinds sorta unique position being able to discuss this with many people who are far above my pay grade and I suspect most here.... They tell not to hold more than 10% of all holdings in personal use RE, with the goal being 5% or less. Many are in the process of zero RE holdings, and that is what we are tasked to accomplish. So over next week I will start a thread called "Should I Own Real Estate?", and let the throngs bring out the pitchforks and torches...Yeah!

Best BE
 

EO 11110

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#65
EO,
Not trying to hijack your thread or conclusions, I am up to my armpits in the RE world. Have a kinds sorta unique position being able to discuss this with many people who are far above my pay grade and I suspect most here.... They tell not to hold more than 10% of all holdings in personal use RE, with the goal being 5% or less. Many are in the process of zero RE holdings, and that is what we are tasked to accomplish. So over next week I will start a thread called "Should I Own Real Estate?", and let the throngs bring out the pitchforks and torches...Yeah!

Best BE
i'll be looking forward to that thread. esp the part about 'tasked to accomplish' - equity stripping?

real estate holdings allow for a wide latitude of options. my current real estate self is just speculating on land - but only waterfront lots are considered. my geographic area is swelling in population, so the wind is at my back.

if i was in a different market i might be doing something else - or have no real estate position (esp if in an area losing population)
 

Scorpio

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#66
exactly right EO, all RE is local

and market dependent accordingly,

for instance, if you are in a bubble area, then it is wise to pay heed and sell into strength as mentioned above

if in a market that is more under control and rising simply due to construction costs and demand, then you have other options,

then too, it depends on what type of RE one is speaking to.

you are on the right track IMO, as you are looking at all alternatives,

one thing to remember about diversification, is it is a guarantee of muted returns.
if one goes up, another goes down, and you go nowhwere

to me, I am willing to go in, and get out based on my opinion of timing. Then too, paying the stupid tax, or living with those consequences either way.

one thing to remember in all of this is the tax man always gets paid, and far too large a share, so one is constantly making decisions based on the tax consequences.
 

engineear

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#67
Yes, TIMING. Met an 80yo woman from Australia/England many years ago. All her life it was pounded into her to buy land. Her family had money. She inherited a nice sum after the war. She came to Arizona in 1946 and bought land before there was the city of Apache Junction for a NICKEL an acre! Understand there was nothing out there, nothing.

Well, as time passed and the population grew she sold some for great profit. But, she told me about a hotel that bought a property next to one of hers. The lot line was at such an angle that they wanted to buy the small triangle of hers to complete their plans. She tells me...."so I listen to their offer, sit quiet for a moment and tell them this, 'I won't sell that piece to you...I'll RENT it to you!' ". To this day AFAIK, someone is collecting rent on that piece, but whoever she left it to probably sold it.

Timing. I would add wisdom to that too, Scorp. Call timing chance, luck, happenstance, whatever. You gottsta have it.

This story I told was about an elderly woman that had come into my store over 20 years ago. She arrived to get some eyewear. She looked to be a healthy 60 yo but later in the conversation told me she was in her 80's. Still attractive, strong voice with an English accent. Sharp woman, no nonsense but friendly. Said her grandfather moved to Australia and afterwards her father, a member of Parliament, followed him. She didn't relay to me what schools she attended but said she spoke 5 languages and had been around the world travelling multiple times. We sat and talked for well over an hour. No one else came in, the phone did not ring. Such an interesting human being, I couldve sat there all day mesmerized by her life stories. It was timing that brought her in that day, perfect timing.
 

Scorpio

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#68
This story I told was about an elderly woman that had come into my store over 20 years ago. She arrived to get some eyewear. She looked to be a healthy 60 yo but later in the conversation told me she was in her 80's. Still attractive, strong voice with an English accent. Sharp woman, no nonsense but friendly. Said her grandfather moved to Australia and afterwards her father, a member of Parliament, followed him. She didn't relay to me what schools she attended but said she spoke 5 languages and had been around the world travelling multiple times. We sat and talked for well over an hour. No one else came in, the phone did not ring. Such an interesting human being, I couldve sat there all day mesmerized by her life stories. It was timing that brought her in that day, perfect timing.
good stuff for sure
 

Uglytruth

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#69
Was told of a guy that bought farmland as an investment. Few years later they wanted to buy in a mall. TIMING!

Now all permits and plans are submitted and council, trustee, commissioners get a heads up before it happens.
 

Silver

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#70
My brother wrangled a 50 acre VA plot from my grandmother for next to nothing in what turned out to be the heart of the Eagle Ford Shale. My grandmother and her destroyed WW11 vet husband (who lived out the rest of his life in a VA hospital after the war) bought this 50 acres for $5000 with a VA loan. My brother sold it for $20,000 an acre (and kept the mineral rights).

So yeah, raw land can be a great investment, if you live long enough.
 

EO 11110

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#71
My brother wrangled a 50 acre VA plot from my grandmother for next to nothing in what turned out to be the heart of the Eagle Ford Shale. My grandmother and her destroyed WW11 vet husband (who lived out the rest of his life in a VA hospital after the war) bought this 50 acres for $5000 with a VA loan. My brother sold it for $20,000 an acre (and kept the mineral rights).

So yeah, raw land can be a great investment, if you live long enough.
that's a shame. should've leased it. is there any still in the family? i can help
 

EO 11110

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#73
He made out like a bandit and still has the oil pool lease money. My brother owns it and I never got a dime from it.
damn, that sux. one simple piece of advice for all of our readers. hold out....negotiate......hold out....negotiate. the later deals are always the best
 

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#74
I made a fortune in raw land (ranchland and recreational/hunting land) and some of it that I sold is now worth 3 times what I sold it for in 2004. There is little risk unless you buy at the top. Just because it may not be income producing doesn't mean you can't make a killing on it.