Forgot to mention royalty trusts as well. Sometimes I wonder if the tax paperwork is worth it. But there are some good ones out there suitable for a poor boy. I also like as a dollar hedge a diversified European stock fund and gold.
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Buy when there is blood in the streets?
- Thread starter TradeByTheWater
- Start date
Quote from Arthur Deco:
FWIW, my investment strategy is to buy high dividend paying stocks with less than unity payout that also appear to be undervalued. I suck on the divvies until the stock price recovers, then dump them. The stocks (and similar ETFs) I bought last year are dropping like flies now. So I am taking the profits and not looking back. I see another crisis of confidence in securities of all kinds brewing. A bottomless pit for years. That's my rosy scenario.
how do you determine undervalution?
Hahahahahahahaha! It's so stupid I hate to say it! If it is yielding significantly more with a reasonable and sustainable payout ratio than comparable stocks in its industry, or has a similar yield but lower payout than the others. Or if its price is significantly below the 50 day moving average for no good reason, such as a downgrade many months ago that it should be about to pull out of. In the end, I might buy Heinz over Kraft because I like their catsup better.
Quote from piezoe:
Very good point, in my opinion. So far we only have a pullback. It is very likely that a bit of patience will prove this to be the start of a correction. There are several very obvious support points on the way down. I'll start to think about buying in the 1050-1000 area, but won't be surprised to eventually see 970.
http://seekingalpha.com/article/203098-why-markets-won-t-fall-by-more-than-10