I would like to wish all the Main Street beats Wall Street readers a happy and healthy new year.
It’s been a little while since my last post; I’m just not messing around with this market with a trader’s strategy. I do believe there are some opportunities for longer term investments but it’s really not my thing. Having said that, while I’m idle from my trading I did make a couple of purchases last week. And I plan on holding these positions for a while.
With the market moving horribly for what I do I decided to look for some good dividend stocks. I figured I would put some money to work with stocks while they’re low, make a few bucks with dividends and possibly make a few points on the stock. Because I really don’t think the market will be getting better any time soon.
I did some investigation and put a small list of dividend stocks together that I feel will perform well. So far I bought 2. Both are great companies that have been paying dividends for a very long time. I am concentrating on dividend stocks because most seem to not be as volatile in this market.
The first one I bought is VF Corp (VFC). I bought 200 shares at $25.80. I will be receiving a 7.9% dividend at that buy-in price. I paid a total of $5160 for the 200 shares and I’m very happy getting a 7.9% on my money with the possibility of making a few points on the stock. I like my buy-in price which is low for this stock.
The second stock I bought is a REIT stock called Medical Properties Trusts (MPW). This stock pays a dividend of 10.5% at my buy-in price. I bought 400 shares at 10.95 per share for a total of $4380 invested.
Buy 200 Shares VFC @ $25.80
Buy 400 Shares MPW @ $10.95
I have been studying dividend stocks. If you have any questions about the 2 I bought or any others please send me an email. If the 2 I bought go up, great. If they move down a little I’ll be buying more which will give me a better dividend on money invested.
When investing in dividend stocks there are a few things to know: The ex date, the pay date, the amount of the quarterly dividend, how long the stock has been paying a dividend, how often they increase the dividend. You also must know how to figure out what percent your dividend will be, which is based on the price you pay for the stock. For example, MPW is paying a dividend of 29 cents quarterly. You times that by 4 to get the yearly dividend which is $1.16 per share/yearly. I paid $10.95 per share. You divide the dividend by the price paid. The dividend of $1.16 divided by $10.95 gives a 10.59% dividend. If I paid more for the stock my dividend percent would be lower. If I paid less for the stock my dividend percent would be higher.
I feel this might be a great time for dividend stocks. With the way the market is moving I feel investors might opt for the dividends instead of dealing with the volatility. Let me know if you have any questions.
Successful trading,
Steve
The Options Coach