Birchtree's Account Talk

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burrocrat said:
i don't get the candlestick one, just noise. but the wave one on the bottom reminds me of skipping stones, and it's already bounced four times. i know where that leads.
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Thanks, I think the MACD skipping stones over water is a great analogy of "losing momentum."
 
I only use the Merrill Edge which ties up with Bank America checking - it's very efficient. I'm also on margin with them and my interest rate cost is 2.75% and it's deductable to offset my dividend income. Because of my balance I don't pay any commissions on the first 30 trades per month - after that it's $4.95 a trade.
 
I've earned some nice gains on my bank stocks and will continue to DCA into them until I'm out of breath from chasing them higher.
 
Some talking heads are mumbling that dividend stocks are the place to be invested for 2013 - well I had 136 dividend increase announcements for 2012 and I'm curious if I can beat that number this year. I believe the surprise will be that relative to GDP, corporate profits are now going to be at a new all-time high. Housing continues to show relative strength.
 
One of my New Year's resolutions is to start investing in dividend stocks and running with the bulls. OLE !!!
 
konakathy said:
One of my New Year's resolutions is to start investing in dividend stocks and running with the bulls. OLE !!!
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I started in 2010 with a pitiful amount invested in 4 dividend paying stocks, with an old forgotten IRA rollover ( < $500 in each)...even got a nasty letter from one company, offering to buy my "small lot" back ! After retiring, and rolling the Wife's 403(b) and a major portion of my TSP into our self-directed IRA's, we're up to ~25 dividend paying stocks.

What has been amazing to me is how often money comes in from those dividends...not a lot (yet !), but it's still hard to keep track of...can't imagine tracking an account like the BT 300 :D

Stoplight...
 
Mahalos for the encourgement. I have about 10K I'm thinking of investing with. I'm still doing my homework on which ones, and how much to invest in each.

Any thoughts on which ones to jump in with?
 
konakathy said:
Mahalos for the encourgement. I have about 10K I'm thinking of investing with. I'm still doing my homework on which ones, and how much to invest in each.

Any thoughts on which ones to jump in with?
Click to expand...

Well, I wouldn't DARE wander around BT's manure pile too much, and I'm not a pure acolyte of BT's approach...for instance, I don't reinvest the dividends...I dump them in cash, and then use that to spread out my exposure to other companies. I also have a pot that I use to trade, based on 1 of the premium services...

But, in 2012, here are a few that have been good to me !

National Presto (NPK) - a "classic"...with the "special dividend", it was an 8.6% dividend yield. Gotta sit on it for a year, though...

AT & T (T) - everyone's got a cell phone, right ?

Paychex (PAYX) - although they accelerated their dividend into the prior year, so the dividend yield is skewed

Seagate Technology (STX) - tech company, whose day-to-day swings can give you a heart attack, but they paid me a 4.5% dividend yield

Just my thoughts...hopefully, BT will offer his opinions, too...just hope he goes easy on me :D

Stoplight...
 
Here are a few cherry picks that increased their dividends last year that I also happen to own: LNT, OKE, BLX, AIT, PFE, GE, EBF, AEC, GAS, BMY, GMT, FIS, ONB, BBT, WR, ENH, MLR, CNQ, - just to mention a few. You could do just as well by throwing a dart at a financial page or by hiring a feline advisor. The trick however is to use a dividend reinvestment approach to take opportunity of market volatility. Every day when I wake up I know that something is going to be happening in my oceanic account and this pattern repeats every three months. If you reinvest your dividends you buy stocks no matter what the market may be doing - it's fate based to purchase often times golden prices for more shares. Remember no matter how the market treats you capital will move like the tides but the number of shares that control the income produced remains relatively constant. My oceanic account is on autopilot and I like it that way.
 
I got a couple hundred in preferred stocks in my TIRA, the list is a mile long. They did very nicely in 2012. The main criterion for their selection was that the dividend had risen for each of the last five years as of April 2011 when we bought.

Try to find a means of sorting according to something like that.
 
Excellent - let the dollars continue to flow. The November Dow resistance was at 13,290 and has now become some support - but we are close to penetration. I bet we hold. There is no serious damage to the bullish trend as long as the SPX holds 1420. Remember QE4 is still operational - don't fight the Fed.
 
Birchtree said:
....The trick however is to use a dividend reinvestment approach to take opportunity of market volatility. Every day when I wake up I know that something is going to be happening in my oceanic account and this pattern repeats every three months. If you reinvest your dividends you buy stocks no matter what the market may be doing - it's fate based to purchase often times golden prices for more shares....
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Excellent words of wisdom. You've built a solid fortress, Birch. Well done.
 
As long as I'm on margin the oceanic is vulnerable to a heavy smack down - but I've been building my sacrificial lamb chop account in reserve for protection. Eventually in a couple of years I may start reducing the margin balance but until then I'm full speed ahead with QE4 and lower rates. I need to make another $400K in equity and then the margin clouds open up and provide ample cash to throw into this bull market. I'll spend as much credit as they'll provide using my current collateral - I'm so ready to leverage up because I know what the future holds. Snort.
 
I guess I should just accept the fact that this lateral market move is going to pull nickel and dimes out of my pocket for the rest of the week - but then maybe not.
 
Birchtree said:
I guess I should just accept the fact that this lateral market move is going to pull nickel and dimes out of my pocket for the rest of the week - but then maybe not.
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Joe buyer can't stand to wait much longer, we've stayed within a very small range over the last 2 days, what will really burn people is if this turns out to be the only pullback they get. That means they will have missed not one but two buying opportunities in the same month. I don't get it, we are clearly in a bull market and January is the last of the best 3 months of the year, the only greater sin than the fear of losing money is the fear of making money...
 
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