Half of it is in dividend growth stocks
It generates $3.75 billion in annual dividend income
That is $7,142 in dividends per minute
Archives of “dividend” tag
rssSouth Africa’s Gold Fields profit jumps on rising Bullion prices
Via Reuters
- Gold fields interim profit up by 300%
- Higher interim dividend revealed equal to total dividends declared last year
- Higher gold prices boost future dividend potential
- Lowers 2020 output guidance
Expect this kind of pciture to be repeated across gold miners as long as bullion prices remain supported.
10 Insights from Benjamin Graham
Benjamin Graham doesn’t need an introduction. His sober look at the stock market has built an enormous following and for a good reason.
1. “If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.” – It is true that perfumes come and go out of popularity, but no trend lasts forever. There are trends that last 3 months; there are trends that last 3 years.
2. “Obvious prospects for physical growth in a business do not translate into obvious profits for investors.” – it depends on to what level has the expected growth been already discounted. The truth is that it is really hard to forecast growth in quickly developing businesses. The market always overdiscounts at some point, but in the meantime trend followers could make a killing. You never know how long or how fast a trend could go.
3. The only constants in the markets are change and uncertainty. Not only business environment changes, but also people’s perceptions of stocks change.
Most businesses change in character and quality over the years, sometimes for the better, perhaps more often for the worse. The investor need not watch his companies’ performance like a hawk; but he should give it a good, hard look from time to time.
4. Different catalysts matter for the different time frames:
Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.
5. The difference between a trader and investor
The most realistic distinction between the investor and the speculator is found in their attitude toward stock-market movements. The speculator’s primary interest lies in anticipating and profiting from market fluctuations. The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices. Market movements are important to him in a practical sense, because they alternately create low price levels at which he would be wise to buy and high price levels at which he certainly should refrain from buying and probably would be wise to sell.
6. How to think about risk (more…)
Conventional Wisdom
Conventional wisdom is defined as: the generally accepted belief, opinion, judgment, or prediction about a particular matter.
Conventional wisdom is almost universally agreed upon by everyone that it rarely gets questioned, even if sometimes the belief isn’t really true.
The conventional wisdom with regards to investing is to buy and hold great companies for long periods of time so that your portfolio compounds with capital appreciation and dividend re-investment. This approach has strong validity and is best exemplified by Warren Buffett. He has the long term returns to prove it.
But it may not be for everybody, or else everyone would have invested like Warren Buffett. Very few have the right skill set to buy-and-hold and be successful like Buffett, or be successful for decades.
In short term trading, the conventional wisdom is enter stocks at pivot points, trade small and cut your losses and let your gains run, and use risk and money management. Very few can succeed with the short term trading approach, due to lack of skillset or lack of discipline. Also, in the short term, the market fluctuates too much so that stoplosses get frequently hit. Even if successful, it is doubtful many can beat the returns of buy-and-hold investors in the long run.
Another conventional wisdom is that in order to get bigger returns, one has to dramatically increase risk. Like getting into leverage instruments such as options, futures and penny stocks. Very few can succeed long term via this route, mainly due to the extreme risk factor.
One can go through a lifetime or even several lifetimes and still cannot get through the stock market dilemma and confusion. For many people, only through a paradigm shift in thinking and approach can they increase their chances of market success.
A paradigm shift is a change in accepted theories, opinions or approaches, a step above and beyond, and is almost always better than the conventional wisdom. That’s why it’s called a paradigm shift.
The question is:
The question is:
Is there such a paradigm-shifting stock market approach out there?
Trading Rules: Strategies For Success
1. Divide your trading capital into ten equal risk segments
2. Use a two-step order process
3. Don’t overtrade
4. Never let a profit turn into a loss
5. Trade with the trend
6. If you don’t know what’s going on, don’t do anything
7. Tips don’t make you any money
8. Use the right order to get into the markets
9. Don’t be whimsical about closing out your trades
10. Withdraw a portion of your profits
11. Don’t buy a stock only to obtain a dividend
12. Don’t average your losses
13. Take big profits and small losses
14. Go for the long pull as an outside speculator
15. Sell shorts as often as you go long
16. Don’t buy something because it is low priced
17. Pyramid correctly, if at all
18. Decrease your trading after a series of successes
19. Don’t formulate new opinions during market hours
20. Don’t follow the crowd – they are usually wrong
21. Don’t watch or trade too many markets at once
22. Buy the rumor, sell the fact
23. Take windfall profits when you get them
24. Keep charts current
25. Preserve your capital
26. Nothing new ever occurs in the markets
27. Money cannot be made every day from the markets
28. Back your opinions with cash when they are confirmed by market action
29. Markets are never wrong, opinions often are
30. A good trade is profitable right from the start
31. As long as a market is acting right, don’t rush to take profits
32. Never permit speculative ventures to turn into investments
33. Don’t try to predetermine your profits
34. Never buy a stock because it has a big decline from its previous high, nor sell a stock because it is high priced
35. Become a buyer as soon as a stock makes new highs after a normal reaction
36. The human side of every person is the greatest enemy to successful trading
37. Ban wishful thinking in the markets
38. Big movements take time to develop
39. Don’t be too curious about the reasons behind the moves
40. Look for reasonable profits
41. If you can’t make money trading the leading issues, you aren’t going to make it trading the overall markets
42. Leaders of today may not be the leaders of tomorrow
43. Trade the active stocks and futures
44. Avoid discretionary accounts and partnership trading accounts
45. Bear markets have no supports and bull markets have no resistance
46. The smarter you are, the longer it takes
47. It is harder to get out of a trade than to get into one
48. Don’t talk about what you’re doing in the markets
49. When time is up, markets must reverse
50. Control what you can, manage what you cannot
The 10 Commandments
1. Thou shall not go against the trend.
If it be down, let it be down. The market is bigger and stronger than you.
Follow the market but be one step ahead of the crowd.
2. Thou shall not follow the herd instinct
Just because many people are buying a certain stock does not mean you should follow suit. If people want to buy rubbish stocks, that is their bad luck. Don’t make it yours.
3. Thou shall treat the market as a business, not a casino
The stock market is not meant to be a casino and you should not be there to gamble.
4.Thou shall not buy high-debted and no-earnings stocks
All companies that folded are highly geared with negative earnings. Don’t buy rubbish shares; don’t buy somebody’s liabilities.
5. Thou shall only buy solvent companies with good-growth prospects
Present earnings are important, but future earnings are more important. That’s why we have companies selling at high PER (Price earnings ratios).
6. Thou shall not be overconfident
Overconfidence leads to overtrading. Once you overtrade, you may not be able to control your own emotion. Fear may set in when the market is not going the way you expect it. It may disrupt your plan, turning your profitable trade into a loss.
7. Thou shall invest within the comfort zone
Don’t be too greedy; don’t play with borrowed money. Debt is a disease. It can cause you a lot of problem if you are not careful.
8. Thou shall be patient
The market is designed to transfer money from the impatient to the patient. You must have very good reasons before you switch counters. Very often, the shares you sell move up faster than the shares you buy.
9. Thou shall be disciplined
Don’t change your strategy at the eleventh hour. If you have placed a stop-loss in your chart, don’t remove it unless it is replaced with a trailing stop-loss.
10. Thou shall be knowledgable
Investment in knowledge pays the best dividend. No one is so skillful that he cannot better his best. Keep learning for knowledge is boundless