Friday, May 18, 2012

Happy Friday and Stock selection

Happy Friday!

I hope you're having a great Friday!  I just finished picking my first stock( PBI )! A few weeks ago it was trading at ~17$, but is now near it's 52-week of $12.81.  There were two major factors that I used in selecting the stock I chose:
  1. The stock should have a long history of paying regular dividends.  Not every so often, but yearly, quarterly, or monthly for at least 5 years.
  2. The stock should be trading at an amount that would allow at least a 5% yearly gain through dividends alone.  

I set these rules in place because I don't believe in trading worthless pieces of paper.  Most stocks (IMHO) are just tokens people buy and try to sell for a profit to someone else.  Requiring regular dividends means that I don't have to care whether the stock's price goes up or down. This is because I'll continue to get that % return every year in the form of a dividend regardless of how much I paid for it.

 Have  a great weekend!

P.S.  I forgot to mention the two main tools I used were Google Finance and Dividend.com's list of Stock that have increasing dividends for the last 25 years.

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