This article makes more sense then my previous reply 
My mistake was not checking current dividend yield vs 5 year average yield.
Keep A ‘Targeted’ Eye On Wal-Mart https://seekingalpha.com/article/4317839?source=ansh $WMT
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Since looking at Walmart, even at it`s high price, Apple looks even better value if you look at discounted cashflow and ROE. I also have Berkshire Hathaway in mind. Warren Buffet and Charlie Munger can you the calculations for me!
I bought back in to JD Sports Fashion this morning.
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When I calculate ROE I don`t actually use net income. I use operating cashflow minus depreciation. I like companies that can change profits in to cash.
I have considered berskhire hathaway but held back currently as I don’t know the successors considering that even warren buffet notes how they are getting on in age. since there will be a passing of the baton in the future, I would like to first know more about those that will be taking over the main investment decisions before committing to a 5+year holding.
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To each his own
I prefer safer cushions , but then again when market corrects it will hit both overvalued and undervalued. So I guess it is more of psychological thing for me especially to comfort in buying undervalued.
But anyway dollar cost average down all the way
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What do you guys think about oil sector .NYSE: XOM is at its all time low . Also RDSA and RDSB are hitting bottom . Just to remind you that most of these going to be exdiv early next month. I am also keen in buying LON: IMB ethical reasons are however keeping me not going for it
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Personally I am long RDSB and IMB was lucky to add on latest dips, even bottom for IMB. 12% yield
good and steady div history. I don’t think oil and tobacco are leaving us anytime soon.
Xom is on my watch list getting close to 66-67$ which is my entry point.
Oxy is also rebounding big, I got in at 37-38$ range, but it is still in decent yield range compared to historic values…
I have no oil shares, but if I did I would prefer producers to explorers. I had two disasters with Tullow Oil and Great Gulf Petrolium. I would prefer Royal Dutch Shell and BP. I m in the UK. I don t know much about USA oil stocks, but I would look at the big oil producers there. Also, anyone outside the UK should keep an eye on the pound. Interest rates maybe about to drop and it could affect the pound.
I have 2 shares of OXY as it seems to have levelled out and shown promise to correct after they got Warren Buffett’s funding and are in the process of re-balancing the acquisition to sell off the portion they don’t need to reduce their debts.
IT seemed to be that OXY’s price plummet was solely because of piling up the debt associated with using a loan to merge and acquire. Reminds me of how pepsico was seeing its price hover around a specific level for a while and the only bad thing I could see in its numbers were that it had a lot of debt.
Cool XOMI is close to 67 mark will check today later, But its going to be a dividend share that i am planning to keep for long.
Quite uncertain about LON: IMB shares though , took a massive tumbling yesterday ! am not sure what is the right price i think i shall wait for it to reach at 1700 p ?
Really depends on your strategy. I tend to buy entry point 500$ at any level as long as its below average fair value(10%-15% below).
Then I put Limit buy order for 500$, buying on dips.
Ie near 52 week bottom or similar. Some attractive pricing in any case.
IMB is not 11/11 Super swan stock, but i think with yield /risk is pretty balanced.
1705 was bottom, which I placed Limit order.
Anyway even at current price it is great entry level. Add more on dips…
Thanks mate that’s good strategy
Bought 100 shares of Xom at all time low of 66.21 i guess thats a good dividend purchase since i can see their share being mentioned by every dividend buyer hopefully that comes out true. Their Guyana news and their earnings report is due so hopefully can see a good rise ahead
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I have seen XOM, but looking back at its price history is what put me off getting any. the dividends may be good and secure, but the price has been on a constant downward trend and if it keeps going as it has been, your dividends will just end up covering the loss in capital value.
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Thats not a value stock at all, I have just got it for the dividend that it offers and how stable it has been in giving dividend shares to shareholders . Planning to keep it for as long as possible without worrying about the price fluctuations unless of course we have Tesla building battery powered aircrafts and ships
While I usually agree with your view.
I am not sure why people are afraid of capital depreciation. Reality is, if company has strong fundamentals/ secure dividend and strategy is to buy/hold lifetime, it just means you will ge cheaper yield on near/mid term…
I would like to have all my dividend stocks drop in price as long as business model/fundamentals have future
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Totally agree they used to be the worlds biggest trading company within oil sector, ARMACO has got its ipo recently but you cant buy their shares yet i would be wary to buy them anyways. I have looked at them for many years now and they are most stable . Their is also a long wait for a stock split which might happen down the path who knows. So i dont have any issues with there stock prices going low, but yup if you are considering them as value stock rather than dividend then they are not the best one to buy neither any oil company i’d reckon ?
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I try to buy keeping both sides in mind. Dividends are great, but for me they are a way to give higher returns on average beyond non dividend stocks, at the very least I want the company to be on a horizontal plane if not showing prospects of turning around investor confidence. I won’t buy solely for growth or speculation, but a solid dividend alone also isn’t enough for me currently as I have very little capital to work with and can see greater returns elsewhere.
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Bought my first USA stock today, Apple. Unlike the UK no tax to pay. I will average in. Plenty room for a rise in the short term. Room for growth and/or cash to be returned to shareholders.
Just remember that while you avoid a fee on the purchase, your US shares will fall victim to 2 rates of fluctuation rather than just one. Share can go up in price and you could still lose money.
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