Hi, I wanted to cover a stock I posted about on my Facebook account https://www.facebook.com/100075642095229/ RetirebyLearning.
Its where I explore topics on passive income, investing, real estate and more as I approach retirement, I want to do it well and early so I’m taking what I learned and sharing it with others so that they may learn. Do not follow blindly, research and learn from my mistakes and successes.
Friend recommended Newell brands under $14 & 6.5% dividend, so I decided to test it against my stock buying guidelines.
Does it pay a dividend? yes and a good one
So it pays a good dividend and I know the brands and like and use them, so to me when the price drops with a bad market, a stock like this is a buy and hold and collect the dividends reinvesting to grow my holdings while the price is down waiting for the rise again.
it took me a while to get the this mentality on the markets but since I have my portfolio has grown even in bad times. It gives me a passive income that I can one day use to cover my bills in retirement with dividends and not eating away at my holdings. This is a long play but one I think will work for me.
So here is my update. I purchased 200 shares for an average price of $13.39 in November. As you can see the price as of today is $12.64. Down a little. So did I make a mistake?
As of today my account shows I have 203.41 shares at $12.64 a loss of 5.46%
So good or bad?
I am looking for a long term investment. I expect over the next 5 years the market will rise again as it has in the past. If I buy stocks strictly on price (buy low/sell high) I would not be happy when the price drops.
But I don’t buy just on price. I always want the lowest price but timing the market would take way too much research and time to really make it worth it plus I find it boring and hated it when I tried.
So, I look for what I think are solid companies, hopefully where I use the products, look for a good dividend and try to buy at the lowest point I can but know waiting can also cost me if the price goes up.
So, Newell are good solid products, did two buys and gained a little value by buying at the lower price of13.09. If I had waited, could I have saved more from the numbers yes. Could I have lost and paid a higher price, YES.
So, I purchased and since then received a dividend of $46 and reinvested it for 3.41 shares. Next quarter I will receive a dividend on 203.41 shares instead of the 200 I first purchased. Each quarter, even if the price does not go up the number of shares, I own does which means so does my dividend payments. I plan to be able to retire and supplement my income from a pension, social security (not expecting much) with the dividend income from the stocks I buy. I’m looking for stocks with good products or services that I know and may use.
When the stock is going down, I gain more shares with the dividend reinvestment and when the stock rises I gain on value from the reinvestment at the lower prices. So is Newell good or bad, I think good, the whole market is down so I’m not worried about the price drop. They have not shown signs of lowering the dividend so I’m willing to wait and reinvest the dividends at lower prices and make more when it rises.
I am not jumping up and down over Newell, but it plays into my overall strategy and will help to provide supplemental passive income for me to use in retirement. I have less then 5 years and plan to retire long before I can collect social security. I want to have enough life in me to enjoy retirement.
My father retired while many of his co-workers stayed on to make a little more. Most of them passed while working, never enjoying the fruits of that labor. My father had many years before he passed and was able to enjoy his retirement. I plan to enjoy mine traveling to visit family around the country and aggravate them. Also as a Mason, I am hoping to visit lodges in every state of the US and overseas. Its good to have a plan to get out and do things, even small things.
Good luck on your journey to retirement.
Also check out my other Facebook page for Sandy Therapy dog https://www.facebook.com/Sandytherapydog She is a great pup and I love posting reels for her.
Hope this helps you play and earn more.
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