Dividend Stocks For Entertainment Update 1

Well, we’ve started to collect our money for dividend stocks for this entertainment website!

So far, we’ve earned $300 dollars to be invested in some dividend stock, then we’ll use the dividend income to fund the activities on this site!  The three hundred dollars was from a socialization site submission service that was “officially” started in January.  The term of the submissions service will expire in March 2013.  Why March?  Because as part of the service, January and February of 2012 were free.

Back to our dividend stocks for Entertainment!

In the previous article, I mentioned that the BP dividend stock might be a good candidate to look into, and it has rose about 5% since I mentioned it a few weeks ago.  It’s still a decent stock, but we decided to go more aggressive, since we only expect to have a little to invest.  After all, a 5% dividend is only $15 for the entire year…  That said, we might pick it up if we earn more money to invest…

We’ve decided that we will make our first dividend stock purchase after we have saved up at least $530! Why the $30, you might wonder?  Because of the transaction costs to make the stock purchase and corresponding future sell of that stock.

And we’re going to try and find a dividend stock that pays out at least 10% in dividends.  We’re going to stay away from limited partnership stocks though because the tax computation can be very complex.  Instead we are going to focus on REITs since they payout at least 90% of it’s earnings in dividend.

We got a long way to go, with just being half way to our first $500, but it’s a start!

Bests,

D

Is BP a Dividend Stock For Entertainment Money?

I’m thinking of recommending that my son purchase BP as his first dividend stock for Entertainment money!

Why, you might be wondering… while having a disgusted look on your face…

Well, it was hit pretty hard with lawsuits and other persecutions by the US.  So its stock price is still way off of it’s highs.  But the main reason is that I expect the stock to stay pretty stable at these current prices, and for them to keep their 5% dividend in place.  In fact, I’m hoping that they increase their dividend as the price of the stock goes up over time.

BP_Chart-300x206

BP’s current PE ratio is 5.0, which seems to be a good number for its industry.  Although, the oil spill was a very tragic event, I don’t think the company will go under, and I think that their nice juicy dividend should be good for a long time!  Now I just need some money to pump (pun intended) into the stock since we currently only have about $100 to invest.

Notice in the chart above that they really haven’t recovered much from when the oil spill hit them the hardest!

Disclaimer:  I’m researching this stock, I have not immediate plans to buy any shares within the next 72 hours, nor do I currently own any shares.

Thanks for reading

~D

 

Thoughts on a Dividend Stream For Entertainment

Dividend Stream Idea

The idea is to invest money into a stock that yields a dividend.  Hopefully the stock(s) have some growth potential and yields a dividend rate greater than 5 %.  REITs usually provide such dividends, perhaps they would be a good place to start.  At first, use all of the dividend for entertainment purposes, but after enough money is invested, perhaps throttle back the usage of the dividend to half.  Then with the other half, reinvest it back into the dividend stock.  This way the amount would continue to grow even after you stop investing earned income into it.

Dividend Stream Start

So far, this site has $100 saved up for investing.  At 5%, that would only give out $5.00 a year.  Does sound  like much, but it could buy a few cheap games for and Apple iPod, or perhaps materials for a cheap experiment.  Still, we’ll wait until we have $500 to $1,000 saved up before we invest it.  If we get $1,000 at 5%, that would yield $50 a year and while not a lot, it would enable us to do a few cool things.  Once we get $10,000 saved up, then the dividend stream could provide $500 a year, and that would enable us to do some pretty cool things monthly!

At his point in time, we can just dream about the investments that we can purchase, but really we’ll have to wait until we have enough to invest before we take the plunge.  Still it is fun to dream.

100dollars

Thanks for reading,

~D

 

AIG Update

AIG is finally out from beneath the weight of being owned by the United States Government!

AIG has also simplified their business model to refocus primarily on insurance, thus in the process selling a lot of non-core businesses that they owned.

Even though they are half the size of what they were the stock decreased by over 10 fold from that same high, so using a very simplistic look and feel approach, it should at least double by the end of 2013.  But so far, it hasn’t risen much, what gives?

All the pistons should be rolling, but this stock hasn’t started the rise that I expected, was I wonder in my assessment?  Or will it just take a while for everybody to believe in this stock again?  Now granted that I wrote my piece on AIG for a future investment and not a short-term trade, but I really expected to see a bit more of a rise by now!  If you want to read my original article, check out “Is AIG The Stock For The Future“?

I listed my expectation in the above article, with particular emphasis on “My plan is simple, buy a $1,000 worth of shares, and hold it for 5 to 10 years and hope that it increases 500% to 800% (or more) over a 5 to 10 year time frame!”

So I believe that the lights are still green on this stock, but the real catalyst will probably be the moment that they reinstate their dividend again.  A second boost could be once they get their credit rating raised.

This stock it beginning to look a bit more like a long shot, but at the same time it has such potential and the fact that they are in the insurance business makes it a huge candidate for a comeback!

AIG

What the chart looks like the one above, it seems like the company might be a good speculative play.

Disclosure:  Both my son and I are long on this stock.