Investing for income

[MrBurns]

I know you cant give any specific advice but what are the more common stocks to look at for income.

 

[pixel]

I know you cant give any specific advice but what are the more common stocks to look at for income.

I build a watchlist of as many "serious" stocks as possible; I started actually with the All Ords. Then I make sure the table contains the latest "Yield", by which I sort descending.
Now it's taking only a little "mental legwork" to eliminate any obvious "duds".

A little Excel program (see "Dividends" at http://rettmer.com.au/TrinityHome/Services/index.htm ) shows me each coy's dividend history covering the last couple of years. But if you've identified only a handful of favourites, you can probably do that research manually too.

 

[MrBurns]

Thanks pixel, I have a watch list, it details all my failures
I'll rejig it and give it a go.

 

[MrBurns]

I build a watchlist of as many "serious" stocks as possible; I started actually with the All Ords. Then I make sure the table contains the latest "Yield", by which I sort descending.
Now it's taking only a little "mental legwork" to eliminate any obvious "duds".

You mean a watchlist on the ASX site ? Where can you include yield in the table ?

 

[tech/a]

Income production.

If I had to produce income
I would day trade both indexes and stock.
A couple of 100 k would return plenty.
If you know what your doing.

 

[MrBurns]

If you know what your doing.

I don't, so plan B is ?

 

[McLovin]

I don't, so plan B is ?

Bank deposit.

If you don't know what you're doing, I'm not sure I'd be getting into the market. You could easily have 20% wiped off even a stable income producing stock.

 

[MrBurns]

Bank deposit.

If you don't know what you're doing, I'm not sure I'd be getting into the market. You could easily have 20% wiped off even a stable income producing stock.

Thats what I was afraid of, and I dont trust "advisors"

5% here I come I guess.

 

[tech/a]

Bank deposit.

If you don't know what you're doing, I'm not sure I'd be getting into the market. You could easily have 20% wiped off even a stable income producing stock.

Plenty of ways to mitigate risk short term trading.
10000 $ 10 stock returns $ 100 / cent getting on an up move of 10c or more isn't hat difficult.
Indexes 5 x FTSE only requires $ 30 k
DAX a bit more.
SPI about the same.

 

[MrBurns]

Plenty of ways to mitigate risk short term trading.
10000 $ 10 stock returns $ 100 / cent getting on an up move of 10c or more isn't hat difficult.
Indexes 5 x FTSE only requires $ 30 k
DAX a bit more.
SPI about the same.

Fantastic WHAT ?

Would a broker be able to do that for me ?

 

[pixel]

You mean a watchlist on the ASX site ? Where can you include yield in the table ?

You need a good trading program.
The one I'm using is Market Analyser from MDS Financial. Watchlist example:

 

[Julia]

Bank deposit.

If you don't know what you're doing, I'm not sure I'd be getting into the market. You could easily have 20% wiped off even a stable income producing stock.

+1. Choosing stocks for their yield, without regard to their potential for capital loss is something I will never understand.

Mr Burns, you can get more than 6% at call in various online accounts.

If you're unsure about your trading skills, I'm not sure that this is the market in which to try them out.

 

[Boggo]

Choosing stocks for their yield, without regard to their potential for capital loss is something I will never understand.

Exactly Julia. Below is the monthly chart of TLS.
Since the high in 1999 it has paid 3.73 in dividends but lost close to $6.00 in value.
I haven't taken into account the franking credits as they are of no benefit anyway if you are losing money.
Naturally the yield is going to increase, only because the stock price is falling.
http://www.telstra.com.au/abouttelstra/investor/my-shareholding/dividends/

(click to expand)

 

[Boggo]

Example 2.
Worth having a look at the dividend yield on AJA, the first stock displayed on pixel's software pic in his post above.

Here is why the yield looks so good...

(click to expand)

 

[pixel]

Example 2.
Worth having a look at the dividend yield on AJA, the first stock displayed on pixel's software pic in his post above.

Here is why the yield looks so good...

(click to expand)

Correct, Boggo;
which is the reason I said in my very first reply

Now it's taking only a little "mental legwork" to eliminate any obvious "duds".

And at that time, I didn't know that Mr B had no idea what he was doing

btw you don't have to hold on to any stock that depreciates beyond future dividend expectations.

 

[Boggo]

Correct, Boggo;
which is the reason I said in my very first reply
And at that time, I didn't know that Mr B had no idea what he was doing

Understood pixel

 

[MrBurns]

+1. Choosing stocks for their yield, without regard to their potential for capital loss is something I will never understand.

Mr Burns, you can get more than 6% at call in various online accounts.

If you're unsure about your trading skills, I'm not sure that this is the market in which to try them out.

Thanks for the advice everyone and Julia , yes, I'm either very stupid or very unlucky, not once but twice I've sold spec stocks only to find , in one case it tripled in a few weeks after I sold and another I sold last week jumped 30% in the week after I sold, in both cases I'd held them for over a year only to see them languish and do nothing.

I think I will stick to TD's for now.

 

[Trembling Hand]

Thanks for the advice everyone and Julia , yes, I'm either very stupid or very unlucky,

Its hardly a market that makes taxi drivers, dartboards or idiots look like stock gurus with a rising tide.

Honestly did you think it was a period, ie bullmarket, that was in your favour?

 

[MrBurns]

Its hardly a market that makes taxi drivers, dartboards or idiots look like stock gurus with a rising tide.

Honestly did you think it was a period, ie bullmarket, that was in your favour?

They were tips I picked a year or more ago, yes one took off, but I sold it too soon.
I gave up on the rest and got out of everything in the last few weeks.
The last one went up 30% almost as I put the phone down from the sell order

 

[Calliope]

Over the years I have earned good income and achieved good capital return by buying equity in buildings. A good example of one of these is Cromwell.e.g.

In a tumultuous year for property and funds management, Cromwell successfully raised $91 million for the unlisted Cromwell Riverpark Trust.

This was the largest retail fund raising in Australia in 2 years and saw the Trust acquire land and begin funding the construction of the Riverpark Building, an asset with an “as if complete” independent valuation of $173 million. Monthly distributions to investors began in July at 8.25% pa.

That was in 2009. This building is at Newstead, Brisbane and is fully leased to Energex for some years. I am only quoting this as a example because subscription has closed. The beauty of this type of investment is that the interest is paid monthly and is tax deferred. However your capital is not accessible usually for 5 or 7 years when the building will be sold. You will get any capital gain, which will take care of the deferred tax.

The interest on this investment is now 8.75%, and after 2 years the valuation is $186M.