Effective yield >11% for PM

[TN_INVEST]

Don't you just hate it when one of your stocks increases it's dividend by 20%?

My effective yield on Philip Morris (PM) has now eclipsed the 11% mark.

I'm not boasting, I'm just trying to share some of my excitement. Hopefully it'll rub off on somebody and they too will see that the stock market isn't too "risky."

 

[jimnjana]

I quit trying to figure out the effective yield on MO which I first bought pre split off of KFT and PM.

 

[TN_INVEST]

I quit trying to figure out the effective yield on MO which I first bought pre split off of KFT and PM.

I know what you mean.

I too have owned these stocks since they had the spin offs. Fortunately I own them in an IRA and won't have to worry about actual cost basis if/when I ever sell them.

 

[clifp]

I own 2/3 of the stocks in the Morningstar Dividend investors portfolio. Sadly PM is part of the 1/3 of that I don't own. I wish it would get cheap enough to buy, but of course when the boost a dividend by 20% it has positive impact on the stock price.

Congrats to you two, for what looks like a very nice investment for a retiree.

 

[brewer12345]

My soul does not sell for that cheap. YMMV.

 

[TN_INVEST]

My soul does not sell for that cheap. YMMV.

Thanks for sharing this insightful comment.

 

[clifp]

My soul does not sell for that cheap. YMMV.

I consider PM and Altaria MO, which I own, to be socially responsible investing, because they both prevent over population. In fact there is some evidence that smokers due to lower life expectancy help out the finances of Social Security and Medicare. Not to mention that cigarette taxes are important source of revenue for the states.

 

[grumpy]

I first bought MO years ago, back when the huge legal judgement knocked the stock price down to $19. I have reinvested the dividends since then and I have substantial holdings in KFT and PM as a result of the spin offs. I have sold shares of these three from time to time that more than offset my purchase costs. Therefore, if I try to calculate my yield on cost, I get an infinite result!! I'm not complaining, just commenting.

 

[Nords]

I own 2/3 of the stocks in the Morningstar Dividend investors portfolio. Sadly PM is part of the 1/3 of that I don't own. I wish it would get cheap enough to buy, but of course when the boost a dividend by 20% it has positive impact on the stock price.
Congrats to you two, for what looks like a very nice investment for a retiree.

You should tell them your yield on the first shares of Intel stock that you still hold!

 

[arebelspy]

You should tell them your yield on the first shares of Intel stock that you still hold!

please don't.

 

[clifp]

You should tell them your yield on the first shares of Intel stock that you still hold!

Well since you ask the lowest price Intel shares are $.6925 so with a annual dividend of $.84 that gives a yield of 121%. Needless that is my best investment ever.

Arebelspy don't feel bad in 30 years after you've been retired for many years you can break about the Vegas house that you bought for $75,000 that are worth over a $1 million.

 

[TN_INVEST]

Well since you ask the lowest price Intel shares are $.6925 so with a annual dividend of $.84 that gives a yield of 121%. Needless that is my best investment ever.

Arebelspy don't feel bad in 30 years after you've been retired for many years you can break about the Vegas house that you bought for $75,000 that are worth over a $1 million.

Nice. I like it.

I thought stocks were "risky" and thought everybody that owned a house in Vegas was under water (at least that's what you hear and read on the news)?

 

[arebelspy]

I ... thought everybody that owned a house in Vegas was under water (at least that's what you hear and read on the news)?

Oh we are. Hopefully not in 30 years though.. That's a scary thought, no recovery after 30 years.

(Especially since the mortgages would be paid off )

 

[Texas Proud]

Well since you ask the lowest price Intel shares are $.6925 so with a annual dividend of $.84 that gives a yield of 121%. Needless that is my best investment ever.

Arebelspy don't feel bad in 30 years after you've been retired for many years you can break about the Vegas house that you bought for $75,000 that are worth over a $1 million.

I was thinking my mom's Exxon would be better... but I was wrong... it is only 85% or so..

 

[harley]

I bought a bunch of my Apple stock at $9.90. It's currnetly worth $400.00. So let's see...that's an effective yield of...still 0%. Darn it.

 

[TN_INVEST]

I bought a bunch of my Apple stock at $9.90. It's currnetly worth $400.00. So let's see...that's an effective yield of...still 0%. Darn it.

That sucks big time.

Hang in there, you/we might be getting a $5 or $10 a share dividend soon.

I've had AAPL for a few years myself. I ain't complaining, but my profit ain't quite as much as yours.

 

[Dawg52]

I bought a bunch of my Apple stock at $9.90. It's currnetly worth $400.00. So let's see...that's an effective yield of...still 0%. Darn it.

I'd dump it and take my lumps.

 

[slazenger]

Don't you just hate it when one of your stocks increases it's dividend by 20%?

My effective yield on Philip Morris (PM) has now eclipsed the 11% mark.

I'm not boasting, I'm just trying to share some of my excitement. Hopefully it'll rub off on somebody and they too will see that the stock market isn't too "risky."

I know I would. Sounds like a desperate move on their part. Does that come with a guarantee that the share price will at least stay even?

 

[TN_INVEST]

Does that come with a guarantee that the share price will at least stay even?

I never hope for guarantees in stock prices. Declines in the price are part of the game, as are advances (the advances happen about twice as often as the temporary declines and the way I look at them are merely ways of making sure the shares of stock are returned to their rightful owners).


With an 11% effective yield (and a 3 year dividend growth rate of >11%), I don't have the brass to ask for the price to always stay even or go up.

 

[Sandhog]

I consider PM and Altaria MO, which I own, to be socially responsible investing, because they both prevent over population. In fact there is some evidence that smokers due to lower life expectancy help out the finances of Social Security and Medicare. Not to mention that cigarette taxes are important source of revenue for the states.

Not to mention Federal and Local taxes. I paid $12/pack in NYC but if I go to Long Island, $10/pack and if I cross the river to Jersey, $8.50/pack. It's lot cheaper to shop in Jersey than NY including gas, clothing and no bottle deposits. However, property taxes are same as long island.

 

[Koolau]

Not to mention Federal and Local taxes. I paid $12/pack in NYC but if I go to Long Island, $10/pack and if I cross the river to Jersey, $8.50/pack. It's lot cheaper to shop in Jersey than NY including gas, clothing and no bottle deposits. However, property taxes are same as long island.

I wonder what the break-even point is for lowered life expectancy vs cost per pack. i.e., the more you smoke, the less time you have to plan for retirement. Could be an even better strategy than the bacon diet.

 

[Sandhog]

I wonder what the break-even point is for lowered life expectancy vs cost per pack. i.e., the more you smoke, the less time you have to plan for retirement. Could be an even better strategy than the bacon diet.

I think stress reduce life expectancy more than smoking and bacon diet. I love bacon and still smoke but no longer have a stress of ex-wife nagging. Therefore, I say my life expectancy went from 75 to at least 80.

 

[Koolau]

I think stress reduce life expectancy more than smoking and bacon diet. I love bacon and still smoke but no longer have a stress of ex-wife nagging. Therefore, I say my life expectancy went from 75 to at least 80.

Let it be so!!

 

[eridanus]

Figuring out a yield on the initial cost basis is meaningless. You can sell or buy it any day of the week -- the yield is what it is based on the current market price.

Example: You own $10,000 of PM in an IRA. I buy $10,000 of PM in an IRA. We have the same dividend yield. If you sold your $10,000 of PM and bought $9993 of MO, you'd have a better yield.

 

[TN_INVEST]

Figuring out a yield on the initial cost basis is meaningless. You can sell or buy it any day of the week -- the yield is what it is based on the current market price.

Example: You own $10,000 of PM in an IRA. I buy $10,000 of PM in an IRA. We have the same dividend yield. If you sold your $10,000 of PM and bought $9993 of MO, you'd have a better yield.

It simply makes me feel good to know that my investment is paying off.

I got me some of the MO stuff, too.