For a while I have been keeping an eye on The Walt Disney Company with a ticker symbol $DIS, I have been a fan of Disney for a long time and I am considering starting a position and growing it throughout the years, I have always been a fan of media companies and I own shares of Netflix, Amazon (since they own Hulu) and also distribution channels like Comcast, not only do they have excellent branding power but they also have several assets that have caught my attention, today I am going to analyze this company and I will tell you the reason why I will buy or not buy.
As always, the information shared via this channel is for entertainment purposes only, always buy stocks based on your own opinions and research, use this information as simply information and facts but always remember that buying and selling stocks comes with risk, never buy stocks based on someone else’s opinion.
Ok, now that we have that out of the way, lets take a look at this amazing company and we will figure out together why would it be a good idea to invest in them or not, the stock market can be a very complex machine and simply having a profitable business does not always mean that your share prices will go up or down, a company can report great earnings and stock prices could go down, some companies lose millions of dollars every quarter and share prices go up, the value of a stock is truly based on what the public things the shares are worth, this is the reason why I take my time to research and study each company before buying any shares.
So let’s talk about one of the reasons why I have decided to consider buying shares of $DIS, as I mentioned before, I have traded Netflix and Amazon not only because they are great companies, but because both of these companies do not pay a dividend, I am a big fan of dividend investing and when a company does not pay a dividend I prefer to to buy them and sell them as I hit a certain percent of profit, the reason for this is because if a stock does not pay a dividend I need to get profits from it and trading them allows me to do so, now in the case of a company like Disney, they actually do pay a dividend, as of now they are paying a dividend of 1.5% which is great for a growth company. For me, it is critical to receive a dividend payment since I plan on holding the company for a long time or even a lifetime. The fact that they are a dividend growth company is a major plus for me.
Here are some facts of the Walt Disney Company stock
Today is February 19th and it is 7:45 pm Eastern time, share prices right now are going for $113 dollars, they have a market cap of $169 billion dollars and they have a P/E Ratio of 15, in my opinion their Price to Earnings Ratio is relatively low for a growth company. Also, they reported a revenue of $15 billion dollars on the last quarter and their profit margin is almost 20% which is great, Disney is an extremely profitable company with the opportunity of even more in the future.
Below is Disney Stock Price Chart (Past 5 years)
Let’s take a look at their 5 year price chart, as you can see their stock prices have gone up the last 5 years, in a way this would be a con since you are basically paying top dollar for their shares, of course no one wants to ever pay the most expensive price and if you ran in to the opportunity of getting shares at a lower price then that would be great, however in some cases it is not really a bad thing to pay a fair price for a good company like Warren Buffett would say, truth of the matter is that this is a growth stock and we are going to show below where the opportunity for bigger profits comes into play.
What Assets Does Disney Have?
As you noticed, the price chart is showing that Disney is currently trading at a relatively high valuation, we mentioned before how many other factors can move prices higher or lower and here I will list their assets that in my opinion will move the share prices higher. Not only does Disney has a very recognizable brand that is noticeable all around the world, but they also own assets like The Disney Studio, Disney Media Networks (ABC, ESPN), Marvel Entertainment, Disney Resorts and many, many more. This is an extremely diversified company with many, many sources of revenue making them one of the most profitable companies in the world.
Is Disney a Good Investment?
Here is the bottom line, I mentioned before how I invest for Dividends and growth and as much as I love trading some speculation stocks I also like investing in companies that have maintained profits through out the years, I love companies like this where they do not only have a small line of products but they also are invested in other companies and have other sources of revenue, this company is huge and has tons of assets and I do not see them going anywhere in the next 5 to 10 years, plus while I wait for share prices to go up I will collect their dividend payments, there are no guarantees in the stock market but when you look at a company and all of their facts it can guide you into making the right decision.
What is their next dividend date?
The next ex-dividend date will be on July 5th 2019 and they will be paying $.88 cents per share on July 25th. As you can see, they have been paying dividend for many, many years. On top of that, their dividend amounts have been steadily increasing as well no matter what the share prices are, this is a great opportunity for dividend growth investors to invest in a company that will have a really good chance of increasing their revenue and profits, not only do they keep investing their profits into great other amazing assets but they also are trying to innovate, they have been talking about starting their own streaming service and using the media companies that they own to distribute their content, this will be competing directly with Netflix and Comcast and will likely be a very profitable venture.
How can I buy shares of Disney?
If you would like to start investing in the stock market and do not have a stock broker I highly recommend that you sign up for a Robinhood account, they allow you to buy and sell stocks at zero commission fees, unlike other brokers that charge you $5 or even $10 dollars every time you buy or sell shares, Robinhood does not charge you a single penny, on top of that you can start investing with only a few dollars, open an account today and get a free stock!
Good afternoon and welcome to Investing4profits.com, if you have been watching the stock market for the past few weeks you have probably noticed just how volatile stocks have been, one day we get bad news and the stock market goes up, the next day we get good news and stocks go down… if you are a day trader this is heaven since volatility brings opportunities to make money, however if you are a long term investor it can be painful to see your stock market portfolio go up and down.
The question is, do you think we have finally hit the bottom and is it safe to invest in stocks right now? Well the answer to that is that nobody really knows and as everybody will tell you, I am not a financial adviser and you should do your own research before buying stocks, however there are several clues that will allow us to make decisions and to invest so we can all make money.
This article from Seeking Alpha got me thinking if this is really truth or not:
Now, before we continue I wanted to ask you if you already are invested in the stock market, if you are interested in investing in stocks and etf’s I recommend that you use the Robinhood app, as always make sure that you understand in what you are investing and do it at your own risk, however I do like the app and I use it all the time, if you sign up with my link I get a free share of a company that they chose and you will get a free stock as well, you can sign up for the Robinhood app here.
Has the stock market bottomed?
So here is my personal opinion, as you might have noticed, when the news about COVID-19 were announced, the stock market plummeted very fast, for almost 3 weeks every single stock kept on dropping and hitting new lows, the drop was so fast and aggressive that I personally was down over 60% in my portfolio, this is coming from someone who has a relative safe, blue chip dividend portfolio. The drop continued and even though things have moved sideways I am still down 30% so even though people say that the stock market has been going up the reality is that the market is slowly reacting to the news, good or bad.
In this case, what I am actually doing is being very careful how I deploy my capital, I have been averaging down on stocks that I believe will go up in the next few months and I am collecting dividends as well, I am only buying stocks when things go even lower and on days that the stocks rally I do not buy any stocks at all to protect myself from new lows.
Another strategy that I have implemented is day trading stocks in small amounts, by the end of the day my position is cash and I analyze the stock the next day to find a good entry and exit point, so far I have traded companies like $UNH, $MSFT and $AAPL. I only trade stocks that are underpriced and take profits on the daily basis.
Now, as I mentioned before, it is possible that the market could go lower however what I believe will happen is that the market will stay flat for at least a couple of quarters, it will take several months of profit growth for the stock market to start seeing highs again, while this happens I highly recommend that you either swing or day trade or invest and collect dividends.
Bottom line is, the stock market can be very unpredictable and it is very hard to predict if stocks will go up or down, all we can do is analyse and speculate, however it never hurts to have a plan and take action. First of all I always make sure to have an emergency fund and cash, that way I am not forced to sell stocks at a loss. I rarely sell stocks at a loss and the reason why I can do that is because I do not invest every single dollar that I have, I usually allocate an amount of money for a rainy day.
With this in mind there are 2 things that you can do if stocks go lower. The first is to wait and be patient… it is as simple as that. If the fundamentals are there for the stocks that you picked then all you have to do is wait and be patient, your stock will go up sooner or later and you will be able to make money.
If you do not want to invest additional cash the second thing that you can do is sell stocks that have gone really high and re-invest that money in the stocks that are much lower, this will allow you to average down and make money once the stock recovers.
I hope this information was useful to you, if you like this article please share it with your friends and family and please make sure to bookmark Investing4profits.com and come back for more soon.
If you are not invested in the markets and want to start today, open your Robinhood account today and get a free stock, link below:
If you look at the $SPY chart above, you might notice one thing, the Stock Market is at all time highs, if you are a new investor you might want to approach the market with a good strategy or you might find yourself losing money this year, now this does not mean you should not invest, anyone who is able to should invest in the stock market however you need to have a strategy because in 2020 it is possible that the stock market might be in a bubble that could be close to popping.
Here is a quick update of my Robinhood stock market portfolio, as of now I am up almost 26 percent since November 2017, the key to achieving these gains is a combination of buy and hold stocks plus a bullish market, it is a small portfolio and it is only a small part of my overall assets however I do plan on growing this to over 100k.
Here is a list of my current stock positions:
Aurora Cannabis (Down almost 60%)
As you can see, my portfolio is currently a bit over diversified however note that some of these stocks are setups for swing trades, for example with $ACB I have bee averaging down and once I hit a good return I will sell these shares, I also have some Crypto positions that I will be sharing on another post, so far I am really happy with the portfolio performance and dividend payments are coming in every months specially since I do hold a few REITS.
Today I came across this thread on Reddit regarding the worse stocks picks for 2019 and it really shows how painful the losses were for Aurora Cannabis investors, this was a tough year for $ACB and it really shows just how volatile the markets can be, I am personally down 50% and it is easy to doubt your picks and it’s easy to considering selling at a loss, here is the thread below:
When I pick a stock, I am not just buying based on the stock price or any specific valuation method, I pick my stocks based on my vision on what the future could be for a company, here is for example the reason why I picked Aurora Cannabis, first of all I consider that the industry will continue to grow in the upcoming years, you can say that they are part of the companies that are in a way pioneers on the legalization of weed and they are some of the first to market. I personally consider that they have a solid business plan and that there is enough demand to make this a viable, profitable business.
When I pick a stock this is what I invest in, I see their numbers grow every year and they continue to develop new products and strategies to bring their products to market, they offer unique products that people want and they are positioning themselves just to be one of the main providers of cannabis and to me this is what I bought in to the idea that demand will continue to grow and there will be more products that derived like edibles that will allow them to grow their revenues.
Why am I down 50% you may ask? Well its simple, I got in a bit late and paid a high price for the stock, however I have continued to invest and that has allowed me to average down and buy shares at lower prices which for me is fantastic, once again I am not buying shares to trade and make a little profit, I am buying shares now so that I can see this company grow and make millions of dollars while share prices go up, I am looking at a 5 to 10 year outlook which may or may not allow me to collect a solid return on my investment.
So why do people lose money when they invest in the stock market? Very simple, they come in looking for that quick dollar and they are not investing in what they believe in, the buy shares and look to make that quick 5 or 10 percent return to then get out and move on the the next one, the problem with this is that things do not go their way and most of the time people are impatient and they sell their shares at a loss.
I will not be selling my shares or Aurora Cannabis any time soon nor will I sell at a loss, I will continue to buy cheaper and cheaper shares and I will continue to invest small amounts and hold them long term, I am looking for that 10x return 5 or 10 years from now, I believe that the industry will continue to grow and the profits will be there for those who stayed with the company and were patient.
Should you do the same? NO, you need to do your own research and invest based on your own strategies and ideas, you need to buy shares at your own risk and only invest money that you can afford to lose.
If you have never invested or traded stocks and would like to start I use Robinhood as my main stock broker, if you sign up today with my link you and I will receive a free stock.
Did you know that you can start investing in the stock market for free? Most stock market brokers charge a fee for every stock that you buy and sell, with time this can be really expensive, with the Robinhood app for Android and iPhone you can start buying and selling stocks for FREE.
To signup click on the link below from your smart phone and download the app:
Open your Robinhood account today and receive a free stock, start making money in the stock market by investing and watching your money grow!
If you have questions or would like help setting up your account leave a comment and I will be happy to help you!
Why would you invest in the Stock Market?
Very simple, the power of compound investing! Have you ever tried building a business to just find out that it is very, very hard to be successful and make money at it, it takes a lot of money for you to build a profitable company, investing in the stock market allows you to be the owner of the company without having to do any of the work, all you need to do is research which companies have good potential and buy share of them, with Robinhood you can buy and sell shares for free.
This is why I like investing in the Stock Market
First of all, this is one of the most liquid markets in the world, when you buy and sell any item it takes time and effort to find buyers, in the stock market you can buy and sell shares instantly, the theory of buying low and selling high applies here the same way that it applies to other markets, the only difference is that here you can buy something for a specific price and then sell it in minutes for more money, simple as that.
Compound Interest is a beautiful thing
When wast the last time that you purchased anything to only find out that years after it went up in price? For the most part you buy consumer items and they depreciate immediately after buying them, the only thing that you can buy that has this potential is Real Estate, however not everyone has thousands of dollars waiting in the bank to do this, with Stocks and Robinhood you can buy one or a hundred shares and grow your money based on a percentage, if you invest $10, $100 or $1,000 dollars you can see your money grow each year by a percentage without you having to start with hundreds of dollars and you can still make a lot o money, this is the power of the stock market and Robinhood, you can start investing right now with very little money and have the potential to grow your money, specially if you buy at a good price and let your shares grow through the years.
Ready to investing using Robinhood?
If that is the case, you can open an account today and if you use my link I will get small commission and you get a free share o a stock, I only recommend products that I personally use and I have been using them for 2 years with no problems, as always when buying and selling shares you have to do your own research however if you put in the time you can grow your money in no time.
Good morning everyone, been a busy few weeks for me and I have not had much time to update this website, however today I would like to discuss with you which stocks I am planning on buying the month of June 2019, as you may be well aware, there have been a lot of trade war talks and the markets are fearful which presents a great opportunity to buy stocks at a discount, I am actually happy that this happened because stocks have been going up for a while and I have been looking for a good entry point.
Now, when it comes to stocks I have a few things that I look for and I have criteria that I like to meet before adding more shares to my portfolio, if the stock that I am interested in meets that criteria then I will go ahead and add more shares that day, I am lucky enough to use Robinhoodas my investment platform because I pay $0 commission fees which is great because I can buy shares and average down if needed without worrying about any fees, here is what I look for when buying stocks, as always use this information at your own risk and only buy stocks based on your own research.
Am I paying less than my original entry point?
Does this stock pay a dividend, what percentage does it pay?
Do I like the companies business model and will they increase their revenues in the future?
Does the 5 year chart show an up trend or a down trend?
How big is my position compared to my overall portfolio ?
Is this the best value or are there other stocks that provide better value?
What do people say about the company and how innovative are they?
Which company meets this criteria right now?
So the company that I have my on right now is Caterpillar with a ticker symbol $CAT – This company has been trending down for the past few weeks which in my opinion offers a great opportunity to either average down or have a good entry point, the main reason for the stock to go down is because of the potential for a Trade War with China and other countries, the market worries that both sides will not come to an agreement and the stock has gone down since it all started, since I already had a position in my portfolio this is an opportunity for me to add more shares at a discounted prices.
Why do I like Caterpillar? Here are some of the reasons why I will be buying more shares of this stock.
They pay a good dividend which has been increased throughout the years
I am paying less per share based on the recent decline
They have a good balance sheet and they are diversified
They provide a service which has high demand and a recognizable brand
They have been in business for a long time
These are the reasons why I will be buying more shares at a lower cost than my initial entry point, I am currently investing for the long term and I can see myself holding this stock for the next 5 to 10 years, as share prices fluctuate I will collect the dividend as my position grows based on my cost.
Now, investing in companies and picking stocks comes with risk, share prices could go up or down depending on many factors, here are some of the factors that can push share prices even lower, for me it comes to a point where my position will be high enough where I will stop adding more shares, even if prices are lower, in that case I will simply wait until prices recover, in that case I will wait and collect the dividend payments until the price recovers, I never sell at a loss.
Some of the potential for this stock to drop even more are the trade war threats between presidents, growing competition and a decline in the construction industry, Caterpillar does offer other services that are not depended on just selling heavy equipment however any kind of trade tension will affect share prices.
Overall, I see this stock as a solid investment at a discounted prices that will continue to pay dividend for many years to come and I will continue to add more shares until I grow my position to a point where I am comfortable.and move on to the next stock.
What is your opinion on this topic? Do you agree or disagree, feel free to leave a comment and share your 2 cents, if you are new to investing and would like to open an account to start buying and selling stocks feel free to checkout Robinhood.