I am personally a buyer of $HBAN and really like their dividend, also the stock has not gone up as fast at the other banks which allows you to continue to invest at a great discount and good upside potential.
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!
AFLAC Inc currently has a market cap of 28 billion dollars, a PE ratin of 10 and provides a dividend yield of 2.79%
Looking at their financials, we can see that last quarter they generated over 5 billion dollars, they generated profits of over 566 million dollars and they are sitting on 4 billion dollars in cash, an amazing business in my opinion.
Ford Stock provides a 7% yearly dividend yield, stock is down this year and will it recover, is it time to buy the dip? You decide, I like investing in dividend paying stocks for cash flow, the demand for cars is there however there are changes in the industry and Ford will need to adapt.
If you are down this is an opportunity for you to average down and get more shares at lower prices, the dividend appears to be safe based on their cash flow and cash on hand.
Current Ford price is around $7.89 and has a Market Cap of $31 billion dollars.
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.
As you may be aware, this month there has been a lot of volatility in the stock market, if you take a look at the $SPY Chart you will see that it has been down for the last month, this is due to trade war tensions and the public being afraid that an economic recession might start soon, this brings a lot of opportunity to the stock market and with volatility there is always the opportunity to profit from these swings.
This month, I have been really active in my Robinhood Account (get a free stock), for the most part I am a long term dividend investor however I have seen a lot of blood on the street as Warren Buffett would say and this opportunity to profit has incentive me swing trade some of my positions to move my capital to stocks that I believe will appreciate even higher once the market stops being fearful.
So with that in mind, here are some of the transactions made in my portfolio, I consider Cash a position as well and I always have that ready to be deployed, however seeing so much opportunity has made me sell some of my positions for a profit and move those capital gains into other stocks that will have an upside in the future, I personally rarely sell any stock at a loss, I rather average down and continue to invest until I am able to obtain a return.
Now onto my latest Robinhood transactions:
Sold most of my Bitcoin position for a 100% return
Sold most of my Bitcoin Cash position for a 80% return
Sold my Litecoin position for a 30%
Sold my entire $V (Visa) position for a 20% return
The main reason for selling these shares is because I know there will be a higher opportunity to profit once the market recovers, sure these other stocks and cryptocurrencies could move up higher however I see a higher opportunity to cash out and re-invest the profits on the stocks that got hit due to trade wars between China and the US.
What stocks am I buying in August 2019?
Aurora Cannabis (highly discounted, trading around $5 dollars per share)
Ford – Dividend paying stock
As you can see, these might not be the most exciting companies however they provide a high upside potential and the money is made when there are big discounts on the market, my only stock that does not pay a dividend is Aurora Cannabis however this is a high volatility stock and I will profit once sentiment turns bullish.
What stocks are you buying right now, share your picks below or email me.