Trying to find dividend stocks
I'm at a point in my life where I regret NOT investing more, sooner, and where I want to maximize my investments quickly. Well, at least I want them to grow, and without the problems that I've run into before.
You see, my first real exposure to investing was being told, about 11 years ago, to look into a company called Sharebuilder. I wasn't able to buy 100 shares of anything at the time, but I could invest $100 a month. But I didn't have a plan, and I picked some investments that didn't turn out so well. Some did, and my 'plan' became "Keep investing and wait".
Now, though, I've been doing more research, and I've got a new plan. Right now, I'm searching for good dividend stocks that will help grow my holdings. And I found one that I really like - Great Northern Iron Ore (GNI). I ran a search on stocks that allow automatic investments, with a dividend greater than 10%, Beta less than 1, and P/E ratio less than 21x.
I chose those, because I want BIG dividends! I didn't want to pay a huge amount, and if I change my monthly auto-invest, I want to pick up at least one share a month. And, I'm still in a learning phase, so this helped me understand just what Beta means (it's the potential volatility of a stock, in case you're new, too - lower is less volatile). To recap - high dividend, low volatility, moderate cost, and the ability to set it and forget it.
GNI holds and leases property to miners, in Minnesota. They've paid out dividends for the past 4 years - nice solid dividends. Earnings per share is down, but by less than the industry overall. Some of the others that turned up didn't fit with my overall plan, and by excluding those, my eye was drawn to GNI.
For my plan, this will be a good way to help build my investments. I want the dividends to be re-invested, and I plan on holding this stock for a while - though I might be inclined to sell if it either increased in price by 25%, or dropped about 8%. (I don't have a position, yet, but am planning on purchasing early next week.)
If you're just starting investing, and don't mind doing some research yourself, look at setting up an automatic investing account, and learn about the terms that you'll see when looking up a stock. Consider starting with stocks that historically pay out dividends, and re-invest those, as this will help you build your portfolio over time.