Tag: BEN

The Worst Mistake You Can Make as an Investor

by Fred Fuld III

Do you know what the biggest mistake you can make as an investor? Selling too soon. Just because you have a great profit on a stock, doesn’t mean you should sell it, assuming you are a long term investor and not a trader.

I have many examples of selling too soon. Here are just a few.

When I was in the financial services industry many years ago, I was selling a lot of the Franklin Municipal Bond Funds and Franklin GNMA Funds to my clients.

I went to visit the Franklin Mutual Funds headquarters (the company was in its old building at the time, and is now called Franklin Templeton) to do some due diligence, and meet with the broker liaison at the company.

When I was given a tour of the place, I noticed that walls were being knocked down, four employees were sharing a small office designed for one person, and cables were literally being run down the hallways by installers right in front of me.

My first thought was “Wow, this company is growing like crazy. I should check and see if Franklin Resources (BEN) is publicly traded.” It was, on the Pink Sheets. (This was way before it was traded on the New York Stock Exchange.) I bought a couple hundred shares at about $7 per share, and it shortly rose to $8.

Also, at that time, I just bought a rental property. I thought at the time that I should probably sell the Franklin stock in case I needed the funds to do upgrades on the property, plus I had just made a 14% profit in a short period of time. I actually didn’t need the funds for the down payment since I bought the property for nothing down (that’s another story I will write about eventually).

Since then, the stock has had ten stock splits. If I had just kept the stock and forgot about it, my $1400 original investment would now be worth around $542,000.

I have another example. I had 100 shares of Boston Beer Company (SAM) that I held in the form of multiple certificates on one share each (another story). I had paid about $30 a share for the stock back in 2009.

The next year, it rose to $90 a share. I thought that tripling my money in such a short period was a pretty good return, actually a fantastic return, so I thought, why not take all these certificates in to my broker and liquidate them.

While I was in the brokerage firm and one of the representatives was preparing a receipt for me including making copies of every certificate, another representative came over and said “What the hell is with all these certificates?”

When he was making these rude comments, I seriously considered picking up my certificates, and leaving, but I didn’t, unfortunately. I wanted to take my profit. The stocks eventually traded over $1000 a share back in 2020 and 2021. The stock is now trading over $350 a share, still more than ten times my cost.

I could tell you one more story about Apple (AAPL) stock, but it would make you sick. It makes me sick even to think about it.

The point that I’m making is that the dollar amount of profit and the percentage amount of profit you have in a stock is irrelevant. If you believe in the company, there is no reason to sell it, unless you are very desperate for money. And if you are that desperate, see if you can get by with selling half.

Obviously, there’s a chance of holding on to losers, and not getting out soon enough. Maybe you lose $5,000 or $10,000 on a stock that goes to zero. But it’s the big long term winners that pay for all those losses, and still provide huge returns.

The best way to tell if you should sell a stock is to imagine that you didn’t own the stock but you have the money to buy it. Would you buy it now? If the answer is yes, hold on to the stock. If the answer is no, then maybe it is time to sell.

Disclosure: Author owns AAPL and SAM.

Stocks Going Ex Dividend in January 2024

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

Franklin Resources, Inc. (BEN)1/2/20240.314.17%
Campbell Soup Company (CPB)1/3/20240.373.39%
Cisco Systems, Inc. (CSCO)1/3/20240.393.11%
Dollar General Corporation (DG)1/8/20240.591.82%
General Mills, Inc. (GIS)1/9/20240.593.54%
Oracle Corporation (ORCL)1/10/20240.401.51%
Cracker Barrel Old Country Store, Inc (CBRL)1/18/20241.306.45%
Caterpillar, Inc. (CAT)1/19/20241.301.77%
Dell Technologies Inc. Class C (DELL)1/22/20240.372.01%
Clorox Company (CLX)1/23/20241.203.37%
Krispy Kreme, Inc. (DNUT)1/23/20240.0350.95%
Scholastic Corporation (SCHL)1/30/20240.202.15%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author did not own any of the above at the time the article was written.

What’s the biggest mistake that stock market investors make?

by Fred Fuld III

The biggest mistake that investors make is selling too soon. If you have invested in a great company, and you have a decent profit, there is no reason to sell just because you have made money on it. Let me give you a couple examples of mistakes I have made so that you can learn from them.

Many years ago, when I was in the financial services industry, I was selling a lot of the Franklin Municipal Bond Funds and Franklin GNMA Funds. I went to visit the Franklin Mutual Funds headquarters (the company was in its old building at the time) to do some due diligence, and meet with the broker liaison at the company. When I was given a tour of the place, I noticed that walls were being knocked down, four people were sharing a small office designed for one person, and cables were literally being run down the hallways by installers right in front of me.

My first thought was “Wow,” this company is growing like crazy. I should check and see if Franklin Resources (BEN) is publicly traded. It was, on the Pink Sheets. (This was way before it was traded on the New York Stock Exchange.) I bought a couple hundred shares at about $7 per share, and it shortly rose to $8.

Also, at that time, I just bought a rental property. I thought at the time that I should probably sell the Franklin stock in case I needed the funds for the property, plus I had just made a 14% profit in a short period of time. I actually didn’t need the funds for the property down payment since I bought the property for nothing down (another story).

Since that time, the stock has had nine stock splits based on my calculation. If I had just kept the stock and forgot about it, my $1500 original investment would now be worth over $451,285, by my estimation, even after the stock dropped from $58 per share down to $21 per share over the last six years.

By the way, this extremely high return does not even include the dividends that I would have received over the years, which would obviously have boosted my return even higher. The stock currently yields over 5% right now.

I have another example. I had 100 shares of Boston Beer Company (SAM) that I held in multiple certificates. I had paid about $30 a share for the stock back in 2009. The next year, it rose to $90 a share. I thought that tripling my money in such a short period was a pretty good return, actually a fantastic return, so I thought, why not take all these certificates in to my broker and liquidate them.

While I was in the brokerage firm and one of the representatives was preparing a receipt for me including making copies of every certificate, another representative came over and said “What the hell is with all these certificates?” When he was making these rude comments, I seriously considered picking up my certificates, and leaving, but I didn’t, unfortunately. I wanted to take my profit. The stock is now trading over $643 a share. My original $3,000 would now be worth $64,300 in just one decade.

I could tell you one more story about Apple (AAPL) stock, but it would make you sick. It makes me sick whenever I think about it.

Anyway, the point that I am making is that the dollar amount of profit and the percentage amount of profit you have in a stock is irrelevant. If you believe in the company, there is no reason to sell it, unless you are very desperate for money. And if you are that desperate, see if you can get by with selling half.

Yes, you may read about the mistakes of holding on to losers, and not bailing out early. Maybe you lose $5,000 or $10,000 on a stock that goes to zero. But it is the big long term winners that pay for all those losses, and still provide huge returns.

Here is the best way to tell if you should sell a stock. Imagine that you didn’t own the stock but you have the money to invest in it. Would you buy it today? If the answer is yes, hold on to the stock. If the answer is no, sell it.

Disclosure: Author owns AAPL and SAM.

Stocks Going Ex Dividend in March 2019

by Fred Fuld III

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.

Rocky Mountain Chocolate Factory, Inc. (RMCF) 3/4/2019 0.12 5.55%
Southwest Airlines Company (LUV) 3/5/2019 0.16 1.10%
QUALCOMM Incorporated (QCOM) 3/6/2019 0.62 4.81%
Kimberly-Clark Corporation (KMB) 3/7/2019 1.03 3.53%
Dunkin’ Brands Group, Inc. (DNKN) 3/8/2019 0.38 2.15%
Bed Bath & Beyond Inc. (BBBY) 3/14/2019 0.16 3.94%
Nasdaq, Inc. (NDAQ) 3/14/2019 0.44 2.02%
Las Vegas Sands Corp. (LVS) 3/19/2019 0.77 5.19%
Portland General Electric Company (POR) 3/22/2019 0.363 2.97%
Franklin Resources, Inc. (BEN) 3/28/2019 0.26 3.28%
Wolverine World Wide, Inc. (WWW) 3/29/2019 0.10 1.04%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists HERE . Most of the lists are free.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.