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What other tech stock to consider?
- Thread starter Sanny
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Xepa777
Banned
General thought: when thinking of diversification, I think it's important to think of diversification across entire asset classes. (1) Real estate (when Giga Texas was announced my mom bought 2 properties within 10 minutes of it and both have appreciated over 60% in the last 7 months, I also think that proximity makes it fairly recession proof), (2) owning physical gold bars, (3) cryptocurrency, and (4) other assets of scarcity.
I find QYLD highly amusing as a ETF on Nasdaq covered calls. No idea how that works and it's probably a bad idea, but the yield looks insane at 11%.
I find QYLD highly amusing as a ETF on Nasdaq covered calls. No idea how that works and it's probably a bad idea, but the yield looks insane at 11%.
If you're looking for high yield, buy FSK. Yields 12.71%. The similar stock that I like better is ARCC which only yields 8.92%.
And yes, diversifying across asset classes is a great idea. And I agree that buying actual real estate is the way to go, it is just a pain in the butt to manage (it is a mini-business).
Tes La Ferrari
Active Member
Interesting. How safe have you found the dividend to be ?
I wonder if there’s a place online where one can check on the Historical reliability of a dividend of a given stock.
I have a small basket of four of these kinds of stocks (ARCC, ORCC, FSK and GBDC). ARCC I've held for almost three years.
I used the finance.yahoo.com site to look at dividend history. Just look up any stock, click the Full Screen portion of the small graph to see a full screen version of the historical graph and select last 5 years. All of them have paid regular dividends without missing a beat (ORCC was only formed a few years ago).
These companies loan money to mid sized private companies (mid sized meaning revenues in the $200M/yr range). Like a bank loan, they take senior debt positions. If a portfolio company does go bankwupt, they do a work out, and generally come out whole.
My basket took a stock value hit during last year, but it is back to break even now. Meanwhile I've been collecting about 9.5% dividends on average. Like all asset classes, these companies were a bargain at various points last year.
Only ARCC was around during the 2007/2008 recession, but they paid dividends through that period without a miss. Just don't panic sell!
jeewee3000
Active Member
Hi all, I'm considering taking a position in ARK's Genome Revolution Investment fund (ARKG) after reading up on the subject, but apparently the fund has tripled in the last year or so and is around ATH.
Following logic similar to TSLA, I'm thinking: just buy in now and hold for five years at least.
However, first I'd like to ask if anyone here has been following this fund / investment space more closely than I the last couple of months and if he or she expects a substantial in the coming months. Thanks in advance.
Following logic similar to TSLA, I'm thinking: just buy in now and hold for five years at least.
However, first I'd like to ask if anyone here has been following this fund / investment space more closely than I the last couple of months and if he or she expects a substantial in the coming months. Thanks in advance.
I bought in around $38 and I think it's the next big thing after our energy transition. I'll be holding for at least 5-10 years. Have you seen this recent Solving the Money vid?
Do you know of a site somewhere to get a list of stocks (or etfs) sorted by yield? Those yield levels seem almost too good to be true. At 10% plus, you could retire fairly comfortably just on 10% yield and maybe $1.5 million given dividend are, I believe, taxed as qualified dividends rather than ordinary income if you've held the stock for any length of time. I suppose that's getting off topic though?
Edit: Looking at those 4, they're low growth or negative growth over their lifetimes. Which, I suppose is to be expected on a high dividend stock. If you're making 10+% on it per year, any actual underlying growth is a bonus.
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Yes, expect no growth on the underlying stock price, all yield.
There is always risk. While these 4 companies appear to be well run and my financial advisor keeps in touch with the principals of the firm, checking credit quality often, you never know what disaster lurks. It is the same with all investments.
Edit: I just checked my statements, and GBDC, FSK and ORCC dividends show up as qualified dividends, while ARCC shows up as non-qualified. Am checking to see why.
I recently bought some ARK funds. I like ARKK because it is more diversified (after coronavirus, who knows, maybe investor sentiments on genomics will cool). I wouldn't worry about the ATH - we are in a rising stock market and will likely be so for the rest of the year.
corduroy
Active Member
JRP3
Hyperactive Member
so to get in on this I would need to buy Peridot stock? Not that familiar with how SPACs work.
also, anyone familiar enough with Li-Cycle to know if they have more upside than ABML?
bkp_duke
Well-Known Member
SENS is on fire this AM. I thought my $5 covered call was safe as of end of last week, but that might not be the case!
Ouch, it broke though $5 like paper. Will it stay though? Was there good news?
bkp_duke
Well-Known Member
I'm up 220% since purchase 6 weeks ago, so I won't cry over spilt milk, and might just buy back in if the shares are called away.
I can find nothing at all news wise. I don't follow WSB, is this now a targeted stock for them?
It's showed up on a few biz rag lists of "Here's what those goofy redditors are doing now" but when I searched WSB I couldn't find much. They have had a couple of DD posts on /r/pennystocks though.
corduroy
Active Member
There is a lot to this subject, but the very basics are, you can either buy:
PDAC: Shares. Just like regular shares, will be converted to new ticker after the merger. Refunded up to NAV price of $10 if merger doesn't happen. So if you paid $15 a share, $5 is at risk.
PDAC/WS: Warrants. Similar to options. Cheaper, more leverage, but more risk. You can exercise after merger for the warrant cost + $11.50. 100% risk if merger fails. You can also trade the warrants without exercising.
PDAC/U: Units. A combo of 1 share and a fraction of a warrant, in this case 1 share and 1/2 a warrant.
Nothing terribly interesting that I can tell. A blurb about participating in a healthcare conference, but that seems pretty common for such companies. My $8 calls for this week might not be safe, but I'll shed tears of joy if they call away my shares at $8.
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