Just in time for GM's dividend increase and stock buyback!
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- Thread starter Warstud
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Just in time for GM's dividend increase and stock buyback!
Only if it's in a non taxable account.
Yes true enough. Premium paying 5.21%. Muni MM 3.32%
Treasury's interest is taxable at federal level, not at state.
Money Market is taxable by both.
South Carolina top line income tax is 7%, so yes I will pay 7% more income tax on the MM interest, but the money is available immediately if I wish to use it. If you know you don't need it - take the T-bill.
GM reinstates it’s 2023 guidance today which they withdrew at the time of the UAW strike
They are also increasing their dividend and re-purchasing stock
They also have stated the new UAW agreement is being budgeted into next year’s budget and will have no effect on earnings. (Mostly I guess)
Call me crazy but what more can you ask from the number one seller of cars for 90 years in the USA and selling at four times earnings?
It’s almost up 10% today. Let’s hope it doesn’t go down 15 tomorrow
I just read over this quick. This was my source.
https://stocks.apple.com/ALP9xb5qbQI6BFgPCEuVbQg
Yes, I like MM for now. I want liquidity.
If the market tanks, I will buy equities.
If the bond market tanks, I will buy duration.
If housing tanks, I am going to buy a second home.
If it all tanks I am converting it to gold and moving to Baja.
If the market tanks, I will buy equities.
If the bond market tanks, I will buy duration.
If housing tanks, I am going to buy a second home.
If it all tanks I am converting it to gold and moving to Baja.
There sitting on $200B in debt. I have no idea when that debt has to be rolled, or what its current yield is at. The buy back looks good. If the fed cuts rates soon the buy back will look better. If we stay higher for longer, the buy back will look stupid. If they can't roll their debt its 2008 all over again.GM reinstates it’s 2023 guidance today which they withdrew at the time of the UAW strike
They are also increasing their dividend and re-purchasing stock
They also have stated the new UAW agreement is being budgeted into next year’s budget and will have no effect on earnings. (Mostly I guess)
Call me crazy but what more can you ask from the number one seller of cars for 90 years in the USA and selling at four times earnings?
It’s almost up 10% today. Let’s hope it doesn’t go down 15 tomorrow
I just read over this quick. This was my source.
https://stocks.apple.com/ALP9xb5qbQI6BFgPCEuVbQg
I have no idea how likely or unlikely any of those scenarios are. However Buffet is raising cash, and GM is not. Might have something to do with their 4 P/E.
Now is it good for a trade - very different question. I don't follow that stock, so I don't know.
Yep ... it's already figured in . Now is the market gonna sell off after they cut rates . Thats the million dollar question . GL
JHZR2
Staff member
I hold quite a few. And collect dividends on many.
Frankly any more I don’t have the time to do endless research, and when the massive gains and runups are concentrated in like seven or so companies, with everything else flat or negative, it gives reason for pause. Especially when bandwidth to track things every hour/day is just not possible.
When things start to actually correct to a level that seems sensible to me, then I will shift a lot of funds to what I consider promising values. But what they are currently I can’t say.
You're a smart man. Nice assets and low tax burden if you hold them for a year, even though I suspect you've had many a lot longer than that. Hard to beat.
GM sells at 4 times earnings which is significant earnings per share I’m sure you know.
Hasn’t had a year in the last decade that it lost money
Seems to me a lot safer than other companies for the short term, possibility long but that isn’t my intention.
For me personally it would be nice to see it run to 40 that would give me a 25% profit
I could sell and play it too, No plan just yet because it’s safe as hell right now or was at $29 which is around my purchase price
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A question, let's say you had $400,000-$500,000 to invest after a home sale, what would you do?
My "plan" is to dollar cash average into a three fund portfolio, maybe a four fund. Whatever it will be it'll probably be 70%-80% into a 500 index. Not sure about the other 2-3 funds. Probably 15% into total bond index or maybe 5% gold, 5% bond index, 5% reits. The other 15% into either developing technologies or some sort of international index.
Problem is, I'm not sure how much monthly to contribute. And I'm not sure which brokerage firm to go with. I'm hearing M1 finance is pretty user friendly. I'm not afraid to leave everything in a 5.5% CD for ten months either, or part of it, as I wait for this recession to hit (if it does). And if it does? That's really when I want to invest. Any ideas?
My "plan" is to dollar cash average into a three fund portfolio, maybe a four fund. Whatever it will be it'll probably be 70%-80% into a 500 index. Not sure about the other 2-3 funds. Probably 15% into total bond index or maybe 5% gold, 5% bond index, 5% reits. The other 15% into either developing technologies or some sort of international index.
Problem is, I'm not sure how much monthly to contribute. And I'm not sure which brokerage firm to go with. I'm hearing M1 finance is pretty user friendly. I'm not afraid to leave everything in a 5.5% CD for ten months either, or part of it, as I wait for this recession to hit (if it does). And if it does? That's really when I want to invest. Any ideas?
Buy another house?
No one knows how old you are and what your goals are.
Nothing what you wrote is nuts, but as I asked - how soon do you need the money?
Also FTW, there are some some studies that show waiting to invest - long term - is not as wise as just investing now.
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I'm looking for a ten year investment term. I just got out of the landlord business, so I'm not actively looking into purchasing another house, but it could be an option if the market were to drop. And I get what you're saying, waiting to invest is probably a risk in itself.
I would level load. Two years or whatever I would have said avoid any bond funds like death. But now not so much.
Just a thumbnail:
VOO, VT, VTI for a decent chunk
Maybe for income type, spread it out a bit. Even a small amount in a decent HY junker fund if you can stand that risk. There are so many funds now. Not recommending any ONE. I mean stuff like HIGH, SGOV, SPHY, VVR, WEA all over the map and both ends of the barbells.
Don't ignore BDC's like BXSL, FSK, OBDC, etc
Be selective with REITs. There are still some deals out there. Some more risky stuff like VICI and GLPI are decently priced now.
Also seek out some good company preferred shares. Again small portion. Avoid preferred funds, IMHO.
Park for ten years and then what? You don't need to answer but just something to consider, park for 10 years and then draw down, park for 10 years and then use for X, park for 10 years and then find something new (or the same) for the next 10 years all yield a different answer.
Just something to consider - time horizon often gets lost IMO.
$500K at 5.5% is roughly $2300/mo interest. Most CDs only have a month or two of penalty if you need to get the investment principal back early for some reason.
International stocks have underperformed domestic equity for something like 8 of the last 10 years. International stocks, Emerging markets, and Frontier markets are definitely something to look at. Their multiples are significantly better than their US counterparts.
GVAL, EEM, XCEM, and FM are definitely worth a look.
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I was feeling similar on the domestic funds, looked at their five year performance last night compared to the 500 index and they lag behind quite a bit, plus most of our American companies are connected overseas nowadays.
