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BB&T Corporation Message Board

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  • mikejaquish mikejaquish Jan 3, 2004 7:37 PM Flag

    Dividends? So????

    Hey, don't apologize.
    You CAN'T underline in this thing.

    I've lurked here for about 4 years, and think a lot of many of the posters, compliment intended, Sir.
    I have no position. As I posted earlier, I think megalo-management has turned the stock into a trading issue. A fairly safe one, at that.
    Ergo, no "YAHOO! LT Sentiment" on my posts.
    You say you're overweight BBT. I'm not. Further evidence that we all have unique perspectives and needs.

    But IF I HAD BBT stock and anticipated a 13+/-% return in 2004 on my initial capital investment, via a fairly reliable untaxed dividend, I'd be hard pressed to take the long-term gain to go look for 20% appreciation.

    And all this talk IS, to some extent, hooey. These message boards are often similar to the 6 blind men describing the elephant, all grasping a different appendage.
    Like when traders, daytraders, buy and hold fellers, all with credible strategies, rip and roar about how wrong or moronic the other is....
    Uh, take note: The venue is called YAHOO!
    LOL

    Stock, are you a retired accountant?
    I think Jim is an accountant.
    Driving out to put my face into the Golden Corral trough, I discussed our conversation with The Prettiest Girl In Town, CPA. (She will attest that I am a reasonably functional knucklehead.)
    She talked a lot like Jim, and a little like you, lecturing on "The Time Value of Money."

    TPGIT took it well, and agreed to some extent when I mentioned she was a score keeper, and that is a valuable function and all, but often theoretical and removed from MAKING MONEY.

    One can calc returns and all that forever. One must follow ones training and do what feels right.
    My question is, "What, with acceptable risk, will legally put the most money, cash, moola, dinero, bread, green, etc. in my pocket?"

    If I have $XXX, how do I make it $XXX + 10% or 15%, or $XXX + 20%. With which approach am I most comfortable?

    Best wishes in your investments,

    Mike J

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    • "It appears you may have had a current 12-20% +/- annual return on dividends alone.
      Many seek such a return, and I could sit on that myself, but hope you find the investment vehicle you seek."

      Mike J

      Mike

      My replies were all directed at your original post to Cree which is above. Think I've proved the point that the 10 year return on dividends has not even been close to 12-20% annually.

      On your statement about MSFT that is exactly what you are doing on using an investment price of 10 years ago and then comparing current dividends to the original purchase price. Just my opinion.

      The big question is what is my current return on an annual basis? The answer to that question is that if you bought this stock in the last 5 years or so the annual return on investment has been horrible. On Cree's stock he probably would have been considerablely better off if he has sold the stock in 1998 and invested the proceeds somewhere else.

      If what you say is true, then all Cree has to do is find a stock that pays a better dividend rate then BBT. That is not hard to do as BAC is one. If he buys BAC which is about twice the price of BBT he would receive a dividend of $3.20 verus $2.56 for BBT on two shares in 2004. Both would have the same tax rate. Which would you prefer to own? $2.56/$76.60 equals a 3.3%return $3.20/$79.09 equal a 4.0% return

      I agree with your last statement. The correct approach for each of us is what puts the most money in our pocket for what we have invested.

      By the way I'm not an accountant. Just want to know what I make and what makes me the best returns.

      The really correct way to judge any investment in my opinion is what was it worth on Jan.1 and what is it worth on Dec.31 of the same year. If it is $38 on Jan. 1 and ends the year at $38 all you have made is the dividend. So one should really figure he has an investment of $38 in the stock with no appreciation on his capital for the year except the dividend on the $38 price. The reason for this is the fact that you could sell the stock for $38 and place it in any investment vechicle. $1.28/$38 is a 3.36% return for the year.

      In any case I'd like to thank all the people on the board for their input. More information equals a better decision.

      Yours for better investing and hope your day goes well.

      Jim

      • 1 Reply to jim56442
      • "It appears you may have had a current 12-20% +/- annual return on dividends alone.
        Many seek such a return, and I could sit on that myself, but hope you find the investment vehicle you seek."

        My bad. Should have deleted the "have had" and referred to go forward basis. That was my initial intent.
        Whoops.

        "The big question is what is my current return on an annual basis? The answer to that question is that if you bought this stock in the last 5 years or so the annual return on investment has been horrible. On Cree's stock he probably would have been considerablely better off if he has sold the stock in 1998 and invested the proceeds somewhere else."
        Yup. And hindsight has 20/20 vision, 15/20 with Laser surgery. :-)

        "Which would you prefer to own? $2.56/$76.60 equals a 3.3%return $3.20/$79.09 equal a 4.0% return"

        Truly can't answer that. And once again, we are mixing living in the past with the present, i.e., comparing an old BBT buy with current buy opportunity in BAC. No?
        Also overlooked in the "hooey" is the detail of the type of account. I have Roth, IRA, and taxable cash accounts.
        Hard to take 15% capital gain tax hit + brokerage fees on a 10 year gain to get the 21% increase in a taxable account? I think so, unless I have losses to offset, because first year dividends wash due to 15% decrease in capital to invest.
        In a Roth or deferred tax account, I probably would move.

        And I think we've beat this one to death.

        Let's all have a great week,

        Mike J

 
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