Couple of quick questions

Portfolio wise I am almost 50 and try to balance 30% in dividends, 30% gold related, and 30% value stocks, and 10% yolo. The question I have is why is there so many services that love 3% dividends from insanely expensive stocks but never mention stocks like NYMT or AGNC? Is there something I am missing there?

Also I have my share of index funds like fidelity select s&p 500 and big cap like Tesla but I love small companies like POWW and FSR. If you are investing in a budget does it not make more sense to buy up and coming stocks to get more shares than it does to buy stocks that cost $200 bucks or more?

Hi Wargolem,

“to get more shares”


Capital invested is what counts not the number of shares.

You can buy a garbage “stock” for less than 1 cent per share, buying thousands of shares and make a lot less money over time than if you had bought 1 “expensive” share of a good business.

Invest in businesses.

AGNC & NYMT are mortgage REIT’s. They are the highest risk REIT’s around. I own one, NLY, in a small amount. While it is our 3rd highest cash producer, we do not rely on it for income so if it tanks, it will not cause a large problem. (Our portfolio produces 220% of our needed cash and losing NLY would drop that to 180%) NLY is our 20th position by size of 31 positions at 1.65% of our portfolio.

Those 2% to 4% dividend payers will often include the better companies. Those that annually increase their dividend. Some companies like Coca Cola (KO 59 years), Kimberly Clark (KMB 49 years), Genuine Parts (GPC 65 years), Emerson Electric (EMR 64 years) and Colgate-Palmolive (CL 58 years) have long records of increasing their dividend every year. These are solid, reliable businesses.

For pure growth, sure POWW and FSR can have a place in a portfolio.

Does that help you?

All holdings and some statistics on my Fool profile page