This is a little company background from Scottrade.
This is a little company background from Scottrade.
I have been enamored with dividend stocks that pay monthly. After my other recent purchase of Student Transportation (STB) another monthly dividend payer/player, I decided to add another montly divi stock. This company just rang the bell today at the NYSE, it began trading on the NYSE onJanuary 30, 2012, JE had previously (and continues) to trade on the TSE. I don’t trade any stocks on the TSE, I don’t even know if Scottrade (my trading platform of choice) allows for trading on the TSE.
(From Scottrade) Just Energy Group Inc. (Just Energy), formerly Just Energy Income Fund, is engaged in the sale of natural gas and/or electricity to residential and commercial customers. Its subsidiaries are engaged in sale of natural gas and/or electricity to residential and small to mid-sized commercial customers, under fixed-price, price-protected and variable-rate Energy Contracts. It also offers green products through its JustGreen and JustClean programs. The electricity JustGreen product offers the customer the option of having all or a portion of electricity purchased from Just Energy sourced from renewable green sources, such as wind, run of the river hydro or biomass. The gas JustGreen product offers carbon offset credits, which allow customer to reduce or eliminate carbon footprint of their home or business associated with gas purchased from Just Energy. OnMay 7, 2010, it acquired Hudson Energy. In October 2011, the Company acquired Fulcrum Retail Holdings LLC.
Anyhow I felt comfortable (and had about 5K available) adding 440 shares of JE to my portfolio. I will update this add to my portfolio at the end of the month. The yield is 9.78% and as mentioned earlier it pays monthly, woo hoo!
I also had a recent buy/sell of QMM (Quaterra Mining) it has no dividend and is probably considered a penny stock. I made a couple hundred dollars. I was hoping to have the stomach to buy and hold a few thousand shares, but I realized that just isn’t how I’m feeling at this time. Once the stock went up 10% I decided I wanted out, and I made the move. I would like to get into some sort of Mining or Pipeline stock, but I’m not feeling confident in the volatility of these industries at this time.
I sold two stocks this week, TJX-(100-after split originally purchased 50 shares) and MCD (30 shares). I had purchased them both in May of 2010. They both did wonderful for me, TJX stock just split, and gave me a gain of about 50%, and MCD was always going up until it danced around $100/share, then I decided I just didn’t need to be greedy and sold it for $99.75, and a total gain of around 40%.
I have to admit, I feel that I had a good run with these stocks, but I feel like I am losing two good friends. I no longer obsessively check their prices, when I purchase items from their stores, I no longer feel like I am contributing the well being of my portfolio. I just thought it was time to part ways.
A few years ago, I had a distasteful experience with a bank stock, oh sure she gave me a good increase on paper, but I didn’t know when to say good-bye and just take the gain and walk away. I have learned my lesson. Now I know what gain I’m happy with, usually around 30% is great for me, unless it has a huge dividend then I might keep hanging on. It’s a case by case scenario, but I’m not going to be greedy.
What are your indicators that it’s time to sell?
Since I began investing with my Scottrade account (about two years), I decided to focus my efforts on Dividend Stocks. However, since my capital is limited, and after my success with both McDonalds (MCD) and T.J.Maxx (TJX) both are currently up over 40% and TJX just announced a 2-1 split. I have decided to divide my portfolio for both growth and dividend earning. Then as we get closer to our retirement (or semi-retirement) I will move to hold more heavily in dividends.
I am excited to find some undervalued stocks to add to our growth side, and thinking about the oil and gas sector. There are some stocks trading under $1.00. These could be either an opportunity for huge growth or just a dumb risk? I know I need to do some research before I pull the trigger. Currently we are looking at Quantum Fuel Systems (QTMM) and Quaterra Resources (QMM). I hope to make a trade this week. I will post when I make the transaction.
*Interesting Point* When I was looking on the Scottrade site to purchase a stock under $1.00, I found there is an extra fee. There is the normal $7.00 trade fee, but for stocks trading under $1.00, there is also a fee of 1/2% of the principal value. For example, if I want to buy 8500 shares of a stock trading at $0.50 /share, there will be the $7.00 normal trade amount PLUS, $21.25 (8500 shares X $0.50 = $4,250.00 (principal value) X 1/2 % = $21.25) Total trading fee $28.25, just something to consider. Kinda discourages lots of day trading on the Scottrade account.
Once again my free seminar at Scottrade was well worth the price of admission, just my time (which I view as valuable). It was a nice review of options, as I haven’t really thought about them since one of my college finance classes back in the mid-90s.
I don’t know if I could briefly explain them in this post, but I will say they can be complicated and risky, so do yourself a favor and take a free seminar from Scottrade you don’t even have to have an existing account.
Next month, I am looking forward to attending the seminar on Intermediate Options.