The FinancialContent Network     SocialPicks Community   |   MarketMinute Monitor   |   MarketMinute Market Updates   |   MarketMinute Stock News
SocialPicks
   Sign Up   |   Log In   |   What is SocialPicks?     

Why I spent some of my stimulus check on GE

 Jul 03, 2008 11:05 AM UTC
Return Risk
-32.50% MID
Tracked Blogger
Symbol Sentiment Start Return Closed
KO Positive 07/03/08 +43.95% --
GE Positive 07/03/08 -28.96% --

Graphic_arrow1 Via BloggingStocks:  

Filed under: General Electric (GE), Coca-Cola (KO), Economic data, Stocks to Buy, Recession

I finally got around to investing a portion of my stimulus check. I had a few stocks in mind for the money, but at the end of the day, I decided that I should buy shares of a high-yielding blue chip for the very long term. It really wasn't a difficult decision. The winner of my stimulus-check buy was none other than General Electric (NYSE: GE).


I've been talking about GE a lot lately, but if you're an investor, you know there's a lot to talk about this conglomerate. No, I don't mean fundamentally, necessarily, I mean that its current yield is simply amazing. GE has dropped a lot this year, and it's gotten the attention of many value investors. In fact, I purchased some GE shares not too long ago when they were trading about six bucks higher than the current price for what I hoped would be a short-term trade. I admit it, I was wrong.


I still think my reasoning at the time was correct, and I continue to hold those shares, but I also hold a long-term position of GE that I add to several times a year with the intent of holding for the next couple decades, maybe even beyond that. It is this position that received the shares acquired through the beneficence of the government. Although some might argue that I should have improved the cost basis of my trade, I decided against such action, since I think GE might be down for a while. If I wanted to use the money for a trade, there are probably better ideas out there for it than GE. But long-term, GE's current 4.7% yield will probably turn into an effective yield of better than 20%, assuming the dividend continues to rise in the future as it has in the past (I believe it will).


The only other stock that provided real competition for my stimulus windfall is Coca-Cola (NYSE: KO). However, the GE yield was just too beautiful. Granted, Coke is obviously the more focused business, and its brand equity is impeccable. But a near 3% yield is no match for a 4.7% yield. I think I made the right decision, but time will tell. No matter what, though, anyone who buys GE now better be patient. Short-term traders might not be rewarded.


Disclosure: I own Coke and GE; positions can change at any time.

Permalink | Email this | Comments

<map name="google_ad_map_145-1244372"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1244372?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map>





 Graphic_website1 Read the rest of original post »



Comments (2)

Add Comment

Arrow_up
Arrow_down
wwj_edhardy   N/A     1 point   commented 672 days ago reply

ed hardy,
cheap ed hardy,
ed hardy clothing,
ed hardy outlet,
ed hardy jeans,
ed hardy bags,
ed hardy swimwear,
ed hardy shirts,
ed hardy tee,
ed hardy caps,
ed hardy purse,
ed hardy board shorts,
ed hardy shoes,
ed hardy for men,
ed hardy for women,
ed hardy jeans for women.
Arrow_up
Arrow_down
damei   N/A     1 point   commented 437 days ago reply

Suboxone is a stainless steel pipe new medication for opiate basket strainer that will result in a sea change in carbon steel pipe treatment. Physicians currently steel tube suboxone are aware of the steel pipe of this medication, and news of the Plug Valve has reached the street to air diffuser an extent that opiate addicts fan coil call addictionologists and ask for diffusers drug by name. Word of mouth has air grille the news about suboxone thermal paper the benefit or need of television pos paper. My experiences with suboxone make me carbonless paper if we are at the verge of an entirely thermal paper roll approach to opiate addiction, and in turn thermal label other addictions as well. The traditional Electric hoist to drug addiction treats all chain hoist as essentially the same. Yes, the addict chain block develop a love relationship Snatch Block hisher substance, but the substances Injection Mould, brother, aunt, or uncle can Injection Moulding step in and take the place of the Plastic Parts of choice in a process called cross Mould Design. This is one reason why traditional IR Filter demands sobriety from ALL UV Filter, but there is a more complicated reason as Camera Filters. The addict, over time, becomes low pass filter of hisher mood, comfort level, and anxiety. The addict Water Dispenser checks in somatically, asking am I hot water dispenser up. Or am I oh no. coming down. cold water dispenser bead of sweat may portend the ice maker of withdrawal.

www.soupopular.com

www.linksoflononuksale.com

www.vickgown.com

Arrow_up
Arrow_down
royalsneakers   N/A     1 point   commented 543 days ago reply

Come discount gucci shoes January, discount gucci sneakers discount prada shoes the discount prada sneakers Obamas cheap gucci shoes will cheap gucci sneakers make cheap prada shoes history cheap prada sneakers gucci shoes for women prada shoes for women womens gucci shoes womens prada shoes by replica gucci shoes becoming replica prada shoes copy gucci shoes copy prada shoes mens gucci shoes mens prada shoes the first cheap women gucci shoes cheap women prada shoes African-American cheap gucci shoes for men cheap prada shoes for men wholesales gucci shoes wholesales prada shoes replica women gucci shoes replica women prada shoes family gucci kicks parada kicks to 2010 gucci shoes move 2010 prada shoes original gucci shoes into original prada shoes the buy cheap gucci shoes buy cheap prada shoes buy cheap prada women White buy cheap gucci women authentic gucci shoes authentic prada shoes House.But new gucci shoes new prada shoes gucci shoes wholesale if prada shoes wholesale Malia, gucci shoes for sale prada shoes for sale gucci trainers 10, prada trainers cheap gucci traniners and cheap prada trainers Sasha, good quality gocci shoes good quality prada shoes shop gucci shoes 7, shop prada shoes get gucci traniners wholesale what guccishoes pradashoes they've gucci shoe prada shoe gucci sneaker prada sneaker been gucci mens shoes promised, prada mens shoes fake gucci shoes fake prada shoes the fake gucci sneakers fake prada sneakers new fake gucci traniners tenants fake prada trainers gucci store prada store will buy cheap guccis rare gucci shoes keep rare prada shoes discount air jordan shoes one cheap air jordans long-standing air jordans for cheap mens nike air force one nike air force one for men tradition cheap nike air force one discount air max shoes nike air max 2009 shoes 2009 nike air max alive cheap nike air max 90 nike air max 90 for cheap air max 90's cheap air max 95 discount air max 90 ... discount air max 95 and nike air max classic bw wagging.
Cheng cheap air max classic bw nike air max limited cheap nike air max limited discount air max limited nike air max plus cheap air max plus Zi discount air max plus fell nike cortez fly motion pack cheap nike dunk sb under nike dunk sb for sale mens dunk sb cheap dunk sb shoes the chap nike shox shoes banner discount nike shox shoes of mens nike shox "kou nike shox on sale Dolce & Gabbana Sneakers kou colce & gabbana shoes zu", womens nike air max 2009 womens nike air max 90 or womens airmax 90 the womens air max 95 "stingy cheap women air max 90 cheap women air max 95 women nike air max limited women airmax limited group", cheap limited max shoes soon nike air max plus shoes for women women nike air max plus after womens air max plus women nike cortez fly motion pack cheap coogi jeans mens googi jeans she discount coogi jeans went mens ed hardy jeans cheap ed hardy jeans to ed hardy jeans for sale cheap mens evisu jeans university.

"I evisu jeans for cheap evisu jeans for men mens evisu jeans mens red monkey jeans cheap red monkey jeans realized cheap true religion jeans true religion jean it buy true religion jeans was discount true religion jeans wrong womens ed hardy jeans ed hardy jeans for women for womens true religion jeans us true religion women jeans prada shoes cheap price students prada shoes $99 size 10 prada shoes prada sneakers size 11 discount prada mens shoes not Prada Black Velcro Shoes to cheap mens prada shoes cheap kid prada shoes care replica prada shoes $79 replica prada shoes about buy prada shoes online prada shoes site our low price prada shoes mens size 7 prada shoes finances mens prada shoes size 9 cheap prada american cup sneakers black prada crocodile shoes white prada shoes just navy blue prada shoes pink womens prada shoes because urban prada shoes prada dress shoes prada black american up black patent leather prada we cheap american cup sneakers red patent prada shoes don't black leather prada shoes work," white leather prada sneakers gucci shoes white leather black leather gucci sneakers she gucci shoes size 11 says.Actually, Size 7 Gucci Shoes gucci shoes discount gucci shoes online shopping buy gucci shoes we gucci dress shoes for men mens gucci dress shoes do fashion gucci shoes have gucci sneakers size 13 a gucci ankle boots job. gucci boots cheap We gucci shoes size chart gucci men's shoes take cheap mens gucci shoes classes discount mens gucci sneakers new gucci shoes on sale and gucci shoes size 11 gucci shoes size 9 buy cheap gucci shoes our discount gucci dress shoes wholesale gucci shoes parents womens gucci shoes grey gucci womens shoes black womens gucci shoes free shipping gucci shoes pay black red gucci sneakers for gucci sneaker white leather it."Cheng, classic gucci womens shoes Pink womens gucci sneakers a senior university student in Shaanxi province, says that "kou kou zu" means maintaining a high standard of living for the cheapest cost.For instance, she only buys new clothes when she has sold some of her old ones. She also shops online, where clothes are much cheaper, discounts are always on offer and delivery is often free. She normally eats in the school canteen and rarely eats out in decent restaurants.She has also learned many cost-cutting ideas from "kou kou" people in the workforce.

Your Comment



IN THE PRESS
Press_forbes Press_washingtonpost Press_wsj Press_npr Press_techcrunch