Managing a Self-Directed Portfolio | Ken Rose, CMT | 1-4-21 | Identifying High Yielding Stocks
hello investors and welcome to our session here managing a self-directed portfolio happy new year as well we're getting off to a new year here which which is great the market's not looking at it too great it was interesting today the market was looking to have some strength but then it faded you know the preachers were up nicely this morning we faded came down significantly but we did finish off the lows we'll take a look at that as well as other factors affecting our self-directed portfolios here so let's go ahead and get underway [Music] [Music] so again investors welcome to managing a self-directed portfolio my name is ken rose and as always it's great to be here to discuss investing in the stock market just a little reminder you can follow me on twitter my twitter handle is at krosc underscore tda i post things related to this area as well as other areas of investing i also want to thank cameron may over there in the chat window for addressing any questions you have cameron's very knowledgeable in this area so do feel free to shoot your questions over there in the chat window in wave disclosures here today just a reminder that in order to demonstrate the functionality of the platform we need to use actual symbols however td ameritrade does not make recommendations or determine the suitability of any security or strategy for individual traders and investment decisions you make in your self-directed account is solely responsibility we also use actual symbols in here and you want to keep in mind that even though we use actual symbols we're not making any recommendations or endorsements any decisions you make with regards to actual symbols or actual stocks in your own individual trading accounts is solely your responsibility we also use a paper money application in here which again is for educational purposes only here's a picture of myself been here since about 2 000 for i specialize in blending both fundamental analysis with technical analysis one of the one of the things i love about my my area of working here is that there's always opportunities to learn new things new technologies new strategies and like i love to learn about these things i love to teach these things i love to trade these things as well i'm a contributor on the td ameritrade network i'm also a charter american market technician and i work at think scripting building indicators triggers and strategies with regards to our agenda here today we'll do a little overview of the market kind of see what's going on here today as we're opening up the new year here we'll review our current portfolio see where we're at with regards to profit and losses and percentages related to that we'll review existing positions as well as allocations then based upon our existing positions in our allocation we'll look to enter in paper trade portfolio look to enter in some additional paper trades with our within our portfolio if we have some time we'll also look at positions that we have exited to see if possibly some of those positions are improving and they may be considerations for re-entry again that's that's if we if if we have some time here we'll kind of see how things go with regards to that last point on our agenda so with that then let's go ahead and get underway and to do that i'm going to pull up the thinkorswim platform here i'm going to think of some platform here we have a graph of the s p 500 this is a six month daily chart you can see the s p 500 has been going nicely up here we created created some new all-time highs and we continue to come up here another pullback another higher high here another pullback here and another higher high but today we actually gapped to the upside so things were looking pretty good the futures were up strong across the board on all the indices then we took a significant move down here to the downside but you can see right here this this tail we have on our candlestick right here that's indicating that we did we did we did we came off of the lows with regards to closing however if we want to look at this and and look at a little bit more detail we can see that we have what's what's considered to be a bearish candlestick pattern i'm just going to see if we can zoom in on this a little bit i'm going to switch here from the six month chart to a three month chart just so we can see things a little bit better and if you look right here you'll notice that right here that's the top of today's body and right here that's the bottom of today's body and that body completely engulfs the body that we had last week right there that's referred to as a bearish engulfing pattern and it does suggest continued movement to the downside it doesn't guarantee continued movement to the downside but it does suggest continued movement to the downside a key point right here is this point right here actually where we closed here today at the 3700 level you know in in trading tomorrow if we drop down below that point that's giving you a little bit more of a confirmation of that bearish engulfing pattern which could result in the market continuing to move to the downside that would actually take us down below this little support level right here i'm just going to bring a line across it here's a support level that we had a week ago if we break down below that then our next level support is going to be down in this area right here and that next target there to the downside i'm just going to grab that line to a right click and choose edit properties and say yeah we want to see the price on this just so that we can see it so our next target of the downside if indeed we do crash down below this one our next target the downside would be at about the 3629. now could we recover overnight and move to the upside we could but if you're looking at us from a technical analysis standpoint we do have that bearish engulfing pattern which could indicate possibly a continued move to the downside here now we're taking a look at the over market kind of getting out getting an idea of where it's looking at that would mean that if we do find some potential entries with regards to our positions we may be using um orders or orders that would be contingent with regards to an improvement of the existing positions or you know the market individual stocks tend to follow the market as a whole so we may find some candidates we may have to use contingent orders in order to look for improvement from those individual candidates just taking a look at a review of our portfolio and how we've been doing on that let's pull that up here's our portfolio before we go into this so just a little bit of an explanation with regards to our portfolio here so we've we've taken the standpoint that we're playing the part of a young professional investor right here this is a picture of a young professional investor now we we could have gone in as as an established professional we could have gone in as a peak earner we could have gone in as a retiree you know in looking at it from this standpoint the primary differences are allocations with regards to different asset groups and with regards to a young professional investor here we're looking at it at an allocation here of about 55 percent of our portfolio going into growth stocks and looking at about 25 percent of our portfolio going into income stocks these would be stocks that are primarily geared towards towards creating income things like things things like stocks that have a history paying dividends and the like and then we have about 15 percent of our portfolio going into what's sometimes referred to as alternative investments these could be hedges these could be penny stocks and and when we talk about penny stocks we're talking about stocks that don't actually trade in pennies but are actually small cap stocks this is the part we're playing now if we were an established professional a bit long a little bit longer a little bit longer a little bit further along in our professions we may change things you know an established professional they may not be interested in growth as much as income so they may be looking at something more along the lines of possibly 40 percent here with regards to income if we're a peak earner possibly getting ready for retirement then again with regards to that we may be looking a little bit more so with with regards to income with a peak earner may be looking at maybe 55 percent of their portfolio with regards to income and a retiree now if we're in retirement we may choose to possibly have as far as our total investable investable assets with regards to income in stocks with regards to income stocks we may be looking at possibly something about 30 percent of income from stocks and again being a little bit more conservative maybe something along the lines of 50 of income from bonds so as we're as we're looking at these different asset allocations with regards to life stages we've decided to play the part of the young professional here but keep in mind the principles and things we talk about would be applicable to these other areas right here as far as some considerations in these allocation areas between growth and income and alternative investment but the percentages could change and they could change in a significant way and again with regard to our sample portfolio here as i mentioned earlier we're basically looking looking at this part of our stock portfolio right here that part of our stock portfolio again 55 growth and 25 percent income fifteen percent of alternative investments you've been doing the math you'll know that this has left some an additional percentage for cash i think we got like five percent for cash somewhere in there of course that that amount for cash depending on on how how we've maxed out our allocation here that could grow and it could also decrease as well well with that then let's come back over here then to our portfolio mix then and see how we've been doing on this okay so here's our portfolio this this is the growth allocations we've got a fair fair amount here in yellow what we do in here is we play the part of the investor that's that's looking to enter in a position as long as position is going up nicely that's great the position pulls back though then maybe pulls up and it fails to make a higher high in other words it fails to continue to go up and then it breaks down and maybe drops down below a support level so the trend has changed we're okay exiting those positions so all these positions in yellow these are all positions that we've exited and we've taken it from the standpoint we're okay taking a little bit of a loss up here when this occurs but we don't want to keep losing in case something like this occurs we also taking the position that if something like that does occur but then the underlying security starts to show some strength and starts to move up we're okay taking a re-entry when technical analysis justifies it as long as the fundamental analysis that initially brought us in the position is still in place you can see here for example that we have entered apple and we've exited apple we entered apple here and we exited apple that's just one example and we're current we currently have a position in apple okay so okay being a little bit more active with regards to our investments as far as moving in and out of some of these positions we're also on the lookout for additional new positions of which we haven't been at you know we haven't had a history of but we're okay looking at positions that we've exited for possible re-entries if we have some time here today we'll go ahead and explore that so this is our this is our growth area right here this is our greatest allocation we started keeping track here about latter part of june the first part of july we're currently up in this in this area of about 26 and a half percent in our income area right here well another thing we want to look at is our current allocation so we currently have allocated 179 000 here but based on the growth of our overall portfolio we can allocate up to 236 000 so we have some additional room that we could add in here with regards to to with regards to growth stocks we come down here and we look at the income area of our portfolio income area of our portfolio notice here our current allocation is 41 000 and our we our allocation target is 107 so we could continue to allocate to this area as well with regards to our we we actually only have two positions in here right now we have sybt and we have d-i-s-d-i-s-c-a our performance on this hasn't been as great as the as the growth area of course with the markets market has tended to favor growth stocks of late but we're currently up about about 12.73 percent i don't know that i've adjusted everything for all the dividends on these individual positions that's something that i'll go back in and make sure that's up to date but that's where we're currently at today i think we'll probably like to add to add our to add to our portfolio here in the income area we're usually doing about twenty thousand so it looks like we're currently allocated at about forty one thousand we can take that up to a hundred and seven thousand so we have plot we have lots of room up here right we could um we could do three additional positions at twenty thousand we could do three i should make a note here three positions a 20k some somewhere somewhere in about that area and our our last our last area here with gross allocation this is our alternative investment area this is the most volatile you know we we do things in here sometimes we'll do options in here last last week we did a momentum trade those of you that are here with us last week we entered in this trade here based primarily on momentum we also took into consideration some other factors with primary on momentum you can see that we're currently getting beat up on that position we're currently down about about 20 27 2800 on that position but we're still in the position now we're still in that one we also have an open position here and we have an open position here we also have some room up here we've allocated 26 we can go up to 64. in here because the nature the volatility on these alternative positions we've kind of gone a little bit more down towards allocations in the area of about of about ten thousand dollars we could but we we could still at we could still do some more allocations here as well well based on that again here's here's our return here just under 12 and that that does that does uh jump around rather rather significantly because the nature of the volatility so with that in mind then we'll we'll kind of come over here and we'll look at look at income as an area here and in doing that we use a couple approaches with regards to looking at income stocks and for this week we'll use the yield approach and let's just pull up some watch list here to take a look at that i'm going to come back over here to the thinkorswim platform i'm going to open up our left hand side right here and i'm going to switch my chart over here to this chart right here now notice right here where our chart now we have a five-year chart okay and each one of the candlesticks on the chart now represents a week that just makes it so we can get the entire chart in our screen right here a couple of cares we're looking at right now this this is a chart on the s p 500 the s p 500 doesn't have a dividend yield here let's pull up a stock here i'm going to go here we'll pull up mo here let's tie things in here to our chart mo so here is mo okay now on my on my listing here and i'll talk about the list we'll be looking at here today but i have a i have a yield column uh put in here and this is just a standard yield column it's available to you as part of the thinkorswim platform and i've sorted by the yield column to bring the highest yielding stocks up to the top and i'll talk about or watch this here in just a minute for right now i just want to give you heads up on what we're looking for here on our charts we're going to be looking for we're going to we're going to be looking at dividend yield of course we'll already basically have the dividend yield from over here in our column so we'll primarily be looking at our payout ratio right here and the the stock the the the list that we're going to be looking at we're going to be looking at dividend champions which is this one this is a listing of stocks that have paid and increased their dividends for 25 plus years so keep in mind in order to be a member of this list you have to have a track record of paying your dividend not only paying it but increasing it every year for the last 25 years in other words if you look at the look at the trailing 12 months of dividends that trading 12 months of dividends would be higher than the previous trailing 12 months of dividends year after year after year for 25 plus years so these these stocks have a history of that now because they have a history of that they want to they want to maintain that history because some investors are investing in these stocks a large number of investors in fact are investing in these stocks primarily for that fact that they can they feel like they can rely upon these stocks for a constant dividend stream but we know that there's no guarantee that these companies will be able to continue to do that but if they do have a history that tends to help ensure that occurs but in creating that dividend yield and for those of you that aren't familiar with the dividend yield let's just go through the math for that a sec for a second that's basically it's the trailing 12 months of dividends divided by the current price the stock this is one way to calculate it this is this is called your current dividend deal another way to calculate is called a forward dividend deal and that's taking the most recent quarter the most recent quarter of dividend okay timesing it by four assuming the company will maintain that level or increase it and divide that by the current price this is another way to calculate it now regardless in in looking at this though when you when you look at the math of this model here you can see something okay and that's this if the price goes down what's going to happen to the dividend yield the dividend yield this entire calculation right here that dividend yield is going to go up so i've sorted by high dividend yields here i have the highest dividend yields in this listing right here and the dividend yields are the highest here it's assumed that the price the underlying security has gone down now there's a reason the price of security has gone down and part of the reason could be because of what's gone on in the industry group it could be because of what's gone on in the economy it could because of something that's gone on with the individual company companies will will struggle to maintain their dividend yield once they're on one of these lists and in order to create a situation where we don't get stuck in what's called a dividend trap where we invest in a company that has a high dividend yield just to see it cut its dividend this is a key number that we're looking at we're looking at this payout ratio that's the percentage of earnings per share that they're paying out in order to maintain that dividend yield and we're going to play the part of the investor that wants that payout ratio to be less than okay wants that payout ratio to be less than 70 percent now let's say you're saying wait a minute ken i want that to be less than 50 or less than 60 percent that's fine that there there there's nothing wrong with that just keep in mind that these companies they pay out their dividends they pay out a large portion of their earnings and dividends because they're they feel like the investor appreciates that number one they also feel like because of the nature of the growth model that they're engaged in an investor could possibly do more with that excess cash than the company can so you do want to keep those two things in mind a payout ratio that is that is super low okay maybe 20 or 30 percent you may not find any companies uh that's a member of the dividend champions with the payout ratio that is that is less than 20 percent you may i i haven't gone through and checked all these i mean it's a possibility i just i just don't think that that that that it is likely and in fact when you look at some of these higher dividend however individual payments don't be surprised if we see a payout ratio that is greater than 100 percent you see a payout ratio that's greater than 100 percent that's basically telling you the company is using cash to maintain this dividend because they want to they want to maintain their history of continuing to pay their dividend and continuing to increase their dividends so what are we looking at here then well we're looking for high dividends high dividend yield and a payout ratio that is less than 70 percent we're going to look at one other item again why is it gone down we can do our own fundamental analysis in fact michael fairborne teaches an excellent class on fundamental analysis you might want to check that out okay if you want to if you want to do some of your own but you you can also do some of your own you can also rely on rely on what analysts are saying we want to keep in mind that that analysts the analyst day that's available to us on the thinkorswim platform this is third-party data okay so of course it's not guaranteed with regards to accuracy time and it is third party okay but but it is available to us out there so we'll be looking for high dividend yield we'll be looking for a payout ratio below this we're also going to be looking for analysts up here if we click on analyze right here we come down here to fundamentals and let's tie our analysts in here as well we're going to be looking for analysts to be you know we have these analysts right here again third-party analysts third-party information not a part of think or swim not a part of td ameritrade but would like him to be a little bit more over here on the positive side and looking at the analysts just just a little bit of a heads up this market edge right here this has nothing to do with fundamentals so it's nice to see it over here on the long side that's probably telling us that the chart looks pretty good this is all about technicals though we're talking about what we're looking for we're looking for these these guys here a little bit more research teams suffer in the street because these are more geared towards the underlying fundamentals of the company again we're likely to be a little bit more over here to the right hand side rather than over here to the left hand side so those are the those are the areas we'll be looking at and where we're going to be looking at what we have three watch lists here we have dividend champions which have began to pay dividends for paid an increase of dividends for 25 plus years we have dividend contenders paid and increased their dividends for 10 to 24 years we have dividend challengers paid and increased their dividend for five to nine years now these lists right here i often i'm often asked hey ken can you send us out the list for these actually i'm not able to do that i do want to let you know that these lists are also third-party information not guaranteed with regards to accuracy of time where can you get these well let's talk about our old friend google shall we google dividend champions contenders and challengers and you'll find sources over there and with those sources you'll be able to easily create a watch list over here it's it's very easy let me just show you how easy it is here real quick just so when you find those sources you can do it i'm going to come over here where i have an existing watch list i'm going to click on the name i'm going to come down here to create a watch list right here here's create a watch list i come over here and i click on import right here okay and i'll come over here and click on paste symbols from clipboard now notice i don't have any symbols here but when you find the source those sources are most likely going to be available in spreadsheet form just open up the spreadsheet copy the symbols only just copy the symbols from the spreadsheet just highlight that column do right click choose copy then once you've copied them you're done because that copies them into the computer's clipboard come over here when you choose paste symbols and clipboard you'll see all your symbols over here okay and then just click on ok and then and then give it a watch this name so it's literally as easy as finding the source copy the symbols from the spreadsheet that the source provides okay once you've copied them it's going to be in a computer's memory come over here choose paste symbols you'll see them listed across here and click on ok after you after you give it a name and you're done so again a very a very easy process if i could share these with you i would but there are some there are some legalities involved in that that prevent me from doing that okay but i i showed you how to do it because that is something i can do is i can show you how to do it okay all right so with that in mind then let's come back over here to dividend champions what would like to do we can do three positions here so let's just see if we can find maybe one from dividend champions one from challengers and and one from contenders okay now i'm not going to go through this whole list here but that's something i'd encourage all of you to do because the ones we're going to find we'll just we'll just we'll just pick out maybe maybe one of the two first ones though that we come across okay we'll do we'll just pick that out and we'll go ahead and go with it it's not necessarily the best one for me or the best one for you but i encourage you to as a practicing after we're done with our session here come over here and just go through the same process that we're going to go through here okay i also have a little bit of a help here with regards to charts we'll be looking at and that's this notice down here we have yield this is historical yield this is a custom study by the way folks so i'd be more than happy to share this custom study with you via twitter so if you like this study just just contact me over on twitter again it's krosc underscore tda and on twitter and i'd be more than happy just say hey ken can you get me the the the historical yield study and i'll be more than happy to get that to you what this does if we're looking at our five-year chart here for mo notice here that this was kind of the ordinary range that we were in here with regards to our yield then things started to get a little bit crazy this was the ordinary range now look where we're at right now it's just telling us that from a historical standpoint the yield is quite high this is saying hey the yield's high but that doesn't really mean much from a historical standpoint if it's historically high then that means that this stock has a considerable room to move to the upside from a historical standpoint pushing the yield down okay and getting the yield down to where it was at back here you know you know about uh about four or f about four or five years ago okay now we're okay with that because the yield it can go up here and push the yield down but guess what if we acquire the stock here we're locked into that yield you know some if some of you may have noticed or read somewhere that that that warren buffett has had or currently has stocks where he has a dividend yield of like of like 50 60 percent how does that happen well it's acquiring a stock that is paying a dividend yield that's that is that is relatively high okay here the company goes up pushing the yield down but we still have our basis and the stock is down here and guess what these stocks have a history of what have a history of earnings per share growth and they also have a history of dividend growth so if we come in here and the price goes up here that's that's okay with us because we get some capital appreciation if they continue to increase their dividend and our basis stays down here what happens to our what happens to our our real dividend yield i guess you could call it based on what we acquired the stock it goes up and up and up so we have a higher and higher dividend yield with that oh but but what what do we have here with mo well we have a payout ratio right here uh 78 percent that's a little bit high also these labels folks if you contact me on twitter say ken can you send me the enhanced labels and the historical yield ask me for both of those i'll make sure to get both of those out to you okay so with that let's start let's start going through some of these then before we run out before we spend too much time but but i i did basically want to want to set a little bit of a foundation for you here okay so here's mo notice dividend deal to 78.3 percent i'm going to make this so that we can just focus here in fact let me just come in here to edit studies i think i can do this relatively quickly so what do we we just want to see the payout ratio right i'm going to turn i'm going to turn a lot of these off so they're not getting into our way so we're just looking at payout ratio because we've got a lot of stuff on here don't we percentage here let's turn that off and we'll turn this one off because we are just looking we don't need the yield because we're already going to have that over there's our payout ratio right there we'll say no to that one we'll say okay and apply now we get our payout ratio plus one other one here but that just makes it that makes it a lot less busy right because there's our payout ratio so let's come down here then let's look at xom payout ratio 446.
it's possible that's what happens when they get on these lists at t att is interesting because we already have an order in here to enter into a t and we identified this as an income stock way back but what did it do after we i think we identified it right here and it just slid down so we're waiting for recovery if it goes up here that should automatically take us into an order on att so we have a sitting order here on a t based on recovery okay and we'll see we'll see if and when that gets filled all right coming down here now notice on at t dividend yield of seven percent payout ratio here is below 70. let's see let's see what analysts are thinking around is still fairly okay with this one so analysts are primarily over here okay we can see that and so that's why we have an existing order right here on a t we'll see what happens in here okay i think actually what i may have here actually i'm going to zoom in on this a little bit and see we got going on yeah we got a little bounce there we just wanted to get up to this point here then we'll look to possibly get a trigger on that one all right so let's continue our journey here though we'll zoom out and uvv what payout ratio 146 yeah they'll do that in order to stay on 567 we're not going to be interested in that 336 56 this look is looking a little bit interesting so we have a payout ratio of 56 percent a dividend yield of 5.59 you see taking a little move up here moving to the sideways what are analysts thinking about here by the way i want to change this to managing a self-directed portfolio what are analysts saying on this one let's go ahead and check out fundamentalists the analysts are hold hold to buy this again this is based primarily on technicals people's united financing why don't we why don't we go ahead and we'll go ahead and select this one from our from our dividend champions list okay going here looking at the chart we can see that this is sort of where we were at four years ago here we are here rollo then we coming up here we're in this range and we are up and we are up in a higher range right here okay now if keep in mind here i'm looking at a five-year chart here i'm looking at a longer term if i pulled up a one-year chart would actually show the dividend yield as being relatively low but but a lot what a lot of fundamental investors do they'll go back five years because that usually encapsulates one economic cycle it's not always the case okay from historical standpoint tends to encapsulate that it's relatively high from an economic cycle standpoint things cycle back into favor and this thing could move up but are we as i indicated earlier we're probably looking at some kind of a conditional order on this on our entry though let's shift gears and we'll go to a daily chart rather than a weekly chart so i'm going to shift gears here and how about we move over here and i'm going to tie this in pvc so now we're looking at a daily chart on pvc so we'd like to get a break out of this resistance level right here and let's fix this up a little bit i'm going to bring a study over on this chart rather than implied volatility we'll bring over the average true range i think that will be beneficial to us as far as setting a contingency and let's make that average true range line just to make sure that we can see it say okay here and we'll say apply here and also okay here so we're going to do here is we're going to make a conditional entry on this stock based on the stock trading one average true range above this resistance level right here and that resistance level is at 13.06 and the average true range is well we're not able to see it here very well are we so let me change the color on that a little bit here to edit study we'll come over here to average true range and we'll change our color here to how about a nice red there we go apply that and we'll go right there okay so every range is currently 37 cents so we take 1306 and we add 37 cents to that that'll give us our entry 13.06 plus
0.37 so our entry will be at 13.43 now the stock could could gap okay so we'll say we want to trigger an order to say we want to buy it at 1343. only willing to pay up to 13.
[Music] let's go with 13.53 and we wanted to do about 20 dollars on this one right to capture that five point five nine percent so if we take twenty thousand dollars divided by 13.53 cents we got about let's let's let's go ahead and go with 1400 shares and we can do that right here from our chart so we'll go do a right click here we're going to choose buy custom in fact i don't you know for right now we're just looking at getting filled okay so we're just going to do by order we're not going to worry about a stop-loss order at this point we wait till we get filled then we'll reassess the technicals after that then we'll come in and put a stop-loss order at that time okay we'll buy here we've got our order and i'm going to choose edit this now we have the order up here i just want to edit the quantity here take that up to 1400 there we are there and you know i'm kind of thinking about a little bit how we doing on time yeah we're kind of stretched for time so i'm going to go we're going to go ahead and put this order in folks so this is going to be a a stop limit buy order it's going to be good till cancelled i'm going to say okay in order for us to be in order for us to buy the stock we need it to be at 13 and 43 cents if it's at 13.43 we're going to be willing to pay 13 and 53 cents now question i get sometimes is okay ken what if it goes up and hits 1343 and that's the current market price are we going to get filled at 13.53 we shouldn't at least at least not for the first 100 shares anyway we shouldn't be filled with that price if if it's inching inching up inching up his 1343 there's a good likelihood we'll get our entire 1400 shares at 1343.
now there's also possibility we get maybe the first three or 413-43 then it starts to move up we put a limit to it at 13.53 as far as our limit there so with that then i'm going to do a confirm and send and manage self-directed portfolio we'll go ahead and send it in there and it's off and it's going so we have one from dividend champions now again there's a lot of other stocks here i'm not saying you know so maybe maybe maybe you feel a bit more comfortable with ibm here we could do the same thing with ibm large cap a well-known company has dividend yield of 5.26 percent if we come back over here and take a look at this we can see that here's where we're typically at and it kind of came up here historically are we in a high area for dividend yields for ibm yeah we are got some room to the upside what's our payout ratio on ibm it's 57 percent what are analysts saying about ibm let it populate here so we got we got a hold from research team four out of five stars on sephora buy from the street neutral here so so ibm so ibm would be a possibility come in here and take a look at it and let's shift over here to where we're looking at a chart which counseling represents a day we could put in a a breakthrough resistance right here okay if ibm breaks above that then perhaps we'll take a thing we could do the same thing i'm going to leave ibm here as well as all these other ones for all of you as as potential practice traders i'm not recommending ibm or anything else just saying there's other stocks in here we didn't necessarily pick the best one for you or for me or for anybody else we just did an example there are other stock stocks in here to take a look and consider let's see if we can find one here under dividend contenders now these folks have been paying dividends for 10 to 24 years they don't have the storied history of dividend champions but sometimes the yields can be a little bit higher on these now this one here says 80.26 that usually means there's some there's been some kind of a stock split recently and it just hasn't adjusted for it that seems way way out there if you get if you get kind of a crazy number like that it's probably a good idea yeah it looks like we had a stock split right here and so so so the charts not right the charge hasn't hasn't adjusted for that let's take a look at okay here though okay you can see he has a history of dividend yield being down here quite a bit right but just recently it's popped up here so it's it's kind of lower here of late as far as this range right here but still at at a historic high oh you know what we didn't even need to waste our time on that the payout ratio is 257 let's come down here we'll go through these a little bit quicker now payout ratio 99 that's too high 86 is high 139 is high 134 is high 111 is high oh that one was really up there 79 looking for a number below below 70 pay pal is right at 70. six percent right at 70. how about analysts what are animals saying about paypal here come down here now we got to reduce on the other side as you get on some of these that have don't have as much of a history analysts are going to be harder to please let's see we can find something here we don't want to spend too much time we've got we've got one in the books already here's prudential payout ratios the dividend deal is 5.6
starting to move up here we can see that it has a history of being down in this area with regards to its dividend yield if we go back five years so it's at a rather high level it's not at this peak but that occurred right here okay so it's still you know the dividend yield could move down appreciably which means the price of stock could move up appreciably payout they're paying out about 45 percent how about what our analysts saying on this one on prudential this looks like a little bit over here on the right hand side we'll go ahead and use prudential here for our dividend contenders we may not have time folks to get to our challengers let's go ahead we'll do one here on on prudential here try to fill out our income portion here so we've got our chart here let's shift gears to our daily chart to fine-tune our entry here's our daily chart you can see it kind of moved down with the overall market so let's say on this one we want to you know we pulled up here we're rolling over let's grab a drawing tool here we'll take this off here and i'm going to catch a i want to find a significant technical place right here i think we're looking at right here okay now why am i choosing this this point right here because the stock came up and hit it today it pulled down it hit it here over here we had one two three days where it had difficulty broke above it here then it broke down drop back down below so this is a nice little significant resistance level let's say on this one we're okay entering prudential when we get one atr above this resistance level and what's that going to be well our atr on prudential here is at 199 let's just make it easy and round it up to two bucks so we're at 78 so we need to get up to what two bucks to 78.61 we add two dollars that that puts us at 80 61. so we'll say okay we need to be at 80 61 if we're there we're willing to pay up to 81 dollars for prudential so to put together our order then i'm just going to right click on the screen here i'm going to choose buy and we're going to come down here and choose edit and we need to figure out how many how many how many shares we want to get we're looking at a twenty thousand dollar investment on this one based on our asset allocation that we're looking at let's do twenty thousand divided by potentially eighty-one dollars as potential you may get filled to size 81. 246 shares let's just tell you what let let's go ahead and round it to 200. that just makes a little bit easier in case we decide to do covered calls on it and that you know gives us a give us a little bit of additional room for another allocation that's okay as well here's our order we're going to make this a good till cancel order we're going to make it a stop limit buy order what's our stop price what does it need to get to it needs to get to 80. and
61 cents if we're at 80 or 61 cents how much are we willing to pay for well if it's creeping up and just hits 80 61 that's where we want it okay if it's moving fast if it's moving quickly or if it has a little bit of a gap we're willing to pay 81. and zero cents right there okay so and we have that good till cancel we have that set up so let's go ahead and click on confirm and send all right folks so that's in there hi everybody hey we're we're pretty much out of time here for today um i'll see if i can maybe come over here dividend challenge or see if i can get a third one to add in there for next time um one thing i'm thinking about doing with regards to next time because we have a new year here i thought it might be a good idea to save this spreadsheet as a reference spreadsheet for last year okay and and and and and come back in here and change change our prices here to where we where we finished off the year and just start off the new year blank so have zero percentages on all these areas and just and just start off the new year i i think that would be a little bit more intuitive and a little bit more beneficial with regards to following along on the air and if we need to we can always reference back here to last year as well so i'll work on putting that together for our next session okay next session we could be looking at growth we could be looking at alternative investments we could be looking at this area again we'll kind of see what's going on with the market and make that make make that d make that determination all right all righty everybody well let's go ahead and wrap things up here for today all righty so again i want to hey i want to thank cameron may over there in the chat window i'm sure cameron's been extremely busy over there i i try to get through a fair amount of information by the way everybody this session is being recorded it is being archived so if you start to feel a little bit overwhelmed with things do keep in mind there is there is an archive available to you let me show you a couple of other areas to to kind of keep in mind with regards to possibly feeling overwhelmed if you come on the td ameritrade website right here and you click on education when you click on education this tab will come up like this and on this tab you can open up you can open up click on here and open up the webcast calendar and this will give you webcasts it will give you and you go into the archived webcast or you go into upcoming webcast okay go to the webcast calendar if you want to look at some archives you can do that ours will be an archive we spend a fair amount of time talking about technical analysis in here so i always want to come in here and just highlight right here are getting started with technical analysis because it's easy to feel overwhelmed with regards to technical analysis this is taught mondays at 11 a.m eastern time by our very own cameron may okay there's a and there's another getting started here from connie hill with regards to stock investing as well as other as well as other webcasts in here so if you felt a little bit lost getting started with technical analysis getting started with stock investment then i also mentioned michael fairborne in his his class on working with underlying fundamentals and let's see if i can find his class quickly here we have had a recent shuffling here i think it may actually be on fridays but i'm not absolutely sure on that let's see michael we got you in here there is here it is well that's investment and yeah this this is actually it right here if you if you wanted to get a little bit more into the fundamentals yourself i'd encourage you to check out this growth and value strategies because mike michael fairborne does a good job of getting into that that's at 4 4 p.m on thursdays so with that then folks let's go ahead and wrap everything up here again just a reminder follow cameron on twitter i'm sure can't be more happy to send his his handle over there to you at cma underscore tda also you can follow myself over there on twitter as well anyway disclosures here today just a reminder that in order to demonstrate the function of the platform we need to use actual symbols however td ameritrade does not make recommendations or determine the suitability of any security or strategy for individual traders any investment decision you make in your self-directed account is solely your responsibility so investors i'm looking at something that's kind of funny on my screen here i hope you're seeing all this okay because i lost a piece of software okay here's the rest of our underlying information here as well with regards to our our our our our our heads up here and my the the name of this is okay but so so again these these are all these are also other cautions there there there is a word for these maybe cameron knows it all right folks so again thanks for joining us here i usually like to come out here and and talk to you in person however the software that allows me to do that strangely quit here today so i'm not going to be able to do that but just a little bit of a heads up to thanks for joining us here today hope to see you next week for our session as well best of success in your investing and as always be be certain and be be careful and be safe out there the vaccine is on the way for many of us and some of you have already had it i just talked to a fellow this morning that he said he's an employee at a local hospital he he got his and and i'm looking forward to some of the older folks that i know being able to get that to be safe this would be a horrible time to get sick so be safe be careful and again hope to see you next week bye everybody thanks again and we'll catch you later oh just little heads up i just see that question there how we get the historical dividend now feel free to shoot me a question on twitter on that i'd be more than happy to get that out to you victor and and anybody else wants anything any of those any of those customized things that we did okay i'm signing off now bye everybody you