For people who read this post for the first time: I am a private investor and live off dividends. I am not yet a millionaire but I still make money with dividend stocks over years. With my blog "long-term-investments.blogspot.com" I write down my trading activities and thoughts about dividend stocks. I learned a lot about investing and also made bad mistakes by investing money. You will never hear a buy or sell recommendation from me - that's my promise. I don't want to sell you something. The only think I like to do is to show you how I work and make money with dividend stocks.
The Intel Stock Trade
Yesterday I made a spontaneously buy of Intel (INTC) shares. The stock lost yesterday at peak times over 4 percent and closed at $19.51. The trigger news was a downgrade rating by the Swiss bank UBS. Intel was downgraded from buy to neutral. The new target price is $21.50 (before $29).
I bought 100 shares at $19.39. The total value of $1,939 is not significant for my net worth. I often buy little positions of companies in order to observe them. If the business don't weaken and market prices are still attractive, I like to increase my position to a normal level of up to 1.5 percent of my full portfolio. I believe that the stock will fall again. At the current level, Intel is at multi-annual year lows. Due to the economic environment, I believe that the sell-off should go on.
It is my first buy of Intel shares. I never had shares from the company before and I regret not to bought them in 2008/2009 when the company had a quarter dividend yield of 0.91 percent. Today, the quarter yield amounts to 1.15 percent. Intel has a net cash position and is traded at an EV/EBITDA ratio of around 4!
The stock is also in our virtual Dividend Yield Portfolio which is funded with 100,000 dollar and will be released within the next months. Within this portfolio, Intel is now one of the worst performing stock holdings (8.7 percent unrealized losses).