• DUK a good stock for long term investing?

  Im 16 and I want something good to put my money into. Since i am 16 I dont have a lot. I was looking at this because of the low price but it still has a good intrest rate. I understand a lot of the stock market and im intrested in it. Im just trying to get a jump on life and make good choices early on. Any other stocks or options you wanna mention would be great! Thanks!

   

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    muncie birder 1:03 pm on July 31, 2010
    

    Well DUK based on past performance is not the greatest investment idea. Now it does pay a decent dividend of about 5.8%. But there are other stocks that pay a comparable dividend that I think might be a better investment.

    Let’s look at the record. Ten years ago DUK payed a dividend of 1.10. Now the dividend is only 0.98. Ten years ago the revenue was 49 billion. Today it is 13 billion. Ten years ago it earned 2.38 a share. Today it earns about 1.30. Ten years ago the stock sold for an average of 35 a share. Today it sells for about 17 a share.

    This is not the type of company I would want to invest in.

    You are a very smart person to begin investing at 16. I was about that age when I began. There are some stocks that I think offer you somewhat greater promise than DUK does. If you really want a high dividend here are a couple that offer a high dividend.

    ETP pays a dividend of 7%. Today it sells for about $50 a share. Ten years ago it sold for about $10 a share. Today its revenue is 5.4 billion. Ten years ago it was 242 million. Today it earns about 2.50 a share. Ten years ago it earned about 0.33 a share. Today the dividend is 3.58 a share. Ten years ago it was about 0.25. Other companies like this one are PAA, MMP, SXL, and KMP. They all pay a dividend at least as much as DUK and all have a better record.

    If dividends are not so important to you but you are interested in perhaps making some money from capital appreciation, you might consider ARO. This is one of my favorites for capital appreciation. No guarantees.

    You might also consider a selection of some of the blue chip companies such as MCD, KO, PG, VFC, or CLX.

    For a couple of more speculative selections there are F and SIRI. Not for those who might worry about loosing their money.

    You can access my blog at

    http://munciebirder.blogspot.com/

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1:03 pm on July 31, 2010