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Gotta a question. What kind of analysis can you make with the % held by insiders vs. % held by institutions?
As an account holder with Charles Schwab, I have access to their online research portal. They show the % of institutional ownership for a given stock, but not the % insider ownership. There is a website that tracks insider movements (buys, sells).
I recently added a little MRK to my childrens college fund account. Good, safe investment in drugs as we move towards the baby boomers elderly years, plus a decent divy.
I bought MRK four years ago, after the Vioxx lawsuit threat drove the stock price down down down. It has a nice dividend yield, but they have not increased their dividend (still $0.38 per share). Thus, the annualised dividend growth rate (DGR) -which is how quickly my dividend payments are increasing- is only 4.1%.
By contrast, Johnson & Johnson (JNJ), purchased 3.5 years ago, has increased their dividends and has an annualised DGR of 14.5%. Since late in 2005, they have increased their dividend from $0.33 per share to $0.49.
The annualised DGR is the primary metric by which I compare my stocks. It is akin to an interest rate paid by a bank on money on deposit. You can calculate how quickly your dividend payment will double, by dividing 72 by the annualised rate.
Thus, MRK dividend payments will double every 17.5 years. JNJ payments will double every 5 years. (Caveat: at the current DGR, assuming steady state.)
I've had BAC for almost two months now, but like you, want to get rid of C which has languished for quite some time, to get some more BAC. I am also trying to find some in other sectors. Any opinions on MRK, TIE, TX, MDR, MEE, and HD for long term?
I recently purchased MRK for the IRA, considering HD and some homebuilders as they are down, I in a couple years they will come back. Also got another chunk of KMP and MTW.
As an account holder with Charles Schwab, I have access to their online research portal. They show the % of institutional ownership for a given stock, but not the % insider ownership. There is a website that tracks insider movements (buys, sells).
I also use Schwab, but MSN money has lists of insider transactions. Large institutional ownership usually means a company is well thought of. But if they stumble the big boys can give it a 20% haircut. I learned that with PFE a few years back.
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