{"id":541620,"date":"2017-08-22T12:30:00","date_gmt":"2017-08-22T12:30:00","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=541620"},"modified":"2017-08-22T12:30:00","modified_gmt":"2017-08-22T12:30:00","slug":"zach-scheidt-heres-my-favorite-faang-stock-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=541620","title":{"rendered":"Zach Scheidt: Here\u2019s My Favorite FAANG Stock\u2026"},"content":{"rendered":"
\"Zach<\/a><\/div>\n

By Zach Scheidt<\/a><\/span> <\/p>\n

<\/div>\n

This post Zach Scheidt: Here’s My Favorite FAANG Stock\u2026 appeared first on Daily Reckoning.<\/p>\n

To Buy or Not to Buy? That Is the Question\u2026<\/p>\n

Every week, I get plethora of emails asking the same questions\u2026<\/p>\n

\u201cWhen are we going to invest in Facebook?!\u201d<\/p>\n

\u201cWhy don’t you recommend investing in Amazon?\u201d<\/p>\n

\u201cWhich FANG stocks are your favorite?\u201d<\/p>\n

With so many questions, I’d like to address the elephant in the room\u2026 FANG stocks \u2014 the $1.648 trillion behemoth\u2026<\/p>\n

If you’ve watched Jim Cramer, you know FANG is an acronym for NASDAQ tech heavyweights that seem to keep going up no matter what the market wants to do.<\/p>\n

I am talking about Facebook, Amazon, Netflix and Google.<\/p>\n

Four companies. Close to $2 trillion in combined market cap.<\/p>\n

Always going up\u2026 Always in the news.<\/p>\n

While FANG stocks seem to always be lumped as a single entity, these companies look completely different in terms of business model and financial health.<\/p>\n

Some components of FANG are better than others\u2026 but the bottom line is I haven’t recommended a single position in these highflying tech companies because they don’t meet my investing criteria.<\/p>\n

For those of you who aren’t Lifetime Income Report subscribers, the pillars are:<\/p>\n

\u203a\u203a Buy stocks that protect your capital<\/p>\n

\u203a\u203a Buy stocks that grow your income<\/p>\n

\u203a\u203a Buy stocks that pay an attractive yield.<\/p>\n

If a company doesn’t pay a dividend (which FANG companies don’t!), it automatically breaks the three pillars for a variety of reasons.<\/p>\n

Dividends are a portion of a company’s earnings paid out to investors. And if a company doesn’t pay out a yield, clearly it cannot grow your income. That fact alone takes care of pillars two and three.<\/p>\n

But what about the safety and protection of your capital?<\/p>\n

Companies that don’t pay out a dividend actually have much more risk than companies that do.<\/p>\n

Here’s why\u2026<\/p>\n

When the stock price drops for a dividend-paying stock, the yield increases. When the yield increases, investors are attracted to the higher yield.<\/p>\n

Therefore, the dividend provides a support base for the stock price.<\/p>\n

And if you are in a DRIP plan, a drop in the stock price allows you to accumulate more shares at regular intervals, therefore increasing your dividend payments and compounding your returns.<\/p>\n

But with FANG stocks and other non-dividend-paying companies, if investors get spooked, there is no benefit to sticking around. Investors will run and the price will plummet.<\/p>\n

However, a dividend does not necessarily mean a company is safe. There are plenty of companies that pay dividends and are still risky investments. That’s why it’s necessary to do a thorough analysis.<\/p>\n

But the question is\u2026 if FANG stocks did pay dividends, would we buy?<\/p>\n

And either way, how do we play the NASDAQ hot streak if we aren’t investing in FANG companies?<\/p>\n

Here are the answers\u2026<\/p>\n

[For the analysis below, let’s assume each FANG company pays a 3.0% annual dividend. And at the end, I will recommend the best way to play the NASDAQ hot streak!]<\/p>\n

Facebook<\/p>\n

As the world’s largest social media platform, Facebook has made a tremendous run these past three years, growing revenue by 52% a year and net income by \u2026read more<\/a> <\/p>\n

Source:: Daily Reckoning feed<\/a><\/p>\n

The post <\/a>Zach Scheidt: Here’s My Favorite FAANG Stock\u2026<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Zach Scheidt This post Zach Scheidt: Here’s My Favorite FAANG Stock\u2026 appeared first on Daily Reckoning. To Buy or Not to Buy? That Is the Question\u2026 Every week, I get plethora of emails asking the same questions\u2026 \u201cWhen are we going to invest in Facebook?!\u201d \u201cWhy don’t you recommend investing in Amazon?\u201d \u201cWhich FANG […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/541620"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=541620"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/541620\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=541620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=541620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=541620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}