I Just Bought $10,000 Of This Dividend Stock Today!
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Today I went ahead and bought $10,000 of a dividend stock and I want to share why I bought this specific dividend stock. Dividend stocks can be phenomenal for making dividend investing income and reinvesting that money into other stocks in the stock market.
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Good day subscribers hope you having a great day out there as always, oh my goodness I deployed a little bit of money into the stock market here today okay as in like another $10,000 into a dividend stock in today’s video I’m gonna disclose exactly why.
I bought $10,000 worth of this dividend paying stock what this stock is the cost basis I bought the stock at all those sorts of things make sure you smash that thumbs up button if you enjoy me sharing this with you guys here today. Okay, now first off here we’re gonna do a little guessing game on let you guys try to figure out what stock This is before disclose it to you came for the 350 members in my private stock group.
Please don’t ruin this for everybody else. You guys have already seen the screenshots you guys already know what this stock is. So don’t be a hero in the comments and be like blah, blah, blah stock like you guys already know what it is okay, don’t ruin it for everybody else is gonna watch this video. All right, but let’s see if you guys can guess what this stock is.
So I went ahead and bought $10,000 worth of stock once again, I’m gonna show you the screenshots exactly what this stock is and what not and what price we got it off. Now, this is a fashion company, okay, they’re in the let’s say fashion business, okay, on some very big brands and this stock is about 70% off of its 52 week high.
Okay, now 70% off of its 52 week high. So needless to say, this is a stock that has been absolutely cremated. Okay, when we’re talking about anything over a 50% decline from a 52 week high. Like that’s insane. Okay, 70% holy smokers, okay, this ain’t no joke, this stock has been absolutely decimated.
And it’s gotten to such levels that it has now attracted me, I’m looking at the stock. And I see this as a big potential opportunity. And when I look at the business overall, I’m like, this is a great, great company. Yes, it’s been destroyed because of a lot of things that are going on the market.
But it’s 70% off, its 52 week high, it’s just too much the valuation has gotten too compelling now, okay, they own two very, very strong brands, which we’ll get into in today’s video. And they also own one up and coming brand that is a growing brand. Okay, so that’s great. I love strong brand names, because strong brand names will get you through whatever is going on in the market at a particular time.
Okay, when their economy gets hit, when a recession gets hit, strong brands make it through. And then when everything picks back up, these are the type of brands that get more share than anybody out there. Okay, I love great strong brands, they own two great strong brands, okay, it’s a company has about 1.2 billion with a B $1.2 billion in cash and investments.
Now this is very good for two reasons. Okay. One is obviously it just lets me sleep better at night, a company that’s cash loaded in investment loaded, that’s a company that is very safe in terms of they’re not going to go out of business or something like that, even if a recession happens, or even if the market goes down for the industry at a particular time.
But also, it’s a company that’s going to be in a great position to buy other smaller fashion brands, if the economy continues to weaken. And we were actually have a recession, let’s say in the back half of this year, or in 20 or 20, or something like that, guess what a lot of other fashion brands might not be able to make it, they might not be able to stay profitable, they might need to sell out for a bad price.
And when you’re big dawg, you got $1.2 billion sitting around in cash and investments, you’re in a very, very strong position to go and acquire some other really good brands, but they might just be smaller brands that are going through some troubles at a particular time. Okay, I love great balance sheet.
This company definitely has a lot of cash and investments around. Okay, they literally just report their most recent quarterly numbers like less than 12 hours ago, okay. And this is a company that reported 150, almost $150 million dollars in net income, okay. net income.
This is in this is unbelievably impressive, okay, nearly $150 million on the bottom line net income in a quarter in which it was like it’s spring into summer, which is certainly not their strongest season, like their strongest seasons, always around Christmas time and whatnot, going into winter time in terms of their sales and whatnot, to get a spring into summer quarter, nearly $150 million of positive net income.
On top of that, you have the tariffs, you have the trade war going on, you have China business being pretty weak right now you have all those super big negatives going around right now for their company and for the fashion industry in general. And yet, this is still a business, despite all of that drama, still a business that was able to produce nearly $150 million in positive net income. That’s what I call a great business.
Great businesses are ones that can thrive and still make very nice net incomes, even when things are not going perfect for that business. And if I look at, you know, all those things, we talked about the trade war tariffs, China being a little weak, other markets around the world being pretty weak and whatnot. When I think about all of that going on right now, and.
I think about they nearly made $150 million of positive income. That’s a great business. Okay. Those are the type of businesses I want to be in that even when things aren’t going perfect. They’re still thriving. Okay, that’s phenomenal. This company has a market cap of about 5.6 billion billion dollars. And when I think about the brand names they own alone, that’s worth about $5.6 billion.
In my personal opinion, nevermind all the net income they produce and the balance, you know, those sorts of things and the management team at that company, the brands alone, in my personal opinion should be worth $5.6 billion. Okay, this is a worldwide business USA is their number one market, but they do do big business in Asia, okay, China, Japan, South Korea, as well as in Latin America, in Europe as well.
So they they’re a worldwide business or doing business all over the globe. Now, for the short term here, a lot of markets around the world are actually very weak. So that kind of hurts their business here in the short term. But what do we know about the world economy in general, most years, it’s going to be good most years, it’s going to be going up.
So as a worldwide business, it’s good for a long term. However, in the short term, sometimes it’s hurt. So they do have a diversified business. It’s not like they’re just dependent upon the USA market, although that is their number one market, okay, trailing p on this company of eight.
Okay, that’s really, really low. I mean, trailing peas on average, for most of the markets at anywhere from 16 to 18. Most of the time, when we’re talking about trailing P of a very, very low forward P of seven for peas on stocks, in general, are usually around like 14 to 16, so 14 to 16.
And this one’s at a seven, that’s like half of what the markets usually trading at on a four p basis. So very low valuation company, a company that’s still doing great numbers, despite everything that’s going on, okay, they own unbelievable brands 5.4% dividend yield on the stock, okay, bye, point 4%.
So assuming they just keep that dividend, assuming they never raise it or something, they just keep paying it out, I’ll get five plus percent for just owning this stock. Now keep in mind, I’m not just buying the stock for the dividend reason, okay, I believe we will make good gains on the stock price over the long term, which is why.
I will continue to buy the stock for at least the next month, if not next several months and build this into a really, really big position, I believe we’ll be able to collect five plus percent in dividends and maybe get on average 10 plus percent on the stock price per year, if you’re looking at this on a five year basis, or a 10 year basis or something like that.
So when I get those type of numbers, like I have to tell some stuff, okay, I have to take advantage of these type of things. Okay, they’re consistent dividend payer, each quarter, if you look at its past history, they’re very consistent payer of you know, quarterly dividends, year after year after year.
So isn’t like some company that just started paying dividends yesterday, it isn’t some company that just you know, a radically pay does pays dividends that very consistently quarter after quarter pay you out those dividends. I love that because that means the management team and the board of directors are very committed to paying out that dividend and they like have proven they can do it in the past, okay.
And this is a company with about a 60% payout ratio when it comes to dividends as of right now, which essentially means I have a lot of wiggle room to up that dividend in future years. Even if earnings per share were not to go up in future years now. I believe earnings per share will go up in future years.
Okay, I believe everything that’s going on short term is what it is, okay, the tariffs, the trade, war, all those sorts of things that will eventually dissipate, you know, eventually we’ll have a recession, the brands will have to go through that.
But coming out of that this is a company that’s going to be in a huge position of power and of strength, okay, and the brands they own, especially their main brand has been around for like 100 plus years, and it’s a brand that’s not going anywhere.
Okay. And what is this stock this stock is a company named tapestry Corporation, okay, ticker symbol, t, p r, all right. And one of our accounts in the public count, which is in my private stock group, we bought 370 shares of this stock here today, we got those 418 dollars and 83 cents, and that was right around a $7,000 move there.
And then I just started a dividend account as well in my private stock group. So this one can only be dividend stocks. In that particular account, just a small new one. I’ve made almost a $3,000 move there. 155 shares $18.78 I got that one out there.
And if you don’t know this company owns a, you know, three different brands, they own the coach brand, which is their main brand, which is unbelievably strong, been around forever as one of the best brand names when it comes to the fashion industry. Okay, then they own Kate Spade, also another phenomenal brand when it comes to purses and handbags and those sorts of things.
And then they also own their growing brand, which is Stuart Weitzman, which likely as long as they continue to roll that out properly, that should have huge growth going over the next 357 years. So when I look at this company, they know fortress of great brands and have good management team at this company.
And when things aren’t going perfect, which are certainly not going perfect for the fashion industry right now paying for all these companies that you know basically produce a lot of these products in China or overseas in general, like things aren’t going perfect and when you can still have $150 million dollars of net income in a three month span.
And it’s like a spring slash summer quarter. Like that is phenomenal. Okay, so when I see these type of opportunities, I’ve got to take advantage. This is probably not the last time I’m gonna buy this I hope it goes over I hope it goes in the 1716 maybe even $15 range we will continue to add shares and even if it was to go up a bit.
I would probably still continue to add shares even if it goes to like $20 $21 $22 because I believe this company is significantly undervalued, I believe even with the weakness and retail and whatnot that’s going on right now. Those are all short term worries short term things going on great brands make it through great brands make it through any type of tough times Okay.
All this short term mumbo jumbo negativity, guess what, when you own great brands they make it through when you have great management teams they make it through and when the you know the skies a little sunnier Guess who thrives more than anybody it’s always the strongest of the strong brands and when you look at coach unbelievably strong brand Kate Spade as well but especially coach and so the fact that.
I get to own a great dividend stock like this that should produce something great phenomenal returns in future years I’m taking full advantage of that and love the balance sheet they have a much better balance sheet than a lot of the other fashion names like Capri corporation which owns michael kors and Jimmy Choo like tapestry brands just has a much better balance sheet with them.
They’re loaded with way more cash and investments in somebody like them and like we talked about they’re going to be able to take full advantage if some other smaller fashion brands go through some tough troubles here over the next year or two Guess who’s can sweep in and take advantage of buying some of those great brands it’s a company like this okay big fashion house like this guys.
So anyways, let me know what you think I’m tapestry brains down there in that comment section. Let me know if you bought any stocks today and what your favorite dividend stocks are. I would love to hear from you. As always make sure you smash that thumbs up button. Thank you for watching. Have a great day.