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SEEING YELLOW. STB. BUY

September 22, 2014  Go to “Core Portfolio” for current holdings.  Hit the “Follow” button to get updates.  Today I am looking at a Company that you have probably never heard of.  But I will bet a dollar that you have seen their yellow bus fleet transporting students around the neighborhood.  In fact they practically run me over every day as I go biking past the local schools.

So who is this mystery outfit that Cramer never talks about?  Or anyone else for that matter.

Student Transportation STB

I like this type of dividend investment because it’s a steady eddy:  the need for transporting the kids is not going to end.  There is no drama here.  Just steady dividends that will come in as far as the eye can see.

If you look at the charts the pricing as been virtually flat for years.  So you will NOT see stock appreciation, but you can bet on the income.

And the income is sweet:  just under 9%.  Can’t beat that with a stick.  BUT having said all that I am placing this single stock in the high risk category SPECIFICALLY because it is a single stock.  I do not like buying single stocks.  It is too risky.  But I am buying a small position for the income.  Also keep in mind rising interest rates could hurt this stock.

I am buying a small amount to start.  And will add when appropriate.  When you start dabbling in individual stocks like STB you take on more risk.  I am not saying the stock itself is risky BUT the focus on a single position means you are inherently assuming more risk.  I like to spread the risk around by buying diversified funds.

Try to buy below $6.38

 

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One comment on “SEEING YELLOW. STB. BUY

  1. Very good blog post. I absolutely appreciate this website. Thanks!

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