Payday Loans

It has always been my policy to stay away from payday loans. Until recently, even a cash advance on one of my credit cards would have been preferable to borrowing money from cash advance, title loan or payday loan companies. That being said, if a person has no other recourse and they are absolutely sure they can pay the money back, as agreed, then I could see using them, but only as a last resort.

Needless to say, not everyone agrees with me. Which really has worked out good for me in the sense that I've been able to make some tidy profits trading their company stocks. My most recent trade (AEA) netted me a near 100% gain in just a few short months. I've recently purchased more shares of AEA (Advance America Cash Advance Centers) on a pull back in price. Even if I don't make a quick gain like last time, they are paying an attractive dividend and from their earnings, it looks to be sustainable. So either way, short trade or long term investment, it should work out pretty well.

As a rule though, I would still advocate avoiding payday loans if at all possible.

Changes To My Stock Investments

In the previous article, I mentioned I was selling my stake in Altria Group (MO) since I'm pretty much convinced they are in a declining business. I've decided to re-invest the money in three stocks:

Advance America Cash Advance (AEA)

I previously invested in Advance America for a quick trade profit and made over a 97% gain. I've come back for a second, longer term investment for the dividend.


Windstream Corp. (WIN)

A rural telecom with promising numbers and a great dividend payout.


Merck & Company Inc. (MRK)

I'm adding to my long term investment in Merck. I've made quite a bit of money trading their shares in the past. Now I'm holding on for some dividend cash.


By dividing the money up between the above stocks I should lower my risks and increase my dividend income per dollars invested.