10-30-2013, 02:58 PM
I think dividend growth investors definately need to do a thorough current financial analysis before making a decision of buying a company. We can't just buy companies off some list at random. We need to make sure current valuation makes sense.
But once the decision has been made that this is a company you want to own and trading at a fair value that you're willing to pay, then I don't think the dividend growth investor needs to waste time worrying about technical trading trends or setting limit orders.
Over the long term (and dividend growth investors should definately be long term investors) it's not going to matter if you were able to purchase your shares a little cheaper. The long term returns will dwarf any gains you achieve by using technical analysis or limit orders to make your trade.
Just my opinion anyways.
But once the decision has been made that this is a company you want to own and trading at a fair value that you're willing to pay, then I don't think the dividend growth investor needs to waste time worrying about technical trading trends or setting limit orders.
Over the long term (and dividend growth investors should definately be long term investors) it's not going to matter if you were able to purchase your shares a little cheaper. The long term returns will dwarf any gains you achieve by using technical analysis or limit orders to make your trade.
Just my opinion anyways.