04-29-2020, 05:10 PM
(04-29-2020, 03:11 PM)EricL Wrote: Not to toss more kindling into the fire, but I'd be concerned about CTL too. It's got a junk BB credit rating and has already cut the dividend twice in the last decade. It wouldn't surprise me at all if they cut again in the future. Considering it's your highest dividend payer, that might be something to consider.I couldn't agree more. I was a little older than you but I had nobody to help me and the internet was very new. No kidding I incinerated over $20K. Back then that would have bought a new car and a good fishing trip. My wage was about $10/HR to put that in perspective. It was a big deal to me and I didn't realize for years it was my own lack of knowledge that caused it. That was a real bad experience that should have made me quit but it didn't. I keep my mistakes small now that my port is large.
At your age just stick to companies with BBB+ or higher credit ratings in non-cyclical industries and you'll do just fine in the long run. Don't be enamored by high yields. You don't need the income now, and they generally offer lower growth and more risk than other stocks.
Focus on the GROWTH in DGI rather than yield. It's not a get-rich-quick method of investing, it takes years for the snowball to grow.
Don't get discouraged though! Now is the time to take some lumps and learn from the school of hard knocks. It's much better to make the mistakes now with a small portfolio so when you have a big one at retirement you know what you are doing by then. =)
If I could make a suggestion you need a half dozen core anchor stocks that won't go out of business, and most likely will not only maintain the dividend, but increase it every year. That might require you to sell some of your current holdings to finance the switch. There is nothing wrong with holding a few speculative stocks, as long as you know the difference and are OK with the risk of that part of your portfolio.
"Invest in what you are knowledgeable about or interests you" is a great place to start a portfolio. You tell Eric and I what interests you and we can help you pick some of your stocks to match your passions. Computers, aviation, medicine, finance, recreation, whatever it may be.... I bet we can find some companies that will survive and pay you dividends for years. With the market still down some, 3-4% dividends can be had with safety. Don't chase the much higher Divs other than a small part of your port you know is speculative. It's OK to lose a little money on those plays. It's actually good at your age. The experience will save you a helluva lot of money 10 years from now when your port is large.
This game isn't easy. If it was Eric and I would never make a mistake after all these years. I know I still make bad decisions, but I won't let a few bad calls wreck my entire portfolio. It's easily avoidable with a bit of experience.