10-10-2020, 12:58 PM
I purchased 40 shares of Lowes roughly 9 years ago through ESPP at an average of $21.40 a share. More about that later.That was my first foray into stocks and the past few years I've dabbled a little more but never really got serious about it. The past year and a half I've learned a lot and now actually do a ton of research into stocks before I buy rather than just pick a company I like. Since March I've really ramped up my buying because I recognized a lot of stocks were unduly punished.
I've really honed in my process of picking stocks. My plan is to pick solid companies that are undervalued and have a safe dividend above 3%. I typically only buy roughly $150 at a time. I know I'm a small timer but hey gotta start somewhere.
Currently that initial purchase of Lowes has a return of 716%. Unfortunately, at the time I had no clue and never did any dividend reinvestment. Lowes is currently 68% of my portfolio and I was going to just keep buying stocks in other sectors till I'm properly diversified. It hit me yesterday that it is currently at all time highs of $173 and only has a yield of 1.39%. Why wouldn't I sell a good chunk of it and buy other higher yielding stocks?
I can't think of much downside to that. I'll become more diversified, be earning a higher yield, and should be able to have higher returns overall as I feel Lowes is properly valued and I would be purchasing other stocks that are not.
I feel its the right choice but i guess I'm just looking for validation. Thanks!
I've really honed in my process of picking stocks. My plan is to pick solid companies that are undervalued and have a safe dividend above 3%. I typically only buy roughly $150 at a time. I know I'm a small timer but hey gotta start somewhere.
Currently that initial purchase of Lowes has a return of 716%. Unfortunately, at the time I had no clue and never did any dividend reinvestment. Lowes is currently 68% of my portfolio and I was going to just keep buying stocks in other sectors till I'm properly diversified. It hit me yesterday that it is currently at all time highs of $173 and only has a yield of 1.39%. Why wouldn't I sell a good chunk of it and buy other higher yielding stocks?
I can't think of much downside to that. I'll become more diversified, be earning a higher yield, and should be able to have higher returns overall as I feel Lowes is properly valued and I would be purchasing other stocks that are not.
I feel its the right choice but i guess I'm just looking for validation. Thanks!