DGI For The DIY

[fenders53]

(01-30-2021, 11:46 AM)EricL Wrote:

(01-29-2021, 07:07 PM)fenders53 Wrote: No matter what you do, use DEC 31 as a closeout point for the rule change and future tracking.  I would definitely pool my dividends. The justification for DRP is now in the past.  I stopped dripping quite some time ago.  You have decent income now and it be fun to pick where to put the next share.  

Don't beat yourself up for rimming your winners.  You are viewing it through bull market glasses.  What if you had trimmed a stock like BA just before they started crashing jets, or tech stocks before a hard tech correction?.  I would stick to my general rules.  Div cutters no longer fit the criteria.  You could trim slow growers too but that cuts back on some growthier stocks and the CAP appreciation you've benefitted more from than income growth.    

Just have fun, whatever you decide.  Build something that won't get crushed in a protracted stagnant economy.

I'm thinking I will let my last two dividends for January reinvest, and then make the switch on Monday. I can then modify the spreadsheet so that going forward I will have another column after my price returns for dividends paid, which can then be used to calculate total return for each position.

From this point forward I plan to hold all the current positions in the portfolio, and then make monthly or bi-monthly adds to bring some of smaller positions up in size, and also to perhaps add some names like APD, AMT, NKE, SHW, TSCO, MED, LHX, etc. that I've watched or own in other accounts but haven't been able to add here.

While I still strongly believe the DRIP is a good way to build long-term wealth, I prefer to be more active and this allows me to do that while also leaving my existing positions alone to grow. No more trimming to rebalance, just let them grow where they may. I've sold off what's turned out to be 36 shares of AAPL and 8 shares of MSFT in the spirit of rebalancing, and that's turned out to be a mistake.

In the spirit of debating things for no other reason other than our entertainment....  if the market got hit and AAPL or MSFT had pulled back 25% more than whatever you flipped into, would you then be prescient today?  Not really IMO.  We all look in the rearview mirror but don't dwell on it.  I know you are a long term guy but today you seem to be dwelling on 2020, about the craziest year ever.  You are going to DRP into something, so I see no advantage to auto dripping.  You hold a lot of positions for the size of this port.  Most every year there may be one that is heading down a wrong path.  Holding is generally good, and never selling is not good.  You are talented enough at this to direct where the new purchase lands, and you will be right often enough to make a meaningful difference in return over the next 10 years.  Auto-investing in mediocre made sense when commissions were in play.  I'd rather buy a full share of a great stock that dipped this month because the sector happens to be out of favor.  

And active is fun.  It does fit your personality and desire to research new opportunities..