07-13-2021, 07:08 AM
(07-13-2021, 04:50 AM)fenders53 Wrote: Can't sleep so here is another method for DGI. You have 6 core Aristocrat level stocks. Just an example but say LOW has historically yielded between 1.5% and 4%. History says purchases above 3% turn out great and below 2% you are usually waiting a long time for out performance. You could literally not look at the stock price and make purchases with a high chance of success. This does not work on stocks with unreliable dividends.
It's what NilesMike mentioned when you started your DGI. The market's current valuation puts most stocks in the don't buy range unfortunately.
Right; makes sense because a high yield percentage correlates to a moderate stock price.
As for most of the equities being in the "don't buy range", well I'm not buying in a vacuum. The bulk of the DGI part of my portfolio (as well as the Income portion) was obtained from a cashout refinance. The value of my house goes up or down regardless of the principal, so that money was literally doing nothing for me except keep my monthly payments lower. Now that's it in the market, it pays me dividends to help offset that monthly payment difference, and has grown modestly (or in cases like Target, exceptionally). I do agree that even March was better for buying stocks than right now in July. Heh, I don't have any new money anyway. The other contributor to my portfolio has been lateral moves of cashing out company stock to buy something different over in the E*Trade account, which we've already discussed is by and large a worthy enterprise. We'll see what's reasonably valued when the trading window opens again.
Much of my financial future still rests not on the market, but whether my daughter goes right to college, or stops to work for a while. Because child support ends after she graduates high school if she goes into the work force, but continues if she goes to college. Obviously I'm not going to say a word if college is her choice, but she has mentioned (on her own) recently the idea that she'd work at a pet store or vet's office after high school.