04-03-2014, 01:40 PM
I got into DG investing because of The Connolly Report, and his rule is: "When they are value priced, I buy dividend-growing common stock and hold them for the income".
He also states "that your long term returns will be determined buy the price you buy at".
The question is what do you consider "value priced". For the average investor forget the "buy low", that's a fools game because no one knows when or how low a stock will go. What you have to do is decide on an entry point for each stock that will represent value to you (improve your income, your yield on investment, or lower your overall cost). Then buy. If the stock goes even lower, buy again. In the long run your returns will be good, maybe not the best (based on the best possible price), but it should be better than buying without a plan. If the price is above your buy price, wait.
He also states "that your long term returns will be determined buy the price you buy at".
The question is what do you consider "value priced". For the average investor forget the "buy low", that's a fools game because no one knows when or how low a stock will go. What you have to do is decide on an entry point for each stock that will represent value to you (improve your income, your yield on investment, or lower your overall cost). Then buy. If the stock goes even lower, buy again. In the long run your returns will be good, maybe not the best (based on the best possible price), but it should be better than buying without a plan. If the price is above your buy price, wait.