08-17-2014, 09:32 PM
Welcome to the forum!
You are kind of in the same position as myself with the real estate. I don't flip houses, but I do have one investment property and am trying to get the funds to get another one or two. I consider that a good aid to a diverse stock portfolio.
As for the stocks themselves, you are young and there is nothing wrong with a higher yield. You won't find too many dividend champions with a 4-5%. Personally, I have a few REITs and have been contemplating an MLP, but the rest of my portfolio are dividend champs. How many total stocks are you looking to have in your portfolio? MCD and TGT are great stocks. TGT has said they plan to increase their dividend quite a bit over the next few years. T, I own it and I am at a crossroads with it. The initial yield is nice, but their growth is only 3% or so a year. That's pretty terrible. Plus, the actual stock price hasn't moved much lately either. I am hoping the deal with DirecTV helps bring in much needed income.
One thing with DGI is the time held. Like you mentioned with your KO reference, it comes down to time. Now, imagine if you had free cash and added to each position when each stock is low. You won't be able to time the market, just look into dollar-cost averaging.
Good luck to you.
You are kind of in the same position as myself with the real estate. I don't flip houses, but I do have one investment property and am trying to get the funds to get another one or two. I consider that a good aid to a diverse stock portfolio.
As for the stocks themselves, you are young and there is nothing wrong with a higher yield. You won't find too many dividend champions with a 4-5%. Personally, I have a few REITs and have been contemplating an MLP, but the rest of my portfolio are dividend champs. How many total stocks are you looking to have in your portfolio? MCD and TGT are great stocks. TGT has said they plan to increase their dividend quite a bit over the next few years. T, I own it and I am at a crossroads with it. The initial yield is nice, but their growth is only 3% or so a year. That's pretty terrible. Plus, the actual stock price hasn't moved much lately either. I am hoping the deal with DirecTV helps bring in much needed income.
One thing with DGI is the time held. Like you mentioned with your KO reference, it comes down to time. Now, imagine if you had free cash and added to each position when each stock is low. You won't be able to time the market, just look into dollar-cost averaging.
Good luck to you.