08-11-2018, 10:08 AM
(11-18-2013, 11:47 AM)cannew Wrote: -
Rule: “It’s not which stock to buy from my list, but the price I am able to buy it at.”
Example: I believe GE should have been on most dividend growth lists. But in June 2009 it cut the dividend from .31 to .10 cents and it's average price dropped from $35 to $12. Therefore if I still believed in the company at that time, I would have bought more shares during its low $7 to $12 (thereby reducing average cost). The price is up to $27 while the dividend is up to 19 cents.
Rule 1 is executed in my investing by waiting for a stock on the list (around 40 names) to drop 20%. I then initiate a 1/2 position. If it drops another 20% the other gets bought.
If it doesn't drop the second 20% the $$ goes back into the pot looking for the next bargain.
Rule 2 is sell only if/when the dividend gets cut.