08-20-2014, 02:37 PM
Agree completely with all of the advice you've gotten in this thread so far.
Once you've built up a good core pile of high-quality dividend growth stocks and are comfortable with the investing style and the process, then (and only then), I think it is not a bad idea to take a very very small chunk of your new money (like 1 or 2%) and put it into more speculative stocks. Done well, the early years of DG investing is like watching paint dry (though later, once the compounding machine really gets going, it becomes quite fun). So during the boring phase, I think it can make sense to have a very small stash of play money to scratch the trading and speculation itch -- so long as you know that you have the discipline to not let it mess up your core strategy.
That said, I'm not sure I'd put even my tiny amount of play money into SDT. High-yield is one thing, and the market can certainly be wrong and irrational, but no way the market overlooks a 26% yield if there is any chance of a turnaround there.
Once you've built up a good core pile of high-quality dividend growth stocks and are comfortable with the investing style and the process, then (and only then), I think it is not a bad idea to take a very very small chunk of your new money (like 1 or 2%) and put it into more speculative stocks. Done well, the early years of DG investing is like watching paint dry (though later, once the compounding machine really gets going, it becomes quite fun). So during the boring phase, I think it can make sense to have a very small stash of play money to scratch the trading and speculation itch -- so long as you know that you have the discipline to not let it mess up your core strategy.
That said, I'm not sure I'd put even my tiny amount of play money into SDT. High-yield is one thing, and the market can certainly be wrong and irrational, but no way the market overlooks a 26% yield if there is any chance of a turnaround there.