01-07-2018, 07:06 PM
Hey Jdiv, that's a good start!
I would recommend a few things. When I started, I was doing something similar, buying according to whatever articles I was reading. But then I realized it would be more effective to have a systematic, well thought-out approach that would be as scientific as possible.
1) First, I wrote down my goals and what was important for me. These were my guidelines for future investments. For me, a safe, ever increasing stream of dividends is my priority. these dividends need to be paid and need to increase independent of the market conditions if I want to use them during retirement.
2) I realized I needed to invest in quality stocks and that I needed to invest a good chunk of my portfolio in more defensive stocks. (typically, defensive sectors are consumers staples, utilities and healthcare)
3) I use Dave Fish's list of dividend growing stocks
4) I look for those that have increased their dividends even during last recession
5) Of those, I look for those that have investment grade ratings. I like a minimum of BBB+ or A-
6) Of the remaining stocks, I look for those with an acceptable current yield and respectable expected dividend growth rate.
7) Now you should be down to ~100 stocks. You should check the story of each one to determine if they are good long term holdings (long term would be >20 years). For the more qualitative aspect, I use Zacks, Morningstar and Valueline reports.
I get the credit rating for free from s&p site.
Alternatively, one could invest in an ETF that does this job for you. SCHD looks very good in that perspective. You could look at the holdings of this ETF for some ideas too.
Hope this helps a bit.
I would recommend a few things. When I started, I was doing something similar, buying according to whatever articles I was reading. But then I realized it would be more effective to have a systematic, well thought-out approach that would be as scientific as possible.
1) First, I wrote down my goals and what was important for me. These were my guidelines for future investments. For me, a safe, ever increasing stream of dividends is my priority. these dividends need to be paid and need to increase independent of the market conditions if I want to use them during retirement.
2) I realized I needed to invest in quality stocks and that I needed to invest a good chunk of my portfolio in more defensive stocks. (typically, defensive sectors are consumers staples, utilities and healthcare)
3) I use Dave Fish's list of dividend growing stocks
4) I look for those that have increased their dividends even during last recession
5) Of those, I look for those that have investment grade ratings. I like a minimum of BBB+ or A-
6) Of the remaining stocks, I look for those with an acceptable current yield and respectable expected dividend growth rate.
7) Now you should be down to ~100 stocks. You should check the story of each one to determine if they are good long term holdings (long term would be >20 years). For the more qualitative aspect, I use Zacks, Morningstar and Valueline reports.
I get the credit rating for free from s&p site.
Alternatively, one could invest in an ETF that does this job for you. SCHD looks very good in that perspective. You could look at the holdings of this ETF for some ideas too.
Hope this helps a bit.