02-12-2019, 12:44 PM
(02-12-2019, 12:02 PM)Otter Wrote: That said, you might give some consideration to a valuation-based approach to your purchases, staging them over time. Whatever is not deployed into equities of fair or better value can be parked in short-term fixed income to provide a safe income stream while you wait for value to develop. Set a target P/E, Chowder Number (this incorporates both current yield and growth prospects), Credit Rating, DGI history (years of historical consecutive raises), and Dividend Payout Ratio threshold for your purchases (your baseline for fair value). Buy DGI stocks on your list when they are at or better than your value target.
Great idea, and probably how I'd tactically do this. I'd probably spread the purchases out over a few months and use valuation to guide the buying.