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First batch of DGI stocks to buy
#11
Make your list of quality DGI stocks, no limit as to the number of tickers.

Divide your available investment cash pile into 20 lumps.

When a stock on your list drops 10% off a prior high, you buy it with one lump. If it drops another 10% you spend the second lump on it.

Some will fall even lower of course but you have bought at reasonable prices and should be able to withstand some drawdown.

Others will pull back 10% and zoom, leaving you only 1 lump invested-for now.

Just be patient and buy what your analysis shows are quality stocks.

Pull up some charts on the Aristocrats and you will see how well this simple method works, especially if you have time on your side-unlike Fenders and me.
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#12
(03-06-2021, 12:17 PM)NilesMike Wrote: Make your list of quality DGI stocks, no limit as to the number of tickers.

Divide your available investment cash pile into 20 lumps.

When a stock on your list drops 10% off a prior high, you buy it with one lump. If it drops another 10% you spend the second lump on it.

Some will fall even lower of course but you have bought at reasonable prices and should be able to withstand some drawdown.

Others will pull back 10% and zoom, leaving you only 1 lump invested-for now.

Just be patient and buy what your analysis shows are quality stocks.

Pull up some charts on the Aristocrats and you will see how well this simple method works, especially if you have time on your side-unlike Fenders and me.
I like Mike's plan even better than the paragraphs I already typed.  Excuse me original poster while I talk about you right in front of you.  Smile  You clearly prefer planning things out neatly and that's great.  Here is what I smelled coming next week when I read the first post. "I just put about 5% each in these 20 DGI stocks because I got some cash coming soon."  Yeah don't do that because it's not wise lol.  Smile  I'm sure you'd like to knock some of the volatility out of you leveraged port after this weeks beatdown?.  Buying a bunch of stodgy companies near all-time highs may not give that result. The market has shifted to value, for now.  

Make your list and Mike is right, no length limit with one caveat. You do some DD and put no crap on your list. We are never too shy to tell ou when you come up with a bad idea. Kidding but not really. I'll stick with my earlier advice.  I'll sell it and buy a share of something else. What's the harm in a no commission world?  Grossly overpay and you will question the DGI strat for years.

Restated, Mike and I aren't so arrogant to think we can time the market, but we know a frothy market when we see it.  You aren't old as a dirt clod like Mike Smile, but you don't have 45 years to compound either so valuation does matter.  It's been said our total return is predestined the day we purchase.  I have found that to be true when buying mature companies.  JNJ isn't likely to run 3X in 10 years so we shouldn't pay the 52WK high price.  JNJ is a handy example because it actually is down about 10% and ready for a purchase IMO.  And you don't have to buy at down 10-20-30.  I'd probably tweak those numbers.  It could lead to you skipping the very best DGI stocks because the lesser dropped much faster as they are inclined to do.  The initial list is important so you aren't sifting through dumpsters for a dividend stock down 20%. It's OK to buy a share of an overpriced company to get it in the port. I have found that useful inspiration. I have also sold off a couple shares that ran 40% before I had a chance to build a position. That stinks but better than a poke in the eye. Smile I bought two shares of GNRC and it promptly ran $70 on a week of bad TX weather. I sold it because I thought it was gone forever and lookie there, it's dropped $50 in just a few weeks. I might get another chance to buy it like I mean it. It's hard not to force trades, or beat yourself up in the short term for missing one.
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#13
Those are all great companies but just be careful buying any of those names. Most are at or near all time valuations. When I buy DGI companies I buy them at decent valuations or you will end up having to average down just to break even. Its better to buy when there out of favor. This way you get more bang for your buck. If you buying these now start out slow and dollar cost average in on every $5-10 dip.

There are however some names I would be buying now like APD, AMT, COST, AWK, WEC, ETR, MSFT just to name a few

Those are good paying dividend stocks that have come down lots from the highs and are getting to PE levels not seen in a while.

Anyway that's my 2 cents. I would have written a book here but the dividend stocks are too pricey for me now to go all in. Tech is over valued as well but with those names at least your getting growth and have a dip lol.
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#14
That's been a problem for awhile if you suddenly desire a DGI port of size.  The core portion of a successful DGI port needs to be very high quality as very long hold should be the plan.  It can mean sitting on too much cash.  Averaging in as a new investor works fine though.
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#15
A lot of advice to digest here. I'm quite nervous, because I recognize this is my one big chance to shape my portfolio so that it grows properly over the next dozen years. I won't necessarily retire at 60, but I want to be able to. I've got about a week before the money is available for investing, so that gives me some time to come back with an updated list and this time I will supply justifications for each. With this recent drawdown it feels like the funds are coming at the perfect time.
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#16
There are some better DGI values now but they are still scarce. Is the broad market even down 5%? No need to panic buy. There should be a few deals to entertain you with some buys. A list WITH DD means there is a plan. Mike's 10% off idea already has a few candidates in stocks you have mentioned.
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#17
Take a look at IQT to help develop your idea of when a ticker is well priced or near the top based on historical dividend yield.

And full agreement with Fenders, money is made when you buy. Stocks, cars. real estate buy right sleep tight.
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#18
Even looked at strictly from an income perspective, assuming 10% is the best deal you can find for your initial round of purchases on the good ones. Starting yield already includes next 1 to 2 div raises. 10% more shares owned for same money. Even in only 15 years that will compound notably.
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#19
List updated with latest research. Can't believe I missed Taiwan Semiconductor on the first go.

Next up is a scoring algorithm. I saw a thread here in which Kerim made one, so I will find that and see what he did.
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#20
(03-12-2021, 08:29 AM)ken-do-nim Wrote: List updated with latest research.  Can't believe I missed Taiwan Semiconductor on the first go.

Next up is a scoring algorithm.  I saw a thread here in which Kerim made one, so I will find that and see what he did.
MUCH better list than a week ago.  Now pick your spots for entry.  If you just gotta have a stock in your port and you missed the dip then buy a couple shares to humor yourself.  If this is truly a long-term port you'll get another chance to add.  You'll miss the bus on a couple doing that but just move on.  You'll never get it perfect.  It might take you a year to get it balanced and diversified.  There is not a 30 day time limit to employ your cash.  I say this for a reason.   

I enjoy these threads.  I'll share my favorites from your list soon but don't want to complicate this causing excessive indecision.
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