(12-28-2020, 10:57 AM)pdaignau Wrote: What are people planning on buying with their 2021 IRA contributions? I'm still undecided.I own some T and used to own a lot more at times. FWIW it's an income stock period. It's a fake Aristocrat/DGI after so many years of miniscule raises and high debt and in my opinion you have to do some combination of the following to make it worth the risk.
Unrelated... Bought a few more shares of BABA. I've been working on a small position on the recent drops. I know it's not DGI, but I've seen people here talking about it.
- In my Roth I've been experimenting with higher yield (PCI, T, etc.). I'm thinking about something like QYLD.
- In my wife's Roth, I usually buy the best value/quality DGI stock I can. Nothing is jumping out at me, might buy into a DGI ETF (for now).
Paul
-never buy many, if any, shares when it is up above 30. You don't have to buy them all rock bottom but you better be adding when it is probing sub 27.
-enter by selling a put when it get's near the bottom of what you believe is the trading range. They will mostly expire worthless, so rinse and repeated until you get some shares assigned. Sell some calls, at least quarterly. The option income added to dividend income piles up.
-don't be afraid to trim some shares if you get lucky and the SP runs a few months after you bought low.
-it's pretty easy to collect 15% a year in a stock I consider a complete dog for the foreseeable future. If they get their act together and it runs past $40, oh well.
I'd go easy on high yield anything until we get a pullback. Most of the ones I follow always get smoked in a market downturn. When the credit markets get scared they suffer.