Days Like These – Dividends Are Good
- 7 Comment
It is days like today when the market has dropped a whopping 416 points when the effects of dividends really comes into effect. The most telling thing about today is that if you look at the Dow winners and losers, there was not one winner – that is to say there was not one stock in the Dow 30 that was up today. You can see that here. Disney was down 5.2%, my own Procter & Gamble was down 4.95%, as was Coke (down 2.79%). In fact, I went from a portfolio that was up about 4% yesterday to being down 0.3% today. I am sure the action on Wall Street was crazy today and around the world there are investors looking at their accounts with dismay. However, this is only one day in the long term outlook of dividend investor.
The market will do this from time to time. There will be some major event that sets a market that is already on the breaking point to drop precipitously. Today, worries over China was the instigator. The important thing that investors need to do today, IMHO, is to continue to think long term. The market will come back – it may not be tomorrow, it may not be in a year, but it will come back.
My strategy is to stick to my strategy of buying high quality stocks that continue to increase their dividends – this provides me with that steady income as stock prices fall. At least I am getting some sort of return. I will also keep focused on my asset allocation looking for small cap stocks that will balance my over-weight big company allocation. Slow and steady wins the race as they say.
7 Comments on this post
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Gary Williams said:
Today I too took solace in the fact that 100% of my portfolio is dividend-generating. Actually, in some sense, lower share prices are good for us since it means we’ll be able to buy more shares when we reinvest our dividends.
February 27th, 2007 at 8:10 pm -
Re: money said:
And I took the solace in the fact that our stock holdings only amount to about $2,300 at the moment
Gary Williams, that is exactly what I thought: I have been watching several stocks and now that they’re cheaper I’m even more interested. Isn’t that what they say – when everyone panics and stock prices drop, it’s the right time to buy.
February 27th, 2007 at 8:53 pm -
Grant said:
Amen to that, Divy Guy! You can’t beat a good dividend, especially in a market environment like this.
What do you think of Greenspans comments, think they’ll continue to carry any weight?
-Grant
February 27th, 2007 at 10:30 pm -
Vicks said:
I agree,
This is exactly why I love dividend investing, it does get a little boring but most of the time big drops like that don’t affect me anyway, it does however show up in the value of my investments, but this is why we buy and NEVER sell.
Vicks
February 28th, 2007 at 6:26 am -
Brian Baillet said:
Hello everyone
Just found this blog again looks like some very good information on here. I have a question maybe someone will be able to answer. 1)I am looking for some financial planning software. Quality, all in one, free is good but I’m willing to pay. Morning Star is good but will only hold 25 positions, not enough, so far fantasitic for finding out asset allocation but not for selecting percentage’s and monitoring. Have downloaded a demo of Financial Planning spread sheets, looks good but not a very good user interface. I understand In-sync from Aim is very good but they requires a dealer rep code. Any suggestions?
2) I drip, I buy mutual funds, cash, Gic’s real estate I’m trying to get out there on the efficeint frontier and asset allocate. I need an All-in one account all within the same institution that will sweep checking accounts into money market funds, offer discount broakerage, loans, credit cards ect ect. I want to maximize all I have any have any idea’s on this one, thanks?February 28th, 2007 at 8:51 pm -
Adventures In Money Making said:
I bought HMA. it paid out a $10 dividend, got de-listed from the S&P500 index and was still up 4% on a day like today.
any idea why?
March 2nd, 2007 at 8:23 pm
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