I know it's hard to think of buying stocks when we see the kind of price drops we've seen recently, mostly due to the trade war with China and the weakening yuan. However, as a dividend investor I'm seeing an opportunity to load up on more dividend paying stocks at much lower prices. Simply put, each dollar I invest is buying me more dividend income than before. So while the trade war is bad for stock market prices, it's good for dividend yields. I plan to strike while the iron is hot and add as much new dividend income as possible.
While I mostly invest for dividends, I recently added a couple of bio-pharma stocks to my portfolio. They are penny stocks paying no dividends but with a tremendous upside potential. I'm hoping to make a quick profit in these and reinvest in a few more speculative stocks. Risky yes, but the possible rewards may make it all worthwhile. I'll let you know how it works out.
Wednesday, August 7, 2019
Wednesday, July 17, 2019
INCREASED MONTHLY DIVIDENDS ANOTHER 2% WITH PURCHASE OF LKSD!
Made a risky stock purchase today, buying shares of LKSD while the company is going through a rough patch. Not sure whether they will pull out of it or not, but I'm not risking much money here and I did increase monthly dividends by 2%, while I wait to see how things pan out. LKSD has a 52 week high/low of $15.88/$3. They pay a quarterly dividend of 26 cents per share for a dividend yield of 27.44% on the recent price of 3.46. The fact that they're still paying the dividend and the price is moving up made me decide to invest a small amount. If they go to zero and I lose my total investment, it will be very little compared to my overall portfolio. However, if they manage to show some improvement, which I'm sure they're working on, then the rewards could be great for such a small buy in price. In the mean time, I'll enjoy collecting the dividend, as long as they continue to pay. Should they cancel the dividend all together, I'll sell out my shares and move on.
I've gotten to the point where a great deal of my new investments are paid for with dividends from my current investments. Meaning little or no cash out of pocket. I purchased my stake in LKSD with one month's worth of cash dividends. I'm still reinvesting over half of the dividend payments I receive in more shares of current holdings, while taking the other half in cash to add new investments. I'm also still adding additional cash to my taxable account, the IRA, the ROTH IRA and my 401k. I'm beginning to see amazing results of late, the snowball effect is really starting to kick in and overall balances are rising rapidly.
Been seeing the same thing happen in reverse with my old debts. Every month I pay less in interest and more on principle. By May of 2020, I should be getting near debt free! Then I'll be free to put all that money to work building my investments at a phenomenal rate! I'm very excited about the whole situation!
I've gotten to the point where a great deal of my new investments are paid for with dividends from my current investments. Meaning little or no cash out of pocket. I purchased my stake in LKSD with one month's worth of cash dividends. I'm still reinvesting over half of the dividend payments I receive in more shares of current holdings, while taking the other half in cash to add new investments. I'm also still adding additional cash to my taxable account, the IRA, the ROTH IRA and my 401k. I'm beginning to see amazing results of late, the snowball effect is really starting to kick in and overall balances are rising rapidly.
Been seeing the same thing happen in reverse with my old debts. Every month I pay less in interest and more on principle. By May of 2020, I should be getting near debt free! Then I'll be free to put all that money to work building my investments at a phenomenal rate! I'm very excited about the whole situation!
Monday, May 13, 2019
PANIC OVER CHINA TRADE WAR COULD BE GOOD BUYING OPPORTUNITY
I just set all my stocks to reinvest dividends. With people panicking over the trade negotiations with China, stock prices have plummeted. I think it could be a good buying opportunity. So I'm reinvesting all dividend income until the whole thing plays out. Eventually I believe China will negotiate a deal and the markets will recover.
I think this is where Trump is definitely on the right track. For far too long trade between the U.S. and China has been very one sided. It's about time the tables were turned. While many might think Trump is fighting a losing battle here, I don't think that's the case. He stated almost casually, "We can make these things here." Which is absolutely true. So while Chinese products may be cheaper, there's no reason we have to buy from them. Anything manufactured there can be manufactured in the U.S. just as well. Might cost a little more, but then again, it would also provide more jobs and boost our economy. I think he's on the right track and we'll eventually see a new trade deal with China that is much more favorable to the United States.
I think this is where Trump is definitely on the right track. For far too long trade between the U.S. and China has been very one sided. It's about time the tables were turned. While many might think Trump is fighting a losing battle here, I don't think that's the case. He stated almost casually, "We can make these things here." Which is absolutely true. So while Chinese products may be cheaper, there's no reason we have to buy from them. Anything manufactured there can be manufactured in the U.S. just as well. Might cost a little more, but then again, it would also provide more jobs and boost our economy. I think he's on the right track and we'll eventually see a new trade deal with China that is much more favorable to the United States.
Thursday, May 9, 2019
INCREASED MONTHLY DIVIDENDS BY ANOTHER 2%!
Just sold half my stake in ZTR and reinvested the money in CLM. I consider both to be about equal in risk and don't see either making stellar gains in share price. However, by trading ZTR for CLM I increased monthly dividends by over 30% on dollars invested and boosted total monthly dividend income by a little over 2%! Because neither of these two stocks tend to make any capital gains, I'll collect all dividends in cash from both. High yields but high risk as well. I'm willing to take the risk, but I wouldn't recommend it to anyone else.
Had some cash left over from the above trades, so I took advantage of the market being down to take out a stake in ABR. All together, this brings my total number of dividend payments collected per year to 498. Still less payments than before switching to Etrade, but I'm collecting a great deal more in cash per month!
Had some cash left over from the above trades, so I took advantage of the market being down to take out a stake in ABR. All together, this brings my total number of dividend payments collected per year to 498. Still less payments than before switching to Etrade, but I'm collecting a great deal more in cash per month!
Wednesday, May 8, 2019
BOOSTED MONTHLY DIVIDENDS BY 20%!
Wow, I can't believe how long it's been since my last post. I've been terribly remiss. I'll try to do better from now on. Been really busy since December, looking for ways to increase monthly cash flow from dividends.
Sold my SPLV shares for a tidy profit and reinvested the money in OXLC to triple dividend income on the same dollars invested. Also sold some shares of GAIN, in my ROTH account, to take out my initial investment and kept the remaining shares, so I'm playing with the house's money there. Whatever I make from the remaining shares is pure profit as far as I'm concerned. Also purchased shares in EVT, to add more stability to my portfolio. Today I purchased shares in AMZA with over a 21% yield to bring the total increase in monthly dividends to a little over 20% since the beginning of 2019!
I'm pretty happy with the progress I've made so far and excited about picking up some bargains while prices are down. However, with my retirement looming ever closer and health issues that may cause me to have to sign up for disability, I'll be on the lookout for ways to turbo charge my monthly dividends.
Currently I'm reinvesting all dividends in stocks that are selling for less than my original purchase price and taking cash payments on stocks selling above my original buy in. By doing so, I'm reducing the average price per share on the under performers and holding the line on stocks showing capital gains. Not exactly sure of the wisdom of this approach, but so far it's working out well for me.
I'm amazed by the ever increasing monthly dividends, whether I add new money or not. Reinvested dividend income keeps monthly cash flows growing every month. While the prices of my shares go up and down, my income from dividends just keeps increasing, regardless of whether or not some of my shares cut their dividends. If the cut is minor, I usually keep the stock. If they suspend dividends, they're sold and replaced with another dividend payer.
Sold my SPLV shares for a tidy profit and reinvested the money in OXLC to triple dividend income on the same dollars invested. Also sold some shares of GAIN, in my ROTH account, to take out my initial investment and kept the remaining shares, so I'm playing with the house's money there. Whatever I make from the remaining shares is pure profit as far as I'm concerned. Also purchased shares in EVT, to add more stability to my portfolio. Today I purchased shares in AMZA with over a 21% yield to bring the total increase in monthly dividends to a little over 20% since the beginning of 2019!
I'm pretty happy with the progress I've made so far and excited about picking up some bargains while prices are down. However, with my retirement looming ever closer and health issues that may cause me to have to sign up for disability, I'll be on the lookout for ways to turbo charge my monthly dividends.
Currently I'm reinvesting all dividends in stocks that are selling for less than my original purchase price and taking cash payments on stocks selling above my original buy in. By doing so, I'm reducing the average price per share on the under performers and holding the line on stocks showing capital gains. Not exactly sure of the wisdom of this approach, but so far it's working out well for me.
I'm amazed by the ever increasing monthly dividends, whether I add new money or not. Reinvested dividend income keeps monthly cash flows growing every month. While the prices of my shares go up and down, my income from dividends just keeps increasing, regardless of whether or not some of my shares cut their dividends. If the cut is minor, I usually keep the stock. If they suspend dividends, they're sold and replaced with another dividend payer.
Tuesday, December 18, 2018
BOOSTED MONTHLY DIVIDENDS BY OVER 6%!
It's nearing Christmas and I haven't done any shopping yet. But I have the next couple of days off, so I'll get it all done then. In the mean time, I put some of my Christmas bonus to work, investing equal amounts in AGNC and NRZ for a boost to monthly dividend income of a little over 6%! Dividends from the new shares purchased will kick in in January 2019, which I figure is a great way to start off the new year.
Yesterday's big drop in the stock market has a lot of people running to cash. Quite understandable, especially since 2008. However, I have no intention of abandoning my dividend investment strategy. I'm looking at the situation as an opportunity to buy more dividend income at a lower price. What the market does tomorrow or next week or next year is really anybody's guess. But if you're collecting a nice stream of dividend income every month, it becomes almost irrelevant since you're not likely to be selling your shares.
Currently, I'm showing a loss on most of my investments. That may continue for quite some time. But I'm not panicking as long as they continue to pay dividends. I have to admit it's tempting to take all the dividends in cash, just to be on the safe side. However, I think it's better to reinvest the dividends at the new lower prices and reduce my average price per share while I have the chance. I'd feel pretty stupid about building up a big chunk of cash and then the market takes off again and I'd have lost out on the chance to pick up some bargains. So I'll keep reinvesting dividends until I actually need the cash.
Yesterday's big drop in the stock market has a lot of people running to cash. Quite understandable, especially since 2008. However, I have no intention of abandoning my dividend investment strategy. I'm looking at the situation as an opportunity to buy more dividend income at a lower price. What the market does tomorrow or next week or next year is really anybody's guess. But if you're collecting a nice stream of dividend income every month, it becomes almost irrelevant since you're not likely to be selling your shares.
Currently, I'm showing a loss on most of my investments. That may continue for quite some time. But I'm not panicking as long as they continue to pay dividends. I have to admit it's tempting to take all the dividends in cash, just to be on the safe side. However, I think it's better to reinvest the dividends at the new lower prices and reduce my average price per share while I have the chance. I'd feel pretty stupid about building up a big chunk of cash and then the market takes off again and I'd have lost out on the chance to pick up some bargains. So I'll keep reinvesting dividends until I actually need the cash.
Tuesday, December 4, 2018
KICKED OFF DECEMBER WITH 5 GREAT DIVIDEND PAYMENTS!
Now that the transfer from Capital One to Etrade is complete, it's time to get busy building monthly dividend income again. I'm happy to report, I collected 5 great dividend payments for the first of December, reinvesting 4 to buy more shares and taking the remaining payment in cash.
I've taken a new approach to reinvesting dividends since switching to Etrade. If the stock is more than what I paid for it, I take the dividend in cash and if it's selling for less than I paid, I reinvest the dividend. My goal is to reduce the average price per share on the stocks that are down in price by reinvesting dividends at the lower price. This will put me in a better position to benefit from a recovery in share price on these stocks. As for taking cash payments from stocks that have gained in price, it may seem like it would be better to buy more shares of something that's doing good. However, my thinking here is, I don't see any of them doing well enough going forward to justify raising my average price per share by reinvesting dividend payments. So instead I'll take the cash and use that where I see more opportunity.
I'm still wanting to purchase a larger stake in AGNC. I like their monthly dividends and the high yield, but I mostly like their numbers which lead me to believe they can continue paying the dividends. So I'm wanting to build up a large stake in my Roth account to add to monthly cash flow. I do own shares in all three of my investment accounts now and plan on keeping them for the long haul.
I've taken a new approach to reinvesting dividends since switching to Etrade. If the stock is more than what I paid for it, I take the dividend in cash and if it's selling for less than I paid, I reinvest the dividend. My goal is to reduce the average price per share on the stocks that are down in price by reinvesting dividends at the lower price. This will put me in a better position to benefit from a recovery in share price on these stocks. As for taking cash payments from stocks that have gained in price, it may seem like it would be better to buy more shares of something that's doing good. However, my thinking here is, I don't see any of them doing well enough going forward to justify raising my average price per share by reinvesting dividend payments. So instead I'll take the cash and use that where I see more opportunity.
I'm still wanting to purchase a larger stake in AGNC. I like their monthly dividends and the high yield, but I mostly like their numbers which lead me to believe they can continue paying the dividends. So I'm wanting to build up a large stake in my Roth account to add to monthly cash flow. I do own shares in all three of my investment accounts now and plan on keeping them for the long haul.
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