I own 37 dividend stocks in my stock portfolio. On any given month, I’m almost always averaging in (buying more shares). How do I know which stock(s) to buy at a given time? How do I invest my hard earned capital in dividend stocks, while looking at things both logically and emotionally? Today’s video shares my very strategy.
Before even starting, it’s important to recognize whether one is looking at a net new portfolio or an established one. While most of today’s video covers the strategy of how I buy stocks for my established dividend portfolio, I also discuss how things would differ for a newer portfolio.
Next, I dive into my personal pillars for success.
Pillar 1: I enjoy setting strategic buy order themes each year. Each January I pick a few stocks that I’ll focus on accumulating any given year. This year, it’s Procter & Gamble and Kimberly Clark. My analysis is based on fundamentals. By setting the theme early in the year, I stay focused and determined.
Pillar 2: When I invest in a new position to my established stock portfolio, I go “all in”. Meaning: I will start with a small lump sum investment, and then I keep averaging in until my position reaches its desired size (and, at a minimum, my “full size” for a small position). I believe in good housekeeping and dislike 1-off positions in my portfolio.
Pillar 3: I’m always looking out for great investment opportunities. Since I own 37 stocks, several of them are always on sale at any given time. While I like to first focus on pillars 1 and 2, I will buy “on sale” stocks as well, when opportunities present themselves.
Pillar 4: Certain of my stocks fall into trading ranges, more or less. I like to place a small amount of capital in them, each time they hit the bottom of the trading range.
At the end of the day, this strategic framework keeps my investing vey logical and pragmatic. It keeps me focused on doing the right things, avoiding all the noise out there. It also, however, leaves some room for emotion which I think is actually important for dividend growth investors.
As mentioned in today’s video, I have quite a few related videos to share with all of you! Following is my long list of related investing videos that you may want to check out.
First, let’s jump into videos that discuss hypothetical scenarios of starting all over again. Following are the ways I would start, if I were hypothetically starting over with different amounts of money!
Investing My First $1,000:
Investing My First $5,000:
Investing My First $10,000:
Investing My First $25,000:
Investing My First: $50,000:
Also mentioned in today’s video, here’s some info on my personal stock portfolio, on my small, medium, and large/core strategy. Learn about my personal asset allocation:
Each year, I like to set strategic themes for my buy orders (pillar 1 of my strategy). This year, my strategic theme spans Procter & Gamble and Kimberly-Clark. Learn all about my dividend investing strategic themes for 2018:
While I don’t buy many net new stock positions these days, when I do I’m all in. (In the sense that I will keep buying and averaging in until the position reaches full size.) Here’s a stock I just started buying, General Mills (pillar 2 of my strategy):
While I mainly focus on pillars 1 and 2 of my buy order strategy, I just can’t pass up a good opportunity. I also like to make incremental buy orders of dividend portfolio stocks that are “on sale”. This year, I’m buying some Southern Corporation:
And, Realty Income:
Last, I want to share my recent analysis of Coca-Cola. While I own this stock in my portfolio (and it’s a core position), I won’t be buying more this year. It’s just not “on sale” right now, and it doesn’t fit my strategic pillars. That said, if I were hypothetically starting all over again with a net new portfolio, perhaps things would be different:
Disclosure: I am long Procter & Gamble (PG), Kimberly-Clark (KMB), General Mills (GIS), Southern Company (SO), Realty Income (O), and Coca-Cola (KO). I own these stocks in my portfolio.
Disclaimer: I’m not a licensed investment advisor, and today’s video is just for entertainment and fun. This video is NOT investment advice. Also, I’m not a tax advisor and today’s video is NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions.
All content on my YouTube channel is (c) Copyright IJL Productions LLC.