Are you investing like you’re shopping at Walmart? Everyone loves a sale, right? But when it comes to stocks, what’s never surprising to me is how investors run for the hills when prices fall. A few months ago they may have been snapping up shares at full price, but as soon as the rollbacks come, they’re scared to buy even good companies. My hope for you, my valued reader, is to not focus on prices but to focus on income. Prices come and go. Income is forever. I want you to be a compounding machine.
Look at the technology sector. Nasdaq is worth ¾ of what it was at the beginning of the year and basically pays a pittance of a dividend. You can have it.
My focus is on compounding. My concern is, does a particular stock pay a healthy dividend? How healthy is the company? How long has it been paying a dividend? Does it have a solid track record or not? And for how many consecutive years has the dividend been increased? There can be some gold at the end of this rainbow.
Action Line: Prices are a hope and a prayer. Focus on being paid to be invested in this market. Focus on dividends and reinvest them at lower prices like you’re a Walmart shopper. If you need help focusing your portfolio on dividends, let’s talk.
E.J. Smith - Your Survival Guy
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