What will a big drop in the DOW mean to dividend investors? Well that would depend on why you are investing in the first place. Let me explain a little. The stock market can be a lot like gambling or a lot like a free money machine. It all comes down to how you approach your investing. If you are looking for some big returns fast and you don't have a good solid plan. Then, sometimes you may win and some times you are going to loose.
Why is it that I like my dividend capturing strategy to avoid what would seem to be a gambling scenario? First off let's just stick to good quality companies. As of today, there are over 3400 companies paying out dividends every year. Every day, every week and every month.... there is always some company, somewhere getting ready to share some profits with their shareholders. How do you choose a company that is going to be right for you and your goals? My suggestion... and it's just a suggestion, is to stick with the proven winners. The Dividend Kings, The Dividend Aristocrats and The Dividend Champions, just to name a few hundred stocks.
The Dividend King have been increasing their payouts to investors for a minimum of 50 years. Every year forking out higher and higher dividends. That's right... to make it onto this prestigious list. The dividend company has to consistently increase its payouts (50 years min, just to make the list). The Dividend Aristocrats and The Dividend Champions both require dividend increases for a minimum of 25 years.
The yields some of these companies payout is much higher the any bank offered CD at the moment. The yield is going to fluctuate just as the stock price moves up and down, however the dividend payments increase every year (price fluctuations will effect your ROI). With the dividends increasing every year this is what attracts many investors, regardless of Wall Street or the stock markets' condition. With plenty of investors chasing the dividends of these companies. That is what drives the price action of these stocks... and that is what it is we are looking for. Consistent price change directly related to the dividend date. That is what makes my approach to Dividend Capturing different and effective.
When is the best time to buy a dividend stock? To be quite honest and frank about this question, the answer is going to be a bit childish... The best time to buy a dividend stock would really depend on your investment goals... why are you buying in the first place? Silly , yes... but buying dividend stocks always comes back to WHY. Why are you investing in the first place, What are your investment goals and objectives?
To make things a little easier, I'm going to talk about why I'm investing.
Monthly Cash Flow... point blank! That's it! At least for me, that's the answer. I want to retire and not have to think to much about where my bill money is going to be coming from. I want monthly cash flow, and investing in a safe and easy to understand way without risking my nest egg.
So the question about when is the best time to buy a dividend stock is... Everyday. Yes every day there is another dividend stock company getting ready to pay dividends to their shareholders. Dividends are my way of receiving 20-30 dividend checks per month for monthly cash flow. This strategy is called "Dividend Capturing". It's pretty easy to be a qualified shareholder and collect plenty divi checks. Buy the stock before the Ex-date. One day, 10 days, 30 days... it doesn't really matter when you buy a stock to qualify to get a dividend check. As long as you own the stock on or before "The Date Of Record", you qualify to receive a dividend check.
There are plenty of places online to find a dividend stocks list and when they are paying dividends but what is not so easy is finding out is, which dividend stock is the best one to own if the stock prices go down. Don't fool yourself into thinking the stocks you buy will not go down in value after you buy it. They all go up and down every day and buying the right one at the right time becomes easier and less risky if you have some Dividend Stock Software that is specifically designed to sift through mountains of data just to find the dividend stock that is just right. Come join us at the The10minutetrader.com and get a weekly list from our software that picks out the dividend stock companies that score the highest using this strategy and then maybe, you too can receive plenty dividend checks every month.
Just out of high school I decided to be self employed, after running a successful manufacturing business I had a problem of making more money than I knew what to do with. I started investing, after 23 years of investing I now want to share my strategy with a select few that want an extra edge in their own investing.