- Joined
- Jan 21, 2010
- Messages
- 8,735
- Reaction score
- 148
I'm more / less the same. I don't really have the time more so than patience to monitor the market on a day by day basis to be willing to day trade or actively trade. My goal is to never sell any of my assets, so to me, just getting in at good yields is what I'm after, so I've been buying into this market. I'm content with a ~ 3% spread between my cost to borrow and the dividend yield on my asset purchases, and hoping for share appreciation as gravy. I've hit a pretty solid amount of dividends in 2018, well above the average annual income people have even after my borrowing cost, for what that's worth.
I think there might be some more rough days in the market ahead, that I would continuously buy into to be honest. It's funny that given my objectives, I'm usually happy when prices tank. But really that's a lessen for wider investors... retail investors tend to buy in times of exuberance and sell at times of panic which truly is not a good formula. When you don't need the money, it's much easier to avoid falling into that trap.
I'm good with some downturns. I just reinvest the dividends at a lower cost, which means when it bounces back I'm set.
My goal is 10% total div growth per year, and by that I mean dividend raises overall + dividends yield. For now I'm about 12.3%, and I'm really happy with that. If I can keep the total growth number up, I'm happy because I'm only 37 and will have this for awhile.
Buyupside.com has a div reinvestment calculator, which is cool. https://www.buyupside.com/calculators/dividendreinvestmentdec07.htm Based on that calculator, if I leave my current investments alone, with my current yield and growth, and assume only 5% share price growth per year, I'll have $3.2M in 30 years. Of course, there's variables affecting that over time, but that's if I don't add any more funds, which is pretty cool. I just buy high quality dividend growers and let them ride.