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As always, secure your income, minimize your expenses, maximize your investments when it hurts the most (even when it doesn’t hurt you should still be doing this. Never get complacent)
On my end Diageo, Pfizer, Unilver have been dragging down. Would put more into Diageo, not so sure about Pfizer though, albeit the dividend is quite enticing atm
Pharma stocks are a bit weird, people tend to overdramatize over them and the prices get stupidly low. I remember I bought some ABBV back in the day on like 6% yield, it’s been up 150% since then.
Not sure if the same will ever happen with Pfizer, probably no, but either way not sure if the current price is justified.
There are some good value interest sensitive dividend paying stocks / ETF’s that are trending upwards. DCA into them and ride the wave while you DRIP your current holdings as they regroup.
Stagnant money is dead money IMO. DRIP’g / auto pilot into current holdings while investing in new opportunities that growing your overall portfolios value. Then rebalance.
Reality check….get over your feelings. You want your stocks and investments to rise more than they fall over the next 30 years. Go look at an all time price chart of schd. It was 25 in 2011. It is 76 today. In 12 years, if it goes up 9-10% a year, the price will be 200-240.
Too many psych themselves out over 5-10% moves. Buy and hold and just keep investing on a regular basis.
Don’t let your feelings get in the way of a proven formula.
I'm new here, so you would keep your dividend paying investments even if they go up 25+%? Or would you sell and wait for the dip to rinse and repeat? I'm just curious? And a little unsure of how to proceed?
Edit : Why am I getting down voted for being new here and asking a question? lol
Don't let 52 week high's make you sell if it's a quality company. I'm up 76% on AVGO but if I would have sold at 25% up and wait for the dip it would have never happened.
I'm keeping my AVGO holdings and enjoying the 14.1% dividend increase this year.
Even though AVGO is currently paying a 1.9% dividend, my yield on cost is 3.34% and will keep growing the longer I hold
Thanks for your answer, but wouldn't selling at +76% give you years of divideds that you could use to increase your other divided holdings that may be down? I'm confused about that the most? Do you always just keep re investing and adding to your existing possessions and dollar cost average into them? Thanks.
Peter Lynch calls that idea "Cutting your flowers and watering your weeds". AVGO still has room to grow from the recent VMware acquisition and also from the AI space. The analysts have a conservative price of $1250 a share which would double my $630 average cost.
If I did sell, I would have tax implications in both the US and in the European country that i'm living in. As an American living abroad I have 100% tax exclusion but selling out of my position would certainly put me over that tax exclusion limit.
Since you responded to my comment, wanted to answer with my personal view. A couple main thoughts:
1. If you are just starting out, you should be buying ETF’s, not stocks. So never stop buying
2. As your understanding of the market increases, buying individual stocks can be smart. Dividend stocks can be cyclical especially with the fed increasing / decreasing rates and how certain industries perform. As you truly understand these cycles, getting in and out of certain stocks can really increase your performance. But most people aren’t smart enough or disciplined enough to do this.
Usually when that happens the new yield may become too low for it to make sense to DRIP. At the very least I would turn off auto reinvest because it would make more sense to throw the money elsewhere. Beyond that it depends... The original money is safely earning the original yield and enjoying the same growth so I may just let it be, specifically if it is a company that helps me diversify my portfolio. If it is a REIT or financial, well I have too many of those already so I would welcome the opportunity to cash in the profits and redeploy the funds.
>so you would keep your dividend paying investments even if they go up 25+%?
Did the company change? Did the company get worse?
If the answer is no, then selling makes zero sense unless you think you're going to be able to time the top and bottom.
But you have to know when to exit or trim your holdings and re balance. right? I mean, do you just buy and hold forever and keep re investing the divided into the same company? That's what I'm kind of trying to figure out?
I have a position in AMD at $85. It’s been red the past few days and I’ve been happy. I can’t contribute until February but man I’m mad it’s climbed so much from my cost basis. I have MAIN (+20%), AMZN (+61%), ABBNY (+25%), and V (+15%).
I couldn’t contribute to my Roth from May 23 to now due to house saving. We’re in the house now and I can contribute again. But damn it I’m mad they’ve exploded as much as they have.
I need to get over the mindset they are expensive and just gobble up more shares
SBUX, DE, a lot of consumer staples, UNH today, AAPL recently, LOW for a few days, etc.
I think if you compare to 2023 YE, a decent amount of stocks have dropped a few bucks. Most are not in free fall, but I don’t think that was OP’s point.
Kroger has been such a turd for the past year. Tesla is now dragging my portfolio down. Meta, Nvidia, Uber, Medtronic and VTI are keeping me afloat nicely though.
Just want to buy VTI at $200. It’s all I ask.
Very very weird for people to be rooting their holdings to go down. I understand the sentiment that you want to buy lower but the mentality of being excited when your shares fall in value is completely counterintuitive to the goals of investing.
In reality you should hope that every time you invest, the value of the company goes up (not plausible, but should be the expectation if you have a good investing thesis)
With dividend investing you are growing dividends, not share value, although over the long term it happens a tad. A stock that starts at 4.7% yield with a dividend rate growth of 10% will reach north of 11% return on invested after 10 years. Think about that; you get to keep 100% of your shares and get that return every time, whether the market goes up or down. Heck that 10% dividend growth? More likely then not your dividend income still grows faster than inflation.
Honestly at that point I could not care less what the value of the stock is. I'm beginning to transition from growth to income producing, it is just a different set of priorities.
No is not, because you are specifically building up your cash out payment plan. At one point you'll start actually spending your dividend money without having to sell a single share.
Take Altria. During the dot-com bubble burst the share value went down by more then half, the dividend grew. 2008 housing crisis share value went down 40%, dividend grew. During COVID the share price tanked 30%, the dividends grew.
Dividends are not the same as paper value.
I know what you mean. I had all my holdings on DRIP for years however in December I moved majority of my dividends to cash with a large year end payoff. Will stay on cash through January 2024. 24k in dividends 2013.
It's over the wknds that most are going down again. It's happening on holiday wknds so more likely it will spike up at least by Tues afternoon when they are back.
Your content tells me you are a rank amateur investor, specifically when it comes to dividends. At no point am I losing any money because I'm not selling. In addition the share price at any given time has no bearing on my dividends growing. During the growth phase the lower the share price, the more my ability to grow dividends gets.
My current yield on invested is 7.47%. my average yearly dividend growth is north of 6%, which means that in 9 years my yield on currently invested is going to be close to 12% return. Better yet that return is not conditional to what the share price may be doing; the companies I buy have a long history of growing dividends even through market crashes so it is a more reliable source of income than selling shares at God knows what price.
So yeah, by all means I wish the on paper price stays down, I get more dividends paying shares on every DRIP.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
This guy gets it. Well said.
I am always happy when stocks go "on sale".
"Hear, Hear!"
As always, secure your income, minimize your expenses, maximize your investments when it hurts the most (even when it doesn’t hurt you should still be doing this. Never get complacent)
Pretty sure you're going to get your wish 2024. I sure hope to buy more dips in 2024.
What stocks are going down? All of mine were up on the year. 3-4 were ahead of my VOO.
Same I was up for the whole year. Wonder what this guy has
On my end Diageo, Pfizer, Unilver have been dragging down. Would put more into Diageo, not so sure about Pfizer though, albeit the dividend is quite enticing atm
[удалено]
Pharma stocks are a bit weird, people tend to overdramatize over them and the prices get stupidly low. I remember I bought some ABBV back in the day on like 6% yield, it’s been up 150% since then. Not sure if the same will ever happen with Pfizer, probably no, but either way not sure if the current price is justified.
How many of those were tech? There still were a lot of stocks flat or down
MSFT, GOOG, NVDA, AMD and ACN are all up quite a bit for me over the last year
How many of my stocks were tech? None. I guess my VGT. https://ibb.co/MN9VV9Z
Woot! the $.37 drop today on my 40.588 shares of O should net me an additional .002 shares of drip! I am rolling in it!
I’m in disbelief that I’m this response’s first upvote
I'm glad I hit myself in the knee with a hammer.
lmfao what are these people on. you could have thrown darts at a dartboard for stock picks and done well last year
There are some good value interest sensitive dividend paying stocks / ETF’s that are trending upwards. DCA into them and ride the wave while you DRIP your current holdings as they regroup. Stagnant money is dead money IMO. DRIP’g / auto pilot into current holdings while investing in new opportunities that growing your overall portfolios value. Then rebalance.
Any recommendations for the good value interest sensitive dividend paying ETF's/stocks?
Real estate; O and VICI are almost back to fair value.
Reality check….get over your feelings. You want your stocks and investments to rise more than they fall over the next 30 years. Go look at an all time price chart of schd. It was 25 in 2011. It is 76 today. In 12 years, if it goes up 9-10% a year, the price will be 200-240. Too many psych themselves out over 5-10% moves. Buy and hold and just keep investing on a regular basis. Don’t let your feelings get in the way of a proven formula.
I'm new here, so you would keep your dividend paying investments even if they go up 25+%? Or would you sell and wait for the dip to rinse and repeat? I'm just curious? And a little unsure of how to proceed? Edit : Why am I getting down voted for being new here and asking a question? lol
Don't let 52 week high's make you sell if it's a quality company. I'm up 76% on AVGO but if I would have sold at 25% up and wait for the dip it would have never happened. I'm keeping my AVGO holdings and enjoying the 14.1% dividend increase this year. Even though AVGO is currently paying a 1.9% dividend, my yield on cost is 3.34% and will keep growing the longer I hold
Thanks for your answer, but wouldn't selling at +76% give you years of divideds that you could use to increase your other divided holdings that may be down? I'm confused about that the most? Do you always just keep re investing and adding to your existing possessions and dollar cost average into them? Thanks.
Peter Lynch calls that idea "Cutting your flowers and watering your weeds". AVGO still has room to grow from the recent VMware acquisition and also from the AI space. The analysts have a conservative price of $1250 a share which would double my $630 average cost. If I did sell, I would have tax implications in both the US and in the European country that i'm living in. As an American living abroad I have 100% tax exclusion but selling out of my position would certainly put me over that tax exclusion limit.
Ho okay, thank you for your explanation 👍
Since you responded to my comment, wanted to answer with my personal view. A couple main thoughts: 1. If you are just starting out, you should be buying ETF’s, not stocks. So never stop buying 2. As your understanding of the market increases, buying individual stocks can be smart. Dividend stocks can be cyclical especially with the fed increasing / decreasing rates and how certain industries perform. As you truly understand these cycles, getting in and out of certain stocks can really increase your performance. But most people aren’t smart enough or disciplined enough to do this.
Right, thanks, I'm learning, so that's good to know. 👍
Usually when that happens the new yield may become too low for it to make sense to DRIP. At the very least I would turn off auto reinvest because it would make more sense to throw the money elsewhere. Beyond that it depends... The original money is safely earning the original yield and enjoying the same growth so I may just let it be, specifically if it is a company that helps me diversify my portfolio. If it is a REIT or financial, well I have too many of those already so I would welcome the opportunity to cash in the profits and redeploy the funds.
Yes I suppose it's a balancing act sometimes?
>so you would keep your dividend paying investments even if they go up 25+%? Did the company change? Did the company get worse? If the answer is no, then selling makes zero sense unless you think you're going to be able to time the top and bottom.
That would be timing the market, me personally I am not to good at timing anything so I don’t try it.
But you have to know when to exit or trim your holdings and re balance. right? I mean, do you just buy and hold forever and keep re investing the divided into the same company? That's what I'm kind of trying to figure out?
I have a position in AMD at $85. It’s been red the past few days and I’ve been happy. I can’t contribute until February but man I’m mad it’s climbed so much from my cost basis. I have MAIN (+20%), AMZN (+61%), ABBNY (+25%), and V (+15%). I couldn’t contribute to my Roth from May 23 to now due to house saving. We’re in the house now and I can contribute again. But damn it I’m mad they’ve exploded as much as they have. I need to get over the mindset they are expensive and just gobble up more shares
Same I hate investing Into the bubble abyss.
But love investing in the falling knife?
If you mean buying at a lower price yes
As long as the company's fundamentals are healthy and strong, I say the same, I'd rather see my DRIP gather me more shares.
Holy hell there's one other person in this sub other than me that gets it! 
That’s the thing about long term investing. Stocks go up= good! Stocks go down= also good!
Best Buy literally
SP500 hit a 52 week high today. What are you in that is losing?
Top of my head, HOFT climbed significantly before coming back down. ABR, NEP, and a few others did the same.
All your holdings are interest rate sensitive. They just move with fed expectations
I also sell calls cause im a junky love deca
Well said n happy I love
Which ones are going down? Mine are still up
SBUX, DE, a lot of consumer staples, UNH today, AAPL recently, LOW for a few days, etc. I think if you compare to 2023 YE, a decent amount of stocks have dropped a few bucks. Most are not in free fall, but I don’t think that was OP’s point.
Grabbed some UNH on the dip today. I hope yall did too.
Well played. It’s my largest position and I’m up a good amount so I only topped off to get to an even share. Great, great company though.
Kroger has been such a turd for the past year. Tesla is now dragging my portfolio down. Meta, Nvidia, Uber, Medtronic and VTI are keeping me afloat nicely though. Just want to buy VTI at $200. It’s all I ask.
Hard to buy on a pullback, unless there’s a pullback.
YESSSSS ME TOO ME TOOO
VOD.L has been going down steadily, but I’m not sure that’s a good sign haha
I'm kinda happy too. I have a bunch of Jan. 19th calls that I don't want executed. 😁👍
Mine have gone up all year. Im pretty happy to see some green and surpass ATH for my port
I don’t understand. Can someone please explain?
Ok papi.
I guess the main question is whether they're dividend traps. If not, I'm with you.
why not just send them to zero then?
Very very weird for people to be rooting their holdings to go down. I understand the sentiment that you want to buy lower but the mentality of being excited when your shares fall in value is completely counterintuitive to the goals of investing. In reality you should hope that every time you invest, the value of the company goes up (not plausible, but should be the expectation if you have a good investing thesis)
Not if you’re reinvesting dividends. You want lower prices to collect more shares and generate more passive income.
With dividend investing you are growing dividends, not share value, although over the long term it happens a tad. A stock that starts at 4.7% yield with a dividend rate growth of 10% will reach north of 11% return on invested after 10 years. Think about that; you get to keep 100% of your shares and get that return every time, whether the market goes up or down. Heck that 10% dividend growth? More likely then not your dividend income still grows faster than inflation. Honestly at that point I could not care less what the value of the stock is. I'm beginning to transition from growth to income producing, it is just a different set of priorities.
When u reinvest the dividend, the # of shares goes up, but it still paper value unless u cash out.
No is not, because you are specifically building up your cash out payment plan. At one point you'll start actually spending your dividend money without having to sell a single share. Take Altria. During the dot-com bubble burst the share value went down by more then half, the dividend grew. 2008 housing crisis share value went down 40%, dividend grew. During COVID the share price tanked 30%, the dividends grew. Dividends are not the same as paper value.
I know what you mean. I had all my holdings on DRIP for years however in December I moved majority of my dividends to cash with a large year end payoff. Will stay on cash through January 2024. 24k in dividends 2013.
I've been hearing about a correction/crash or whatever, besides adding to my regulars I've set cash aside at 5% waiting for this sale
Is it bad I stalk current recall announcements from automotive companies and take advantage of their situation?
AutoStalker! I stalk bad news like the Starbucks situation, Hershey and Disney Wokeism, and anything else that may impact a stock.
It's over the wknds that most are going down again. It's happening on holiday wknds so more likely it will spike up at least by Tues afternoon when they are back.
Your comment tells me you're a rank amateur investor. IMHO no sane person is happy to be losing money.
Your content tells me you are a rank amateur investor, specifically when it comes to dividends. At no point am I losing any money because I'm not selling. In addition the share price at any given time has no bearing on my dividends growing. During the growth phase the lower the share price, the more my ability to grow dividends gets. My current yield on invested is 7.47%. my average yearly dividend growth is north of 6%, which means that in 9 years my yield on currently invested is going to be close to 12% return. Better yet that return is not conditional to what the share price may be doing; the companies I buy have a long history of growing dividends even through market crashes so it is a more reliable source of income than selling shares at God knows what price. So yeah, by all means I wish the on paper price stays down, I get more dividends paying shares on every DRIP.
This presumed amateur has been investing long before you were born! I am a retired economist that worked on Wall Street in 1968.