When people have similar goals then they most certainly would make some of the same decisions on what to own and how to manage it. Some might call it group think I would call it having like minds.
Mention selling JNJ in a group of dividend growth investors and it's like committing a mortal sin. Why sell JNJ with its strong balance sheet, strong position in the healthcare field, long history of paying and raising the dividend, and probably one of the safest dividends out there?
I say it depends on what it is you are trying to achieve.
I know in your case Ron you are focused more on the dividend safety scores and a reliable and increasing dividend stream. I was of the same mind as well. So if we share the same objective, we're bound to come to the same conclusion. That's not group think in my opinion.
I'm not relying on the dividend safety scores, I'm relying on my ability to adjust to market conditions. With that said, now that I have a wide margin of income safety, I don't share the same goal anymore thus from my perspective, with JNJ having a 2.56% yield, 5% dividend growth, and having underperformed the market for a decade, I think with a combination of moves I can increase the yield, increase the dividend growth, but now also get more capital appreciation potential. The goal has changed so the conclusion has changed.
If others say that's something I can do too, and they do it, does that make it group think? |
