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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: JimisJim who wrote (3595)2/1/2010 11:57:41 PM
From: Grommit  Read Replies (1) | Respond to of 34328
 
"What's your approach/methodology to buying/investing in dividend stocks? What do you look for?"

it varies. nowadays i look for yield and safety. go back and look at my posts on this thread in january. as i wrote in one of them:

"When I look for a dividend investment, I first look for a low PE among whatever group I am searching. If I want a utility, I look at them all and look for the highest dividend among those with low PEs. If I want a reit, I look at all the residential reits, for example. Select ONLY those with low PEs. Then look for a high dividend yield, low debt, and all the other factors worth considering. I want high dividend yield, decent dividend growth, and undervalued or fairly valued stock price. "


"And do you time your entries and exits? If so, based on divvy dates, TA or something else?"
no.

Learn here. this is a truly great thread. Paul's Value Thread:
Subject 10036

............

During the crisis I moved into pref shares in a big way. Presently my portfolio is over 50% pref shares and 25% reits. But very safe reit common stocks -- low debt, things under control, insiders not selling too much, no accounting BS, etc.... See CLP for example.
finance.yahoo.com

I select all stocks (INCLUDING dividend stocks) based on value and safety. I do not want any stock to go down in value. I do not want to look back at a 20% drop and say "yep, I should have known. It had a PE of 22 when I bought it." Even if you live off dividends and "do not care" about portfolio value, such a drop is a real loss of wealth, IMO.

good luck
grommit

I think that most pref shares are fairly valued now, but the yield isn't bad. Here's some VERY nice pref shares:

BDN D 8.2%
LXP D 9.7%
CLP D 8.7%
HRP C 8.6%

finance.yahoo.com