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

To: JimisJim who wrote (3946)	2/27/2010 11:32:18 PM
From: Steve Felix	Respond to of 34328

When I had a cash infusion to my IRA last year, I just didn't dump it in the market the day after I got it. At least that isn't what I meant by saying I have very little cash. I was selective and tried to time it right. Once invested though, I don't try and time the market by continually raising and deploying cash. My main goal is to have the estimated annual dividend income on each monthly statement be higher than the last. Currently I don't treat my taxable account quite the same, but will by the time the wife retires in November.

To: JimisJim who wrote (3946)	2/28/2010 7:52:54 AM
From: chowder	1 Recommendation Read Replies (1) \| Respond to of 34328

Jim, I understand the concern. I really do. It was one of my concerns as well when I decided to change from swing trading to dividend investing. It isn't something I took lightly. What makes dividend investing so effective though, is if one continues to add cash on regular intervals and reinvests the dividends. If one is going to continue to fund the portfolio and reinvest the dividend, then I welcome two more significant tumbles this year. What isn't going to tumble are the increasing dividends. I'm with Steve on this one! As long as the income continues to grow, I'm not sweating the short term market moves, nor the intermediate ones either. I understand the desire to try and get a good entry price. What I learned from several years of swing trading though is that it is very difficult to determine what a good entry price is. It isn't always a cheap price. There is a difference between price and value. My best performers were stocks I purchased at 52 week highs. I provided many examples of this in real time on the Strictly Buy And Sell Set Up thread. Short to intermediate term buys do need a good entry price though and it's difficult to ignore what one is accustomed to. Nothing wrong with a good entry on a long term position either, but that's why I started on this route in late 2008. Prices were already low and got lower into March of 2009 before exploding higher. The positions I'm taking now and in the near future are adding to existing positions, not taking out new positions. I have the desired number of holdings I set out to achieve. Now I'll continue to build on them unless something changes fundamentally within any of my holdings. One of the CEF's I own is EXG. I think it had a 15% yield. I don't have access to that information at the moment, but they cut the dividend a couple of months ago and the NAV took a big hit. Normally I would drop that puppy in a heart beat, but ... the yield dropped to I think ... 12%. So I held. I'm actually in the red if I were to look for capital gains, but the position is positive for me because of the distributions I have received and continue to receive. I decided to hold a bad news 12% yielder not knowing where I could do any better. That's an exception though. Let a 3% yielder lower the dividend, and I'm gone. Then ... as the barber says ... NEXT!