Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend Growth Investing and chit chat. -- Ignore unavailable to you. Want to Upgrade?

To: rnsmth who wrote (1709)	12/13/2021 12:11:37 AM
From: chowder	6 Recommendations Recommended By Cogito Ergo Sum luvdividends MinionMom&MarineWife oabtpgn red cardinal and 1 more member Read Replies (1) \| Respond to of 2146

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?

To: rnsmth who wrote (1709)	12/13/2021 5:33:06 AM
From: cemanuel	7 Recommendations Recommended By dan1944 ddbpaso luvdividends MinionMom&MarineWife oabtpgn and 2 more members Read Replies (1) \| Respond to of 2146

Re: Groupthink My modus operandi (terrible Latin, should be operandus/singular but we've bastardized the language) is to read what folks have to say as an idea generator. This can be for specific stocks to look at. I use my screen but quite often someone will mention a company and I'll stick the symbol in to run in my next one. But it can also be for investment strategies and methods. Chowder is a great example - sorry man but you provide so much and such great info. I am sure if he cared that he'd think I'm too strict on valuations when buying dividend-payers. This may be true but it helps my discipline - most of my "rules" are not return but discipline rules. But his beat/raise tactic for adding shares, or even starting a position, may work very well in my IRA where total return is the goal. To me, what others say is a lot like yield. I do chase yield - I have spent the last 2.5 years trying to buy companies yielding over 2% with a strong preference for those yielding 3% to reach my dividend income dollar figure (I failed). But my stock picking doesn't end with yield - there's a whole pile of other information related to debt, cash flows, etc., that determines if the stock is right for me. The same holds for stocks, investing methods or tools like SSD. Thanks everyone for all the ideas - they do matter and I look at them - but I'm going to apply my own investigation from there and figure out if it's is right for me. I suspect the same is true for most of us. Finally, it is absolutely impossible for me to crawl inside someone's head and understand things like risk tolerance. This makes it unwise for me to directly copy/duplicate what someone else does. But all tips/advice/information are welcome (if phrased politely).