Third quarter 2012 is now in the history books I just updated my progress page with the latest figures. In total my dividend portfolio paid out $979.25 with was about $65 more than the previous quarter. In my view the market is not offering the same value it has in the past which has lead me to keep a pile of cash ready for corrections. Unfortunately this strategy has not worked very well, the market keeps on going up. I thought DOW 13,000 was too high. Now its 13,600 and climbing. Timing the market is easier said than done.
Seeing everything in the green feels good but it can also make us over confident. I have to remind myself that price gains are only on paper while dividends are real cash hitting my account every month. That's why I don't really care what the value of my portfolio is. The only thing that matters to me is the amount of dividends I receive, if those dividends are sustainable, and if those dividends are likely to increase in the future at a rate greater than inflation. Of course I want to obtain the best yield for my money which is why I follow markets and stock prices in the first place.
2012 has been a crappy year for putting new money to work. I'd much rather have another 2011 even with the crazy volatility. I do expect the stock market will rise over time, it's just annoying when it actually happens. o.O
Impressive. Your quarterly income keeps rising each and every time. You have to like that trend. Even if you have no increase in Q4 you are looking at 3600+ in dividends for 2012. Not a bad chunk of change there!
ReplyDeleteYeah so far the plan is working as intended. I already know Q4 will be over $1000 from recent purchases which haven't paid out yet and dividend increases from MCD, ITW, etc.
DeleteI hear you, 2012 has been a pretty dismal year for value hunting, especially when comparing to 2011. Although I didn't start dividend investing until this year, I still remember tuning in to the markets last October and November and seeing the stock prices of so many companies dropping like mad.
ReplyDeleteNevertheless, even in the current hot market, there are still some nice bargains out there. I think we probably have to search a little harder, but a few have turned up of late, such as NSC. INTC still looks pretty cheap right now.
I think the key is to remain patient, just as you are doing. There will be another market downturn (there always is). We just keep stashing away the cash and strike when the right opportunity presents itself. I wasn't as prepared when the market corrected in June, and quickly ran out of funds. Nothing is more frustrating than running out of cash when everything you've been eyeing is on clearance! Lesson learned ;)
Happy hunting!
Yeah NSC and INTC are indeed looking good. The only thing is I don't want those companies being large positions, I'm happy with the size they are right now. I don't trust them as much as say MCD or PM. However if NSC or INTC go significantly lower at some point it would be too good of a deal to turn down!
DeleteWhat really bugs me is that when the markets did correct in 2012 (June) I was on leave and not really focused on investing. Infact the best day out of the whole year (so far) to buy something, I was in my car driving from NC to MI. Didn't have internet access at all. I had a lot of money ready but should have bought more. Even when things go lower you will never know if it's a good time. At the time I thought the markets were going lower, you can read my posts on this blog!
In June I was talking to my buddy who sold everything and had decent reasons for doing so. I was telling him how I just bought MCD & OMI and that I didn't care if prices went lower. It makes sense looking back at it, but is harder to do in the heat of the moment.
It is useful to have some reserve cash, but I've learned you can have too much! I have enough to make 6 purchases, unacceptable!