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