Friday's payments from Abbvie, Abbott Labs, Kinder Morgan, Procter & Gamble, and Realty Income pushed my lifetime dividend total over $10,000. I have been income investing a bit over 3 years now, boy it sure goes by fast. Prior to investing solely for income I was part of the total return camp for well over a decade. I had owned mutual funds since high school (some individual stocks too), though I started taking saving & investing seriously when I joined the military in 2008. The great recession was a big test for total return investors, and I discovered I couldn't handle total return investing psychologically. If the financial meltdown never happened I'd probably still be indexing and still think individual stocks are for suckers.
In a way I'm glad the great recession happened when it did. It lead me down the path towards income investing which allows me to sleep well at night and meshes better with my long term goals... I never felt comfortable with the 4% rule! Anyways my investment assets are approaching $175,000 these days, the thought of losing 40% of that number would send chills down the old total return investor in me. I found a better path, although it is clearly not for everyone.
Holy Moses! If I had debt (I don't), I'd consider paying down debt as an option along with investing as a use for excess capital from my day job. It's a tough market out there for value investors. Even though I don't care about capital gains I still want to preserve my invested capital. That's where value investing comes in. If I stick to purchasing a diversified set of undervalued or fairly valued high quality equities, capital preservation will take care of itself. Capital preservation is the reason I focus on value and also on high quality companies.
I prefer low purchase prices and the market is simply not cooperating. Yet I still have capital to invest, November has been very frustrating so far. I placed limit orders on both CVX and LEG this month. Turns out my chosen purchase price for both companies was about $.25 off. Missed out both times and I didn't have the opportunity to make adjustments during trading hours. At this point I still need to put money to work or else I will not be able to increase my passive income stream. I'm going to purchase something, right now I'm still interested in CVX & LEG. DE will also be thrown into the mix. Don't think I've bought a stock from the industrial sector all year o.O
Turn Over = Too High
It's a shame I've had to sell so many positions this year. I've been forced into selling HNZ, BWP, INTC, and recently SNH due to dividend freezes (HNZ was bought out, nothing I could do there). 4 sells in one year is way too much. In the future I plan to focus more on quality companies that are as close to a sure bet as possible when it comes to dividend increases. Perhaps next year I'll have to do a bit more portfolio retooling as I do question some of my picks from years passed when I was interested in high yield over high quality. Maybe a few decades from now I will have mastered the art of dividend growth investing. Favoring high yield is a beginners mistake, I'm learning as I go.