The Double-Edged Sword of Dividend Investing
As a cash-flow focused investor, you are often met with mixed emotions when your dividend stocks pull a Humpty Dumpty. It can be a disheartening experience, and the increase in unrealized losses can sometimes lead you to question your investment decisions.
On one hand, it's only natural to feel disappointed when share prices plummet. You see your hard-earned money seemingly evaporate, and it's easy to let doubt creep into your mind. Admittedly, I'm feeling this right now with quite a few stocks in my portfolio that are getting punished beyond belief.
My Portfolio's Biggest Losers | Source: Seeking Alpha
With that said, it's important to look beyond these setbacks and recognize the silver lining.
While share price is appreciation is something to be desired, the cash-flow is what you're really after. You invest in stocks with the intention of receiving consistent dividend payments over time, and the beauty of the situation is that in times of share price declines, the dividend yield increases.
SBUX Dividend Yield Over The Last Month | Source: Seeking Alpha
This means that by buying stocks at a lower price, you can actually enhance your cash-flow return. Think of it as an opportunity to acquire more shares that generate a higher yield on your investment.
Overall, you should embrace this double-edged sword of dividend investing and seize the moment when share prices take a tumble. With that in mind, here are five stocks that currently offer an excellent chance to do just that.
If your focus is on building a portfolio that generates consistent cash-flow, then market fluctuations can work to your advantage. Stay focused, stay committed, and remember that in the world of dividend investing, there is a bright side to every down side.
With that, I want to hear from you. Are there any good buying opportunities right now in your portfolio? Write to me here and let me know.
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IN MY PORTFOLIO
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PURCHASES
I actually haven't made any purchases this week. I have some cash in my brokerage account ready to go, but I'm sitting on it because I might start a position in a new company next week. Stay tuned!
DIVIDENDS
SBUX - $20.45
Weekly Total: $20.45
Monthly Total: $197.29
Annual Total: $851.87
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CAREFULLY CURATED
$2,000 INVESTED! BUYING Dividend Stocks NO MATTER WHAT! | I love seeing what the guys over on the Dividend Diplomats channel are buying. The amount they're able to invest into their portfolios every week is extremely motivating, and inspires me to try to invest more.
Is SCHD Dead? (Why SCHD Is Losing Big In 2023) | It's no surprise that SCHD has taken a big hit so far this year, buy why? Dividendology's in-depth explanation here covers that, and absolutely nails it.
$21,900 Dividend Portfolio Update! Down BIG Buying More! | If you're bummed out about your portfolio's recent drop in value, remember that you're not the only one. Numerous portfolios, including mine, are trending down, and Financial Freedom From Dividends is sharing how to transform this negative trend into a beneficial opportunity.
ICYMI
Watch this video to hear about eleven stocks that paid me a dividend in May, and find out how much I made in total for the month.
Looking for the best discounted dividend stocks to buy in June? In this video, I'm talking about 5 of them, all of which are currently priced at a bargain and can serve as excellent additions to your dividend portfolio.
In this recent Dividend Happy Hour, I share five stocks in my portfolio that look like good buying opportunities right now. I'm either seeing a loss on these stocks (in one case, I'm currently down 30%), or they're hovering right around my average cost per share. Either way, if I'm going to be adding any more to the current positions in my portfolio, these are the ones I'm looking at.
SINCE YOU ASKED
“I was wondering about your opinion between having individual stocks or just having dividend ETFs. What is your take on this please?”
- Vladi M | YouTube
Regarding individual stocks versus ETFs, my opinion is that investing in individual stocks should only be pursued if you're willing to dedicate time to researching or learning how to research companies.
Adopting a long-term strategy of blindly purchasing individual companies without putting in the necessary effort is not a good way to go. If you prefer a simpler and more hands-off approach to investing, ETFs are definitely the better option.
With that being said, there is absolutely nothing wrong with investing in ETFs. It's crucial to consider the level of involvement you want as an investor. The good thing is that there are choices available to cater to your preferences, regardless of what they may be.
Disclaimer: This page contains some affiliate links that might just lead you to the promised land of awesomeness (or at least some cool products). We may receive commissions for purchases made through links in this post. It's nothing fancy, but it certainly does the job!