So I started stockpicking about a year ago. My strategy was to buy companies that had been consistently growing their dividends since at least a decade or if not a decade they should exceptionally good companies. I bought most of the stocks when I saw that the companies have some temporary troubles which had a negative impact on the share price.
Here is the list I have bought so far:
BA - 2016 Sept at earnings release $140 - now at $264
FLO - 2016 Empolyee scandal, company was sued $15 - now at $18.70
Nestle - child labour scandal - 69 CHF sold at 80 CHF
COR - 2017 January $78 now at $113
GWW - 2017 July Amazon Panic $163 - sold at $210
JNJ - 2017 January Actelion uncertanities $116 - now at $142
TD - 2016 Sept 56 CAD - now at 71 CAD
QCOM - 2017 Sept - Apple Panic $52 - now $52
I did not expect such a great increase in the prices of these stocks. I bought them because they seemed recession resistant (except BA). I am thinking now whether it is worth keeping them just because they are paying growing dividends and they are really shareholder friendly companies.
Currently I am about 30% Cash, waiting for a pullback on the market or on a dividend growth stock. Do you guys think the strategy I am doing is viable on the long term? Or should I also consider non dividend paying stocks?
The biggest pros I see with dividend growth stocks: - Even if the market tanks I can generate cashflow from my investments - Dividend growth with a reasonable payout ratio means that the company is doing good in general
I bought the ETF BOTS recently just to ride the AI/Robotics hype and to have something that is not paying dividend.
I would also add that my situation is a bit special as I live in Switzerland where you do not pay any taxes on capital gains , but you pay 30% tax on dividends (from which you can get back an extra 15% during tax declaration).
Some questions to start the conversation: Also which of the above stocks would you sell if you were me? For example FLO sells bread but bread consumption is trending downwards currently in the U.S. What do you think of my strategy? Do you see any issues with it long term? So do you have any suggestions what companies to look for if I am afraid of a general pullback on the markets? Are there any companies which have some temporary troubles but are well managed and should recover in the future?
Submitted October 21, 2017 at 08:14AM by wsace http://ift.tt/2yIp2g4
