I Dream of Panic

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The dividend growth investor loves to see high quality businesses trading at a discount. The problem is that the “good deals” are hard to find these days. The overall market is up, real estate is recovering, and nobody seems to be flailing their arms and desperately selling their shares. Times are good, but that means opportunity is limited.

If we turn the clock back to 2011 or 2008, great deals on dividend stocks were easy to find because there was panic in the streets. Stock prices were falling, which created more panicked selling which lead to even lower prices. If you weren’t viewing stocks as dividend engines, you’d be freaking out that your portfolio was plummeting. These were huge opportunities for dividend investors to pick up some great deals.

I had not found my strategy yet when those price dips came around. So now, I’m hoping for another chance to get in on the ground floor. I’m hoping, people panic.

Comments

My strategy is just be fully invested now. However if their is a big dip I plan on using my margin to really load up. Till that time I will just collect my dividends and re-invest till that day. That day is comin but nobody knows when!

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Kevin said:

When it comes to trying to “time the market,” you’re absolutely right. It’s far better to own quality companies at fair values than miss out on dividends waiting for the dip. If we were always waiting, we’d have missed out on the huge gains of the past 2 years.

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David said:

Stay invested and with 20% cash holding on standby.

David

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