Dividend Investing Is Like NFL Football - PowerPoint PPT Presentation

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Dividend Investing Is Like NFL Football

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Want to have as much fun with dividend investing as watching a good football game? The similarities between investing and football could shock you. – PowerPoint PPT presentation

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Title: Dividend Investing Is Like NFL Football


1
Dividend Stocks Research
Dividend Investing Is Like NFL Football
2
Welcome to Dividend Stocks Research Your premier
site for Rankings and Reviews of the best
dividends stocks around. For more info on
dividend stocks please visit our website
DividendStocksResearch.com
3
  • Get Your Free Report On What You MUST Do to Never
    Run Out of MONEY in Retirement!
  • Well tell you about this
  • Special Offer
  • at the end of the video!

4
  • Hi, My name is Aaron and Im with Dividend Stocks
    Research, today were reviewing our recently
    published article

5
  • Dividend Investing Is Like NFL Football

6
  • I dont know if it hits you. But this time of the
    year, theres something akin to a spiritual
    reawakening. Footballs back. Lets just get the
    hook for Deflategate. Enough already.

7
  • And please, no dividend deflation. Its tough
    enough making money on the market without
    dividend cuts.
  • Before 4 oclock on the afternoon on September
    1st, NFL teams had to reduce their rosters to 75
    active players max.

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  • Ive never owned 75 stocks. Way too many to keep
    a watchful eye on.
  • But this time of the year, I kind of like the
    idea of reducing the roster, and making sure the
    dividend stocks in my portfolio are winners.

9
  • Well before December, when the institutional
    traders are dressing up their portfolios to show
    off year-end results, I like to have my
    housekeeping all taken care of. Whats the best
    way to reduce your own roster of dividend stocks?

10
  • Here are a couple of classic, time-honored Wall
    Street pieces of advice, tips for dividend
    investing to keep in mind.

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  • Dividend Investing Tip 1

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  • Let your winners run.
  • The door definitely swings both ways. A lot of
    investors swear by this rule, and a lot of
    investors consider it a recipe for disaster.

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  • Well, greed does have a way of getting us in
    trouble. So heres my take. It all depends on the
    overall performance of your portfolio, your need
    for income, and what needs to happen with the
    allocation of your assets.

14
  • If youve had a winner thats been on a run, say
    a stock like JP Morgan Chase JPM, you should
    have a good reason why you want it sell it. If
    you sell JP Morgan Chase, what do you do with the
    proceeds?

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  • Is there a stock waiting in the wings that youre
    enthusiastic about buying? Its just like the NFL
    coach managing his roster. Whos going to play
    the position?

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  • If you think about each one of your dividend
    stocks playing a position, and performing a
    specific function in your portfolio, youll be
    making a smart move.

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  • For instance, if you like whats happening with
    the housing recovery right now and you want one
    of the best dividend stocks in this sector, do
    you have this covered?

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  • If you think European markets have been beaten
    down to fire sale levels, do you have one of the
    best dividend stocks for this opportunity?

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  • NFL coaches need balance. Championships arent
    won when you have too many offensive linemen and
    not enough wide receivers.

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  • So make sure your portfolio has good balance when
    it comes to your dividend stocks.
  • And heres something else

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  • Dividend Investing Tip 2

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  • Dont worry about leaving some money on the
    table. You dont want to hold out for every last
    dollar.
  • You cant possibly know when to sell at a precise
    market high.

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  • What you can do is make the trend your friend,
    keep an eye on trading volume, and sell when you
    believe enthusiasm is approaching its peak.
  • Dont get all wound up about selling too soon.

24
  • Its not like youve turned over the ball on your
    own one yard line. You know what? On the first
    trading day of 2015, you could have bought
    Starbucks SBUX for 40.72. The last time I
    checked, the other day, it was at 54.85.

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  • Its not exactly a dividend powerhouse. The
    yield is 1.17. But the dividend has been
    growing for four years and the dividend payout
    ratio is a modest 40.5.

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  • For all its maturity, Starbucks performs like a
    growth stock, with solid capital appreciation.
  • Look at what Starbucks has done over the past
    year

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  • If you own Starbucks, should you sell it?
  • Is this a winner you want to let run?
  • Well, maybe you take some profits, if you have a
    another stock you believe is ready to go on a
    similar run.

29
  • Maybe your portfolio needs some rebalancing.
    Perhaps your asset allocation is a bit heavy on
    stocks and light on bonds because of the capital
    appreciation of your stocks. Or maybe you dont
    like the lofty market valuations.

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  • Whatever the case, have a good reason why you
    want to take some money off the table.
  • And heres something else to keep in mind.

31
  • If everybodys in love with Starbucks, and based
    on what we see from the analysts reports, they
    pretty much are, maybe you take this advice from
    legendary investor Sir John
  • Templeton...

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  • The time of maximum pessimism is the best time
    to buy, and the time of maximum optimism is the
    best time to sell.

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  • Dividend Investing Tip 3

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  • Stocks arent bought and sold facts, but
    expectations.
  • Sure, a fact such as an earnings report or a
    change in the dividend growth will trigger buying
    and selling.

35
  • But its always what we believe the fact will
    bring. Pound down seven Old-Fashioneds and the
    results are fairly certain. With your dividend
    stocks its a similar kind of cause and effect,
    only the effect isnt a given.

36
  • Its an expectation.
  • When earnings growth slows down, we expect the
    stock price to slide. When a dividend is cut,
    especially following years of reliable growth, we
    expect the stock price to take a hit.

37
  • Dont confuse facts with expectations. Dont
    assume a guaranteed cause and effect. The market
    has a way of throwing us curves.

38
  • And when it comes to evaluating your dividend
    stocks, whether to hold or sell, try to make the
    best connections possible with the information at
    hand between facts and expectations.

39
  • Dividend Investing Tip 4

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  • More often than you might expect, its best to do
    nothing.
  • Heres a comment from one of the more notorious
    Wall Street speculators of the early twentieth
    century, Jesse Livermore.

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  • After spending many years on Wall Street, and
    after making and losing millions of dollars. I
    want to tell you this It never was my thinking
    that made the big money for me. It always was my
    sitting.

42
  • Riding out storms and socking away dividend
    checks isnt a bad way to go. Better yet is
    reinvesting your dividends.
  • Curious about this?
  • Heres how dividend reinvestment plans really
    work.

43
  • Ready To Cut Your Dividend Stocks Roster?

44
  • Use these 4 dividend investing tips. Theyll
    help you evaluate your dividend stocks from a
    fresh perspective.

45
  • After all the market volatility weve had, taking
    a deep breath and taking a measured look at your
    stocks is probably a good move.

46
  • Is it hard? Sure selling a stock thats done a
    nice job for you isnt easy. But just like a
    hard- nosed NFL coach, you need to set emotions
    aside.
  • (Easier said than done.)

47
  • Boil it all down to performance.
  • And remember, were projecting future
    performance.
  • And whether youre looking at an offensive
    lineman or a dividend stock, thats always tough.

48
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49
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