Friday, August 21, 2015

Is this the Correction we're Waiting for?

Everything is red. Blood is everywhere. Most sectors are down. Is this the correction we are anticipating?




If you take the market high at around 18,300 to now at around 16,500, the market has dropped close to 10%.

For investors focused on capital appreciation, these are fearful times. For Dividend Growth investors, this is a time when they can load up and good quality companies providing both growth and yield. This is a time when they can build up their portfolios.

Since my capital is low this month (due to property taxes/insurance etc - the joy of multiple homes/cars ownership), I need to plan and spread out my investments accordingly. 

I will try to buy one or two companies a week using Capital One's Sharebuilder plan (with lower fees). You basically make your selections on Monday (or earlier) for the trade on Tuesday. I don’t think the timing matters at all. The selections will be based mostly on my currently portfolio, but I will go for other companies on sale.

Companies on my hunting list: DE, MMM, JNJ, PG, XOM, CAT, WMT, TROW, GIS, KO, DEO, EMR, +more

Who knows if we will rebound like last November or we will sink another 10%. Either way, this scheme will allow me to slowly invest without the market noise.

D4S

Disclosure: Long on all the companies above


10 comments:

  1. Hey D4s, I agree, as DG investors, times like these are what dreams are made of. Looking at my watchlist and current yields approaching 4% or even higher on many great stocks... I just wish I had more capital right now as you stated as well. I think we have a bit of time to make our purchases though. So many options... What to buy?!

    ReplyDelete
    Replies
    1. Adam,
      Exactly the time to be living the dream! Unfortunately, my capital is low this time of year - but I managed to scrape some to invest this coming week. For me, I will try to build up some of my smaller positions.
      D4s

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  2. Yes, Yes, Yes! We are transferring over more capital from our savings to take advantage of this nice dip in the market. Looking forward to buy some stocks on sale in the upcoming weeks! I agree with Adam, everything looks so good so it will be difficult to choose. :)

    Cheers to putting more capital to work at better valuations and yields! AFFJ

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    Replies
    1. AFFJ, Indeed - difficult to choose - but based on my portfolio, some positions are screaming at me. I will try to spread out my purchases in the next few weeks. Let's see how it goes.
      D4s

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  3. This has long been overdue. There are so many companies on sale now...wish I had more capital waiting to purchase new shares.

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    1. R2R,
      Thanks for visiting! It seems we are all running low - The property taxes and insurance took a big bite this month! Let's hope we all can get some action for a while.
      D4s

      Delete
  4. Great shopping list of strong, quality companies! Let's hope this correction/sale continues.

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    Replies
    1. Dividends in Hand,
      The list is basically half of my portfolio list that I need bulk up. I need some time to level up my wall of dividend stocks.
      Thanks for visiting!
      D4s

      Delete
  5. I bought most of the names on your watch list. We will see if the 10% stay or drop some more. Goodluck to you, bro.

    ReplyDelete
    Replies
    1. Vivianne, well done on buying the companies on a dip. Since I am out of capital, I will spread out my purchases over time. I should land a few goodies. Hopefully, I can even out my portfolio.
      D4s

      Delete