My Strategy With High Yield Monthly Dividend Stocks

Posted on Wednesday, June 24th, 2009 | In Investing Lessons

Contributed by: Jim Musselwhite (http://www.straightstocks.com) -

By Guest Author: Tony Farrell (http://www.monthly-dividend-stocks.com)

Get my list of high yield monthly dividend stocks at http://www.monthly-dividend-stocks.com
My strategy: Research and discover all high yield monthly dividend payers, and start buying them up a whopping $ 200 or so worth at a time. WHAT?!?!? ARE YOU SERIOUS?!?!?!? Yes that’s right ONLY $ 200 each. If I had $ 20,000 to invest then I’d be acquiring about 96 positions at $ 200 each and paying the rest in trade commissions. Always get dividends paid in cash, make additional cash infusions when I can to accelerate the process, and use the cash to acquire more positions in other monthly dividend payers. Continue to buy more and more positions as enough cash becomes available, $ 200 or so at a time in each one, starting with higher risk / higher yield and working down to lower risk / lower yield (remember, time is on my side). Similar to many of the funds themselves, the focus is primarily current dividend yield and maximum dividend yield (the highest regular monthly dividend paid out in the last five years) relative to last trade price. Secondary focus is capital appreciation (the highest price it traded at within the last five years), which is also necessary for reasonable dividend growth. Note however that capital appreciation is often dictated more by demand and less by how the market moves. I would also consider, if the price was right, expanding certain positions already acquired. For now I am basically ignoring pretty much everything else that normally matters including industry, leverage, management, locality, expense ratios, and so on. I am generally assuming everything is gradually moving up over time because, quite frankly, at least in my opinion, it is.

So I created this web site because I had much difficulty and I was spending many hours putting together analysis tables of what to buy when and researching and trying to find the best stocks, funds, CEFs, ETFs, and so on to buy next. Just when I got a table all set, prices and dividends changed and I had to manually update everything, it was very time intensive just trying to track 50 stock symbols. I figured there must be other people out there who have the same dilemma. It seems that investor appetite is increasing quickly for higher risk and higher return items such as junk bonds, and there is a flight to dividend paying stocks. If only they knew about all the great high yield options out there! I certainly didn’t, and I am very glad to have this resource available to me. I am also very pleased to offer it to you at your own risk.

I am not recommending or endorsing any given stock, fund, investment strategy, or anything else. I am merely providing a picture of my own personal investment strategy and providing you with the tools to access the data I use the same way I do.