Dividend Investors: Hold Your Resolve
I know in volatile markets like these it is easy to look at our portfolios and start freaking out. No one blames you if you do, because yes, its your hard earned money that has all of a sudden disappeared from your account, its your savings for retirement and all your other monetary hopes and dreams. But as a dividend investor, you need to take a stoic stance and remember that this is the very reason you got into dividend based investing. We all know that the markets are going to travel all directions, but as dividend investors we, for the most part, don't care about that. We are in it for the passive income that is generated from dividend payments. As long as the dividend payments are not in jeopardy, who cares what the stock price is. In fact, major drops in prices like this should be counted as a blessing, because now you can buy MORE shares of great dividend based stocks for the same amount of money, and this means that you can collect MORE dividends for the long run. It really is a win/win situation for us.
It's more important now, then ever, to make sure that you are selecting high quality dividend based stocks. With people trading on emotion and news, and not fundamentals, you really can find some great deals out there. I would concentrate on the big blue chips in consumer staples or other non-financial based institutions. As for picking them, you should check out my article How To Find Dividend Stocks or you can head on over to The Div-Net for some amazing articles from a lot of talented dividend based investors.
When you open up your portfolio next, remember that whatever you see is only a paper loss, and your true wealth is hidden in the regular dividend payments you have been receiving and will continue to receive. Don't lose your cool and remember to hold your resolve, take a stoic stance, and look for ways to capitalize on this fallen market.
Bullish Dividends
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Great Times!
These are great times to be a buyer. I can remember when everything was over-priced. I would much rather have this situation!
Best Wishes,
D4L