Posts
2024 Year End Review & Dividends – 3rd slowest increase in cash dividends
since 2011
-
Although 2024 started off as a year where investors were anticipating
whether rate cuts would happen (rate cuts eventually happened on 18
September 2024)...
3 hours ago
Both is best :)
ReplyDeleteHigh yield .... need to buy a basket of strong moats dividend-growth companies at low-to-moderate valuations .... and hang on for years & decades. It's a game of patience .... longer you hold the better, provided the companies maintain their strong moats! LOL. Need strong conviction & analytical skills to be able to re-invest dividends or keep putting new money into these companies as well.
Money as security blanket .... have liquidity / living expenses fund for the shorter term (1-3 years). Frankly, any expected expenditures for the next 3 years (or even 5 yrs) shouldn't be in stocks or other risk assets.
Money --- should also build up warchest during good times e.g. saving up a portion of dividends; using appropriate overbought indicators to harvest some paper profits; using appropriate trend indicators that you're comfortable with to prevent losing too much profits + capital back to bear market or serious corrections.
Trend indicators --- also need to know when to buy back in or scale in as well.
I personally try to use the money methods above. But too impatient for the Yield method haha! And also too lazy & too stupid to analyse & monitor those individual companies. :P
Money can buy laziness and over ride impatience. Money can buy many thing. Lol!
DeleteWithout incurring income from full-time job it is even more critical to keep a few years of rotting cash to fund household expenses and to ride over the next bear market to deploy war chest.
Deletevery short-term investors are traders
Delete