Micro Blog #5: Did The Toilet Flush Today?

I was watching CNBC today when Mr. Wonderful made the following comment on market's 600+ point drop today:

"I love when the toilet flushes on Friday"

I would have to agree with him. Friday is a perfect day for the market to flush as there is a full weekend to cool things off and think about what happened and to strategize for the next week's buying opportunities.

Since my investment objective is to increase income through dividends, I like to think market dips and corrections as an opportunity to buy more quality stocks that are accidentally becoming very high yielders.

I would say anything above 4% yield is a high yielder and 5% and above a very high yielder.

My favorite high and very high yielders:


I did raise some cash today by selling a stock I didn't want to own in the first place. It was a bank stock UMPQ with a slightly over 3% yield. I owned it for less than a year and decided I didn't want to own it because I don't understand banks and hate researching them.

I had to correct my mistake, so I took a small 12% short-term profit and got rid of UMPQ. Now, I have enough cash to add to at least two or maybe three of my high or very high yielders.

I'm thinking T, SO, and may be PPL. What are your favorite high or very high yielders?

Disclosure: I currently own all of the stocks mentioned in this post, except UMPQ.

Comments

  1. Nice list Mr. ATM. I'm a fan of T, but also considering SO and VZ. Much of the companies in my portfolio have low yields and I realize that's ok in the long term since I'm a buy and hold investor. But, it still bothers me when the average yield of the portfolio is under 3% or even under 4%. So I very much like the idea of higher yielding stocks that are still relatively safe companies to invest in.

    Given a long term horizon, market declines, in my opinion, are a great thing as an investor can generally purchase stocks at a cheaper price. Another reason why it's sometimes good to have cash on hand to take advantage of such price decline.

    ReplyDelete
    Replies
    1. Thanks DP.

      So the way l manage current yield of my portfolio is by monitoring the lowest yielding stocks in my portfolio and trimming them when their current yield nears or falls below 2%. For most of the time, these are the stocks that have run up quite a bit and have a nice gain but their yields have dropped considerably.

      The strategy allows me to raise cash which then goes into buying higher yielding stocks, and pushing up average yield of the portfolio.

      Delete
  2. That's a nice basket of stocks with a great average yield. The market sell off combined with dividend increases from many of these companies have created new opportunity. I like your micro blog concept. It's kind of a hybrid between twitter and a traditional blog. You provide good concise insight and I think that has value for readers. Tom

    ReplyDelete
    Replies
    1. Yes Tom l’m always looking to increase my portfolio’s cash flow and market dips provide great opportunity to grab more shares of high quality companies at high yields.

      Regarding micro blogging, you said it perfectly, it is a hybrid of Twitter and a traditional blog. But more so, l like this format as it aligns well with my day job of watching the market and monitoring stocks while providing some useful piece of data or insight to the readers.

      I’m glad you liked the new format :)

      Delete
  3. Loving the new micro blog setup. If this works for you, it works for us!

    I've bought and expanded on T and O in the last year. I've been looking at SKT but never pulled the trigger. Something about the whole outlet thing holds me back.

    ReplyDelete
    Replies
    1. That's very kind of you Mr. Robot. Thank you! Yes, so far I like micro blogging too.

      Great job picking up some T and O. I do own SKT, I like it because it is in outlet malls which are doing much better than traditional malls. They are also more immune to recession as outlets are all about discounted and bargain prices. It also has a high quality BBB+ credit rating similar to O and NNN.

      There is probably more downside to REITs given continued bond selloff increasing interest rates. I'm not averaging down on REITs, instead I want to see interest rates stabilize a bit before picking up more shares of REITs.

      Good luck and thanks for stopping by

      Delete

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