by, 3rd-December-2008 at 04:59 PM (3785 Views)
Due to this current market crash I will be starting a portfolio of dividend paying shares which I will be using to try to generate a long term income stream.
I will be using $50,000 start up capital with all dividends re-invested and I will try to invest another $5,000 each year for the next 5-10 years.
There will be basic fundamental requirements to be applied to each stock. Obviously paying a d/e, as well as low debt levels (due to current conditions), good earnings growth potential, a basic solid company history, I will also prefer a low d/e payout ratio.
I will also be filtering these stocks through tech analyse due to this being my preferred method of trading. I won't mind buying stocks in a trading range but won't be buying stocks in a solid downtrend unless there is a very good reason.
I won't be spending more than 10% on an individual stock to start with.
While these stocks will be purchased as long term holds I will not be bothered selling partial or full holdings of stocks if conditions require it.
I will be slowly drip feeding my capital into the market over the next 12-24 months as the current problems effect on company earnings becomes a bit clearer and we get a more accurate picture of d/e yields.
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