Dividend Post - Long term investment time frame - Growing income stream - Risk averse - Join Us

Tuesday, October 7, 2008

Get Paid to Wait

The proverbial brown stuff hit the oscillating blades yesterday. Dividend investors, invested in cash generating businesses with limited debt or strong brands will get paid to wait out the storm.
These types of investments leave conservative long term investors many opportunities and strategies.

1) No Fear Factor - If you have a higher tolerance for risk, down times such as these provide ample opportunity to step up with larger amounts of capital to buy issues trading at large discounts.

2) Fear Factor - If your tolerance for risk is limited, then continue buying into the markets during good times and bad with limited amounts of capital every investment period, whatever period that makes you comfortable. Monthly, weekly, semi annually, etc.

In either case however ONE distinct premise must remain intact - the companies in which you invest MUST have the wherewithal to withstand the storm and maintain their dividend. Cash remains king.

Our scorecard to October 1st has been posted online at
http://www.vmwinc.com/DP/ScoreCard/SCHome.htm

The scorecard is based on item 2 (Fear factor) above . One share of each company is included in the model portfolio. This translates into equal share purchases on a regular basis.
You may for example wish to purchase 10 shares, 20 shares, 100 shares of each issue whenever you make a purchase. Your results will vary if you purchase different share amounts of each issue depending on the share price and cash availability.

As always, members of my mailing list receive a FREE user ID and password to access all data research available at The Dividend Post, as well as to receive updates as new issues are posted.

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Dividend Post

The Dividend Post is first and foremost a stock selection newsletter,
where I profile great companies that pay dividends. My criteria for stock selection
rests on the following sound investment principles rated in order of importance:

1) Strong past performance.
2) Solid business franchise.
3) Strong Free Cash Flow to fund future dividends and sales growth.
4) Dividend Growth
to provide a growing income stream over time (Dividend Growth Model)
5) A good purchase price so as to benefit from capital gains over long periods of time.

Dividend Post is targeted at the following investment profile:

a) Long term investment time frame (5 years or more)
b)
Desire for an additional and growing income stream in the next 5 to 25 years.

c) Risk averse