Garden Growing and 2017 Q3 DIV. Report Q&A II 10.04.17


EOM Q&A: Garden Growing and 2017 Q3 DIV. Report Q&A II  10.04.17

Before answering–I need to first explain my Garden Growing strategy.  

Garden Growing Strategy 

1.  Select high-paying dividend securities-use the Simple Simon Buy System 

2.   Consider candidates from the All-Star and CEF VIP Lists

3.   Use incremental buying-scale into positions

4.   Determine downside price-percent targets in case the price heads south

5.   The goal is share growth-increase shares with dividend reinvestment

An example–if using $10,000, purchase equal amounts of nine high-paying funds.  Have the dividends reinvested in additional shares.  See how long it takes to double the amount of shares.

When Gardens mature, you have the option of:

1.    Continuing

2.    Harvesting entire gardens and converting into cash

3.    Harvesting the dividend yields 

If closer to or in retirement, gardens expiring 2-3 years out need to be more conservative than those expiring 5-6-7+ years out. 

Action Points…

1.   Before buying, research which indicators the Institutions are using for buy/sell signals. 

2.   Use alerts/triggers once a price target is hit.  Then use the appropriate system before buying/selling.

3.   Use stop orders, either mental or a strategy stop. Protect your downside-always.

4.   Use your “Rules of the Road” parameters for ALL securities. No more than X% of the total account on one security. 

5.   Paper trade all systems until profitable.  Feel comfortable with the strategy and approach. 

6.  Monitor News events-dividend increases or reductions.

7.   Keep it simple. 

Tomorrow, I begin to answer your questions on the Q3 High Dividend candidates.

Enjoy your week!

David O. England


Plan your work, work your plan, and share your harvest! 1 Timothy 2:1-2

This information is for Educational purposes only. It shall in no event be construed or interpreted as an offer or recommendation to buy or sell securities of any kind.

DAVID O. ENGLAND is the founder of the Eye on the Market-Training Academy and Associate Professor Emeritus of Finance. This column is presented for educational purposes only and not intended as financial advice.

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