Sunday reflections: Tweaking The Dividend Investing Plan with The Ultimate Dividend Playbook

You can find this great dividend investing book on Amazon.
https://amzn.to/34SdKDZ

For our dividend investing explorer and guide http://www.dividendexplorer.com

The plan is simple: rank the US stocks with a market capitalization of at least 10 billion by scoring them. Generate the list at the beginning of the month and just buy another stock from the list for each trading day. We buy the highest ranking stock from the list that we do not own yet.

We updated the ranking system for the first time one week in, we felt that the original filter was not filtering out so called divident traps. A dividend trap is a stock with an attractive dividend but with risky fundamentals.

We only invest 1/250th of the capital we would like to invest per day. In my case this is about 50 dollars. If a stock is valued at a multiple of $50 USD and we can not buy fractional shares we buy a full share but skip the stock for the amount of months equal to the multiple. For example: if on Monday we buy 1 share of a stock XYZ rated at $110, we skip buying a stock on Tuesday and skip buying XYZ at the next buying opportunity.

`Once the portfolio starts to generate dividends and the accumulated dividends are greater than the minimal investment we are allowed to celebrate and buy 2 stocks from the list.

I will document the journey both here on youtube and on my website dividendexplorer.com. You can also subscribe to the mailing list on my website for the monthly dividend stock list. We are at the start of a recession due to a global pandemic so it will be an interesting journey.

We updated the list algorithm on April 19 2020 because the original ranking tended to revert to a mean and give possible dividend traps an advantage. We will start again from the top of the list, until we generate our new list in May.

April 20 2020: Buy PBA – Pembina Pipeline Corporation (8.82%)
April 21 & 22 2020: Buy WELL – Welltower (7.09%) *
April 22 & 23 2020: Buy TSN – Tyson Foods (2.69%) *

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#Ultimate_Dividend_Playbook #Dividend_Investing_Plan #Pembina_Pipeline_Corporation #Pembina_Dividend #PBA_Dividend #Welltower_Dividend #WELL_Dividned #Tyson_Foods_Dividen #TSN_Dividend

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