Re-Investing Your Dividends Today Will Boost Your Income

Sep. 25, 2020 8:35 AM ET, , , , , , , , , , , , , 118 Comments

Summary

  • Knowing what's going on will help you keep your portfolio successful.
  • Stop chasing others when you're working your plan.
  • Whipsawing or range-bound securities are not a pain point for income investors.
  • In fact, by using a pullback to your advantage, you are boosting your future income.
  • Looking for a portfolio of ideas like this one? Members of High Dividend Opportunities get exclusive access to our model portfolio. Get started today »

Co-produced with Treading Softly

As income investors, we diligently work to uncover the best dividend opportunities that meet our criteria as value-focused income investors. In short, we use our proprietary Income Method to approach the market in a way that does not require constant trading, gamification, or gambling.

As the market whipsaws, we've seen an uptick in the desire to become a stay-at-home day trader among investors we've spoken to. They point to the success of others and say "look at that trade!"

Jealousy and envy are often the weights that lead to an investor's demise. You need to keep a long-term view to remain solidly an investor and not a trading gambler.

We help our members do this by providing regular market updates, macro-economic insights, and educational reports to help flesh them out as well-rounded investors.

The State of the Economy

The US unemployment figures that came out on Sept. 4 reported the rate falling to 8.4% for August from 10.2% in July. It was a nice surprise as economists expected it to be at 9.8%. This shows that the US economy is still resilient despite the ongoing impact of the pandemic. Following the news, we saw some notable strength in residential REITs (VNQ) and mortgage REITs (REM), two sectors we have been bullish on, while technology stocks (XLK) have taken most of the hit.

Having said that, there are many positives to look for:

  • The US economy is clearly improving better than expected.
  • We remain in a strong uptrend market despite the last days' weakness.
  • Importantly, investors are eager to buy more equities. Today, there's tons of cash sitting on the sidelines and invested in CDs and Treasuries. With the current low-interest rates, these investors have been penalized because they are earning next to nothing in interest. At each and every pullback, it has been

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This article was written by

122.39K Followers

Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991.

Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield.

Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone.

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Analyst’s Disclosure:I am/we are long O, REM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Treading Softly, Beyond Saving, PendragonY, and Preferred Stock Trader all are supporting contributors for High Dividend Opportunities.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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