2 stock positions raised + a few to ponder
A great example of the uniqueness...and active nature...of YARP on display as May ends
I added to 2 of my 40 stock positions, but its fair to say that as much as 20-30% of the stock holdings are “in play,” which means I am looking at possibly increasing their portfolio weightings in the near future. Some of this has to do with the timing of their ex-dividend dates, and in other cases my “radar” goes off because I see an uncertain price trend in a stock finally resolve itself (higher).
Paid subscribers can see the specific moves in the research deck, as per usual
As subscribers will come to learn, my process is not complicated. But it is repetitive, disciplined and above all, favors protecting capital over growth at every turn. Because what I’ve seen over the decades is that the best long-term returns come from not trying to be a hero and “crush it” just because the media is egging on inexperienced investors, making them think everything is rosy.
It is busy, but “good busy”
Lots going on when it comes to the Institutional portfolio model signal service. That’s because all of the things that make for busy times in my dividend investing approach are occurring at the same time, namely:
Market volatility that does not resolve firmly in one direction or the other. A “trading range market” if you will. Depending on how one looks at it, that can translate to frustration and impatience. But I see it as “taking what the market gives me,” which means expecting that the stocks I own will run up quickly, then tire out and reverse lower just as quickly. A “round trip” of 7-10% can occur in a matter of weeks. I have no issue cashing in frequently when I see that happening. There will be a time when more of a “buy and hold” stock approach will be a good idea. I don’t see that now, and when it comes to dividend stocks, I haven’t for some time.
Ex-dividend dates approaching in stocks that I have a nice gain in. Case in point, one of the stocks I bought today was one I initially bought earlier this month. Fortunately it quickly scooted up by more than 4%. So by moving what was a 2% position up to a 5% position for now, I’ll get 2.5 times the dollars when the stock soon goes ex-dividend. Importantly, the stock shows hints of elevating a bit more. Summary: this all adds up to a high “reward/risk tradeoff,” which is what drives every decision I make.
That’s another little peek into what is a day-to-day, process-driven, grind it out approach. In the coming weeks, I’ll be hosting some live sessions on topics that should be of interest, including my “meat and potatoes” approach to options, tactical dividend investing, and why modern markets are different. Dates and times coming very shortly. Enjoy!