I am actually building a bit of a war chest of cash. I believe we are nearing a serious crash. I think the catalysts will be (1) the Super Committee not coming to a satisfactory end and Wall Street losing all confidence in Washington along with another possible downgrade and (2) people realizing that Italy will not be able to stop the hemorrhaging and that Europe is in serious trouble.
I hope I am wrong as I am not sure I have the stomach for another extreme crash, but I plan to be 50% in cash just in case. Hopefully, my dividend portfolio will hold up better, but I am not so sure as CEL, LNC, SLF and STD have all really been struggling.
I did get some news on some of my stocks recently.CEL - Cellcom Third-Quarter Net Drops 40% as Competition Increases
LNC - Lincoln National's Board of Directors Approves 60% Increase in Dividend
Obviously, profit down 40% due to increased competition is not good. That being said, even with those results CEL will pay a 51 cent quarterly dividend. If that is the new run rate, they are still yielding about 10%.
On the flip side, LNC increasing their dividend is a great sign. This is a $20 stock that could easily be north of $30. They are only 40% of book value and either they will eventually gte to 100% of BV or else BV will be written down as it is over-stated.
I did have some stocks go x-dividend recently.
- PVD had $1.80 dividend without really telling anyone
- MSFT went x-d today at their new higher dividend
- BHK and CSQ went x-d late last week, of course they have monthly dividends.
- WBK and INTC went x-dividend at the start of November
PRE and SLF go x-dividend over the next few days. So I simply continue to buy and hold all these divvy stocks and reinvest the dividends. Easy-Peasy, good markets or bad. The great part about my shift to dvvy stocks is that I have had no trouble being disciplined. I enjoy getting dividends on dividends.
Later!
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