Comments on: Investing in Single Stocks – Why I Don’t Do It?

By: Dividends4Life

Dividends4Life — Thu, 01 Jan 1970 00:00:00 +0000

I echo The Div Guy’s sentiments. Investing in individual stocks is more risky. If you are not comfortable doing it, then you shouldn’t feel like you have to. you can be successful not doing it. As for me, I enjoy the challenge. Here a post detailing why I do it:

http://dividends4life.blogspot.com/2007/11/is-your-portfolio-average.html

By: The Div Guy

The Div Guy — Thu, 01 Jan 1970 00:00:00 +0000

I am not saying stock investing is for everyone but it can be fun for someone willing to do a little reseach. First, I would say you need to work on your goals from your step 1. I have a little over $100K in dividend stocks and currently own 27 stocks. My top ten holdins are KMP, ACAS, DSX, PWE, BCS, HRP, PG, AYR, XOM and SFI. I am looking for my stocks to return 8% or better including the dividend income.

You can look at a number of sources for stock information such as Value Line, Morningstar and Standard & Poors. Most are available at your local library for free. A very good book on dividend investing is The Single Best Investment by Lowell Miller.

I also have about $400K that is mostly in index funds with Vangaurd.

By: PT

PT — Thu, 01 Jan 1970 00:00:00 +0000

@The Div Guy – Great comment. Congrats on being in such a solid position. Sweet vacation choices.

I guess I just don’t know enough about investing for dividends. I plan to check out your blog to find out more, but can you tell me some basics: how many you have? what % of your assets are in these stocks? why this is better than mutual fund returns?

By: The Div Guy

The Div Guy — Thu, 01 Jan 1970 00:00:00 +0000

I enjoy investing in individual stocks. I have your no. 1 covered. I have over a years expenses in money market accounts and I have money saved for our vacations later this year to Colorado and Palm Springs.

The reason I invest in individual stocks is to build up a portfolio of dividend stocks to pay me an income in retirement that will increase at a rate greater than inflation. I only spend a few minutes a day reading any news on my stocks. It is not that had to select stocks if you have a process for selecting stocks. Best of luck.