Wednesday, November 30, 2011

How did our 2011 dividend machines fare today?

strategyImage by Sean MacEntee via FlickrWhy should you buy a stock every week?  Because you never know when the market will do what it did today.

Why should you sell calls even when the market is down, because call buyers want to get in with little capital and they too do not know when the market will do what it did today.


When the market does what it did today, everyone wins.   Of our 52 dividend machines profiled in 2011, all but Espey Engineering, (ESP) were up.   Espey, as you know has declared a special extra dividend of $1.00 so it is not surprising that it is not up. At the market close, the total 2011 portfolio (cost basis is just over $207,000) was up just over $7,000 a neat little 3.38 percent gain. Of course, when the market struggles, our portfolio value will struggle as well.   While we prefer to only concentrate on income, it is nice to know our strategy is strong when the market surges over 400 points.

Dividend income is a good investment strategy.

Very Truly Yours,

TheMoneyMadam
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