The Right Time
It is hard for most of us to understand the concept of patience when we live in such an instant society. We have all been brought up around the concept of now. Weather it be our coffee with a Keurig Machine, or our food with a microwave and even our TV shows with On Demand. Our very society has been so caught up in the now that it has been hard for some of us to learn the concept of patience. So here is a lesson I hope everyone can learn, and not just for investing purposes.
The Power of Patience
Thanks to my mom and dad I was able to learn the power of patience at a young age. I would have to do chores around the house in order to get money which I would intern, save up for things I wanted to buy like toys. Of course as a child I hated it, but as I started to mature and learn why they did what they did, I truly started to understand and truly thank them for it. Little did I know as a child, that I would be using the lessons I learned to help me achieve my life goals. Some goals patience has helped me achieve at such a young age are a fantastic job, a beautiful home and the very fundamentals I use in my life everyday. ( Even being patient with customers and terrible drivers on the road.)
How Patience Relates to Investing
I really want to drive this point home because, I feel that one of the key attributes that sets me apart from other Dividend investors are, my patience on when I choose to enter a position. Since I always take my time with doing due diligence of stocks, it allows me to really become aware of when I should choose to purchase in. Now, I don't always get in on the lowest price, or at the best time but I always make it my goal. the reason why I try to time my position so well is because of Dividend Yield. When a company has a certain dividend payout ratio, and payout amount that has remained unchanged for the quarter or year, it makes it really worth it to buy any dips that a stock may experience. for example, Starbucks just recently had a news article released about losing their Chief Of Operations Or COO resigned. The effect this had on the stock was negative of course and within the first hour, the stock was already negative 5%. But if you think about the fundamentals and the financials of this company, one would know that losing the COO will not change the direction or financials of the company. That is a perfect example of buying the dip and getting in on a great position. I always make it my goal before purchasing any shares of a company to wait for the perfect time to buy. I have plenty of companies that I have done research on and i'm just waiting for the right time and price to purchase. By doing this I maximize not only my investment income, but also my dividend yield percentage. Being patient on a purchase to earn even just a .25% higher dividend yield is worth it! That extra yield percentage goes a long time when we add time to the equation. Since all the dividend stocks I purchase are safe and sound companies, I expect them to grow for a long time.
Hopefully everyone can take something away from this and truly take their time when purchasing into any stock.
Waiting for Ford to hit a low has allowed me to get my dividend yield locked in at 5.28% and earn an extra $369 from where the market price is at now. That is a dividend yield increase of .84%!
Do research and due diligence and wait for the perfect time to purchase. It could make it all worth it in the end to earn that little bit extra. Because everyone likes extra money and dividends.
The only time I jump the gun to get into a stock is if i'm trying to get in before an ex dividend date. This does not happen often but once in awhile I will find out about a great dividend option I want to get into ASAP. Most of the time I like to wait out the market and wait for the right time to strike.
Please be smart with your money since we have all worked so hard for it.
Leave a comment and let me know your thoughts? Has waiting ever caused you to lose a good entry point into a company and what was learned from it? I'd love to hear your thoughts in the comment box below!
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Full Disclosure: Long Ford Motor Company