Dow Falls Almost 300 Points – Worried Yet? I’m Not.
Even with the DOW off almost 300 points for the day and down over 1000 points from it’s high just a few months back, I’m not worried because the income just keeps on coming even on the down days.
As a matter of fact, if you’re going to be a stock investor, it’s days like today that should make you happy, not sad. These are the days when you find bargains or at minimum you get that much closer to a point you are willing to buy at.
The market has remained decidedly negative and I’m not going to even try and call a bottom, but I will start looking for good buys to add to the DDI portfolio next week.
In The Mean Time
Here is today’s good news in the form of 4 companies with stock dividend increases:
Daktronics, Inc. (ticker: DAKT) operates worldwide designing, manufacturing, and selling various electronic display systems and related products, as well as providing related maintenance and professional services. DAKT only pays semi-annually and had very minor 1/2cent raise from $0.11 to $0.115 giving it a current yield of ~ 3.5%
DuPont Fabros Tech (ticker: DFT) is a a real estate investment trust or REIT that engages in the ownership, acquisition, development, operation, management, and lease of large-scale data center facilities throughout the United States. DFT raised it’s quarterly dividend by $.03 to $.15/share with a new yield of 2.4%
Post Properties (ticker: PPS) – is a REIT founded in 1971 which primarily invests in multi-family properties. PPS raised it’s quarterly dividend to $0.25 for a yield of 2.1%
EPIQ Systems (ticker: EPIQ) provides integrated technology solutions for the legal profession that streamline the administration of bankruptcy, litigation, financial transactions, and regulatory compliance matters for clients throughout the world. EPIQ raised it’s dividend by 20% to $.065/share on a quarterly basis which works out to 2.4% yield.
It’s definitely not easy to buy when the market drops – it seems to go against human nature to buy when something is losing value. But the brave ones who buy when shares sell off are the ones to reap the rewards when prices increase. Because I primarily reinvest my dividend income, I’m not as worried about losing my principal when buying new positions. If I have cash in the account I’ll look to add to my positions because I know there will be more cash in the account in a few days if the market continues to drop. I’ll always have another chance to add to my holdings, even if I buy too soon.
With Summer just around the corner it’s good to take a break from all the financial worries when markets are acting so crazy… Put down that laptop and pull the plug on your email – it’s time to enjoy some sun and fun. The markets and your dividends will still be there on Monday….talk soon!
As always when evaluating investment opportunities it’s important to keep in mind not only the fundamentals of the stock itself, but also how the holding entity (Limited Partnership,Royalty Trust, Master Limited Partnership, Business Development Company, Preferred Stock) may affect the way you report income on your annual tax return as well as the amount or percentage of tax you will be required to pay.
Keep in mind that adding shares of any of these special entities to tax deferred / retirement accounts may also present additional issues.
Remember to review all of the fundamentals of any company BEFORE investing – you shouldn’t simply buy a stock based on the dividend payout. If you have further questions about any stock mentioned her you should first consult with your CPA or tax planner / adviser before making any investments decisions.