PSEi: 6443 pts
Market is Closed

Dividend Play or Position Trading

Message

I just have a question on how should I approach my investment strategy in stocks. Since some stocks are cheap right now, I decided to invest sa mga mgaganda dividend yields, so I got DMC and FLI. My goal is talagang kumita lang thru dividends and leave it there for maybe 15 or more years.
Where I am having second thoughts about is I know FLI has strong suppot at P1.5 and resistance at P2, while DMC would play around P10-14. Knowing these things make me think if I should just sell them when they hit those prices since base on the chart, they are already at the range where they will just bounce. With this, I can position my liquidity to other opportunities.
I've done some research on both companies, and I don't see any investment plan or change in direction of the company that might cause their stock prices to go higher than what are expected (unlike Tesla, people are not buying it because of their current balance sheet, but because of what the company can be in the future)
Would appreciate if anyone could share their thoughts on this. Thanks

Be the first to like
by nicooo 04/21/2020

I'm also accumulating stocks for dividends. The answer to your question really depends on one's risk appetite and strategy (so there's no one correct answer). One of the stocks I'm accumulating is AP; it's fairly conservative, not very high on cash dividends compared to other stocks, but relatively stable.

Selling them also depends on each person's strategy. I admire your long term vision of holding it for 15+ years, but for me personally, when directly investing in the stock market, my preference is to cut my losses at 15% and sell at 20% (stock price movement regardless of dividends). So with those conditions, my stock picks rarely reach more than 3 years. But I don't do day trading, because it's not worth the stress. I like to sleep soundly at night and not worry about my investments on a day to day basis.

For long term hold of more than 5 years, I usually just put it in certain funds and just forget about it. During these cheap times, I'm specifically putting an amount on a regular basis to BPI's High Dividend fund. But again, these are personal preferences. :)

by manny 04/22/2020 (Edited)

Really helpful. Thanks for this.

by nicooo 04/22/2020

What if you alot some stocks for long term investment and make some profit in acquiring dividends, look or make some research on who are those companies that gives great % of dividends. But to be sure, invest on blue chip companies if you want a long term investment.

And half of your power will be alloted on Position trading wherein you have to create some strategies on what to buy and when to sell. Make some cut-off like 10% or 20% etc., but depends on you when will you want to sell your equities/stocks then after that move on buying another stocks wherein you see some positive movements or green candles after you buy it on a low price.

I'm just a newbie when it comes to stock trading, never had been bought some stocks bec. i've been researching and collecting some strategies/tips before letting-go with my power. Goodluck with your trading journey!

by maiah19 01/21/2021

halos 15 yrs na akong invested sa PSE, and recently retired with the intent of living on dividends. based on experience dividend investing and positioning complement each other. dividend stocks adds stability to your portfolio while positioning adds to your potential returns. i would suggest that you position based on value approach. Boring sya but very profitable. all u need is discipline to save and live below ur means. then consistently adding that savings to ur investment and patiently holding on to the strtegy

by palayupoy 04/09/2021

Thanks for your responses. Pero would it still make sense, let's say DMC, if I got it at P4.00 then it hit P10.00 after 7yrs, that's already a P6.00 gain. For me to earn that in dividends (historically DMC gives P0.48/share), I would need to wait 13 years - hence my question, would it make sense to still hold it for long term, or sell it and buy other opportunities. Based on my research with DMC, I don't see them going higher than P12.00, long term. Capital appreciation is something I couldn't factor with my strategy now. Would appreciate other opinions.

by nicooo 04/09/2021

i would suggest that u seriously consider long term capital strategy in ur approach since the cost is way too low than dividend investing. dividend is subject to 10% tax + transaction fees of almost 2%. you have to be in the stock position that you discussed in order to create a powerful combination of dividend and capital apreciation. you have to buy a dividend stock lowand patiently hold inorder to amplify your return with capital appreciation and low cost.

by palayupoy 04/09/2021

Thanks. Something I'll really need to think about.

by nicooo 04/09/2021

Hi, hello po. good day sa lahat. I don't how to start or where to make introduction. So, i will make it straight. Im a newbie here in stock trading and I'am also a seafarer and currently onboard. I wanna make position on a trading world. I'm set for 5-10 years position or investment. My source of income is salary via BDO. Can someone here help me strategize my approach. And, I wanna do monthly investing I wanna make a portfolio of low risk, low reward.
thank you all.

by vangin 10/17/2021

Take a good book from those poeople who actually became wealthy from stock market, kopyahin kung paano nila ginawa. The best strategy is something simple, close to automatic and stick with it no matter what.

Invest on PSEi index, mababa pa sa ngayon. Then invest on some companies, a mix of small and big ones. Select only those that are paying dividends. mga Reits magagandang candidates, may dividends + may capital appreciation.

Gawin mong automatic ang pag save and do not withdraw anything pagbaba sa barko. Mag withdraw ka lang kung na reach mo na yung goal mo. Hope this helps.

by palayupoy 10/18/2021
Reply