Investment Strategy - Guidelines

Adsaff adsadsd By Adsaff adsadsd, 29th Dec 2010 | Follow this author | RSS Feed
Posted in Wikinut>Business>Investment

Guidelines for a long term dividend Investment Strategy.

Investment Strategy - Guidelines

I am a long term dividend investor.
Therefor I've decided to set up a list of guidelines I have to relate to when I invest. This is to not make irrational or spontaneous decisions and purchases I will regret in the future.

1. Gearing (loans) should not exceed more than 50% of total assets.
2. I will not invest in companies with less than 3% dividend.
3. Only three purchases and two sales per month.
4. Shares that do not pay dividends should not exceed 10% of the portfolio.
5. If a stock does not pay dividends in the space of 16 months, it shall be reassessed.
6. I will not buy stocks with higher P / E than 20
7. If a share in the portfolio cuts dividend it shall be reassessed.
8. I will not buy companies with bankruptcy risk.

These measures should reduce the risk of big mistakes and big losses.

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author avatar Retired
29th Dec 2010 (#)

thanks for the info.

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author avatar Downwindz
9th Jan 2011 (#)

Very good tips, thanks for the share.

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