Recent Buy
by | Posted 9.13.2012 | Post Comment (No Comments)

A rising stock market is not my friend. More expensive stocks and higher valuations puts me in the unfortunate position where new capital does not go as far. Higher priced stocks provide an equity investor a lower percentage of ownership of said companies when purchased at a static dollar amount, and also provide a lower long-term total return and lower entry yield. A stock market that experiences drastic upward moves may look good on paper, as the portfolio value will inevitably follow the market’s march higher, but these increased stock values only serve you if you sell your stocks. As a dividend growth investor, my primary goal is to build an ever-rising dividend income stream from great companies with economic moats and strong fundamentals. That stream is hard to increase if I’m selling stocks.

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