At the beginning of the year, I disclosed that I want to keep 10-20% in cash just in case of a correction. The DOW was hitting 18,xxx several times. I kept my strategy, the patience pay off. The DOW was down more than 10%, the s&p 500 was also down 10% into the correction territory. What do I do? Deploy my cash of course. I can rebuild the cash over time, but the market correction, a chance for me to improve the yields, I wouldn’t pass up on that.
I have steadily been adding 5-10 shares of dividend champion stocks since the beginning of the year. I only bought when the stocks were down 10-30% from its 52 weeks high. My porfolio looked a little bit better when the market was down 1000 points, 10% for the year. Mine was down 6%, $12k. Thoughts was going through my mind, I should pay off my student loans with this, spend more on vacations, etc. But I quickly calmed down and deployed my cash to continue to average down and bought into beaten stocks.
I kept reminding myseft they were not broken companies,
They made a lot of profits and share only 20-40% of the payouts, so dividends will continue to grow.
They didn’t have much exposure with EU or china, so their profits shouldn’t be affected by much.
I bought them before and prices when way up, so when they were down again. Deploying my capital was the way to go.
I will hold these stocks for a long time, so the short term loss won’t affect my day to day life.
I have enough emergency funds so I don’t have to sell anything in panic.
Goldman Sachs – GS – dividend added $26
Trow – added $20.8
MMM – added $20.5
Wmt – $19.6
JPM -$ 17.6
IBM – $26
GE – $27.6
F – $12
DOV – $16.8
CAT – $30.8
PG – $26.5
COF – $16.5
Total 1- year dividend forward: $261.2