I'm Investing $50,000 In These Dividend-Paying Companies

Seeking AlphaDividend StrategyI'm Investing $50,000 In These Dividend-Paying CompaniesSep. 11, 2020 9:50 AM ET|| Includes: ADM, BMY, BNS, CAH, CVS, EIFZF, ESS, FRT, GD, INTC, MRK, O, OMC, ORCL, PNW, PRU, RGA, STOR, T, WBAby: Wolf ReportWolf Report Long Only, Value, Growth, Growth At Reasonable PriceSummaryWhen I posted my monthly update and noted my large increase in my cash position, from 4% to over 10%, some readers messaged/asked me how I intend to invest this.
While investing this cash will likely be a matter of some time, I have some clear notions as to how I would invest such an amount of capital.
I present to you my investment targets for part of this cash, weighted in terms of sectors, yields, risks, and other factors.
Investing in this fashion could increase an investor's average annual dividend by over $2,500.
Whenever a large amount of capital is received, I try to plan for its use pretty quickly. Capital can flow from a variety of sources. Some months during the year more than double my average monthly inflow of cash due to the high cyclicality of my dividend payouts (Europe being heavily weighted towards months 3, 4, and 5). At times, I may choose to pull a dividend from my company, or some work-related windfall may result in a higher-than-average availability of cash overall.
I try to put cash to work on a continual, weekly basis. At times of such an influx, I try to increase that continual investment rate in accordance with the availability.
Current Investment Appeal
Still, it would be wrong to say that the market as a whole today somehow presents an appealing sort of investment prospect.
With markets trading at a record high in the face of lower expected profits, we're seeing a general overvaluation quite unlike trends we've seen before. This makes the choice of individual investments more crucial than at any time in my investment "career". The danger of choosing overvalued or the "wrong" investments which could cause that... Read more