dennis mccain
  • Home
  • Investing
    • Dividend Kings
    • Div Aristocrats
    • Div Champions
    • Business Dev Cos
    • Monthly Dividends
  • Options
    • Weekly Options

Investing

Ideas and Strategies on Investing.

Previous Articles

Investing in the Trend

2/7/2016

0 Comments

 
Picture
Sometimes being a Dividend Growth Investor is the hardest job in town. That's because DGIs spend most of their time researching companies to find those unique companies that consistently increase their revenues, earnings and dividends over an extended period of time only to buy them at the wrong time and they go down in price. That's what has happened to a lot of dividend growth companies over the last year or so. And while it's always nice to see my dividends increasing each year, it's also disheartening to see the overall value of my portfolio dropping. 

In some cases even reinvesting the dividends back into the stock can't keep the value of my accounts from falling. That's where selling options come into my strategies. Selling options can be a great way to increase the amount of money coming into my accounts on a monthly or weekly basis. And just like dividends, I use the option income to buy additional stock. 

But I'm always looking for ways to augment the dividend and option income. One additional tactic I use is leveraged directional ETFs. They're a very special brand of ETFs. My favorites are the 3X ETFs. Like all other ETFs, there are many leveraged ETFs that cover just about any segment of the investing universe. I primarily use just four ETFs, although I'll use any ETF that fit my needs. The four I use most are the SPXL, SPXS, UDOW and SDOW. These mimic the SPX and the DOW while moving three times faster than the averages, and therein lies the benefits of leverage. 

There's not much fundamental analysis going on when you use these derivatives. They're really only understood by investors who understand technical analysis. They're also not long term investments. I've found them to be most successful when used for a period of one week or less, but I imagine they could be successfully used for longer periods. For me they're pretty lucrative but I would have never tried them if I hadn't already had a good foundation in options trading and technical analysis.  

During tough periods like we've seen recently in the markets where stock prices continue to deteriorate from the inside out, it's nice to be able to generate income simply by identifying the direction of the overall market. By buying and selling leveraged ETFs I generate funds to buy additional solid dividend growing companies. And if my timing's not exactly perfect when I'm buying those individual companies, I can at least sleep better at night knowing that my overall portfolio is growing. Despite the economy.


Picture
0 Comments



Leave a Reply.

    Print Friendly Version of this pagePrint Get a PDF version of this webpagePDF

    Picture

    Author

    I am an Individual Investor with specific interest in long term growth and then enhancing my returns with income from dividends and derivatives. I don't recommend stocks to anyone (it's a good way to lose friends) and no one reading this should misinterpret my blog as a recommendation for any type of investment. I am writing this solely for myself and my kids.


    RSS Feed


    Picture
    Top 100 Blogs for Dividend Investors

    Picture
    Follow Me on StockTwits!



    Dividend Growth Stocks
    Dividend Growth Investor


    Picture
    I'm on Seeking Alpha too!

    Archives

    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013


    ADDITIONAL RESOURCES:
    4 Month INDU Chart
    Dividend Ex-Dates
    Bidness Etc
    SharpCharts Voyeur
    StockCharts.com

    FINVIZ
    Seeking Alpha
    BDC Reporter
    Roadmap2Retire
    DivHut
    Dividend Growth Investor

    Dividend Yield

    Stock Market Mentor
    Chart Swing Trader
    Dividend Announcements
    IBD TV
    Stocks to Watch Today
    Dividend Detective

    DISCLAIMER
     I am not a licensed investment adviser, and I am not providing investment advise for you on this site. Please consult with an investment professional before you invest your money. Any opinion expressed here should not be treated as investment advice. I am not liable for any losses suffered by any party because of data or information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value.

    Picture
Powered by Create your own unique website with customizable templates.