Now your portfolio will start going up and
down be prepared not to panic.
You
have a food stock and utility. Your
stocks don’t do much as far as going up or down fast or far. If they go down then no big deal if there is
no bad news about the company, that means your dividend reinvest just buys more
stock the more stock the more dividend right?
If you stock goes up great then you win either way.
For
your third stock I like the Industrial sector.
This sector will rise and fall in price with the business cycle. So be aware that the stock you pick may drop
depending on when in the business cycle you buy it. What you have to do is make sure that you
don’t have a Washington Mutual or Kodak.
As long as the company isn’t busted and it is the business cycle your
dividends buy more stock.
I like Eaton
Corp. (ETN) but you could still pick many other industrials. Emerson Electric Company (EMR), Caterpillar
Inc. (CAT) and many more too many to list.
Pick on everyone likes or at least doesn’t say anything bad about and
let your dividends start working. Watch
the company to make sure it doesn’t turn into a dog.
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