Is long term investment a good strategy ? Companies with large cap and old players are preferred. Normally long term investment is tied to good yield/dividends. For example people would would have bought stocks JCP , Sears etc during 2006-2007 time frame should have been wiped out by now. During those times these companies were giving high dividends and no one would have predicted anything can go wrong with them. I am considering to add alteria (NYSE: MO) to my dividend portfolio. But stock has been in downward trend from 2017. Lastly I prefer individual stocks over indexes as indexes have < 2% dividend yield. Eg. my portfolio as ATT , DAL which I bought in Corona downturn and dividend should be 6-7%. What do you think ? Is long term investment risky ? Better to always sell on profits ?
DAL suspended dividend
share news article please ?
agreed i already read firetobiz. They emphasize on indexes but indexes do not yield > 5 % dividend. Normally i found it is in range of ~2%. So i want to build my own portfolio which can give 5-10% yield. The only concern is, i do not want to get into situation what investors in JCP, Sears went into. What is the way around it ? Every quarter have a thorough look at earnings report and if stock of individual company in my portfolio crash > 30% then consider selling. I am considering company wide problem not global like corona where every company is in water.
Indexes yield 7%-10% depending on your risk tolerance. Index funds, like many stock can increase in value by dividends and appreciation. Read the article again.
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It's not that long term investment is bad.... But times change and those companies aren't nimble enough to change. You want a long term investment? It has to stand the test of time. Clorox turned 100 yrs old in 2013 because you will always need to disinfect and they adapted to the times by diversifying their portfolio. Yeah 100 years and there are even older companies.
over 100 years as it was established in 1902, JCP survived dotcom, great depression, housing bubble but now it is trading below 0.5 USD