Oct 21 2016

My Latest Buy: AWP

Again, this will be a short post as there’s not too much to say without repeating myself. Yes, more AWP!! October marks three straight months of AWP buys. No, I’m not going nuts loading up on AWP. Well, okay I am loading up on AWP but only enough to bring its weight up to 5-6% of my total dividend income. Now that I’m there, I won’t be buying into AWP for a long time.

For October, I bought 180 additional shares of AWP at $5.48 per share, bringing my total AWP shares to 820. This new buy adds $9.00 per month to my projected monthly dividend income, raising it to $755.03. Nice!

Wait. What’s that? $755.03?! Whoaaa! I just reached and exceeded my 2016 goal of having a projected monthly dividend income of $750.00! And with approximately 9 weeks left in 2016, that’s 9 weeks of wiggle room to do other things.

I’m not sure how to proceed during the final weeks of the year. There’s a growing concern among investors that another recession is right around the corner, as the bull market has had a long run and it can’t last forever. One blogger, Tawcan, made a very insightful post about this situation. Tawcan said than an investor has only four options:

  1. Do nothing, continue buying stocks periodically
  2. Liquidate all holdings and start holding cash
  3. Liquidate some holdings and start buying other assets like gold and silver
  4. Start holding on a larger reserve of cash and wait for an opportunity

One doesn’t have to choose just one option, and can combine two or more options. I’m leaning towards doing #1 and #4. But I know I have some really high risk positions, so maybe #3 should be applied to my riskiest stocks to mitigate the damage to dividend income when the market has its inevitable correction.

Decisions, decisions…

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