Frankly my dear, I don't give a dam. I have my own approach and I think I'm doing ok. I think the pic below pretty much illustrates that. Macro factors are important obviously. but for me, it's more about emotion. I buy because nobody else seems to get it. $NextEra Energy Partners LP(NEP)$ It's a dividend stock, it's crashed seriously and as a result it's dividend is now over 21%, that's insane! Why is it down so much? Well Q3 was very bad, and there's a chance it could cut its dividend in the future. Emotionally dividend investors go crazy if they think their dividend mite be cut, and sell off big time. And that's exactly what's happening.
But I don't think it will be cut. Since the company announced they mite not be able to increase their dividend going forward due to high interest rates, well interest rates have come down 75 basis points. And they have hiked their dividend the last 3 quarters.
So will I bag hold for a couple of years, earning 21% in dividends... yup. Will I bag hold if the dividend is cut to 10%, yup. Why? Well eventually all the scaredy-cats will exit, and new investors will come in and the price will pop. And in the meantime I have a dividend engine that's putting cash into my account every quarter.
Will I buy more, yes. It's in renewable energy, and backed by $NextEra(NEE)$. To be in the top 1% of traders on tiger like me, you need balls. Understand the stocks you invest in better than your wiffie, make the call, if you screw up, understand why and maybe don't do that again.
Comments
Congratulations on achieving over 500% YTD! Looking forward to you sharing your winning trades more in the community! đđ°đ
Thank you for sharing your unique perspective! đą Look forward to seeing how this bold strategy pans out! Happy trading in tiger community!