The Writer’s Coin

This is something I’ve thought about for a long time but haven’t put into action in my portfolio. As the looming recession gathers steam, it’s an even better time to get into some defensive positions that will hold strong.

I’ve always been a fan of dividends, ever since I got my first check for like $400 from a privately held company I was like “This is great! If only I had more stock, I would get an even larger check.”

Of course, there’s more to it than that, and the smart thing to do is to reinvest the dividend right away, but this is kind of a unique case. Besides the revenue from those dividends is paying for my Roth IRA so that’s a good thing.

I almost started buying into stocks like Citigroup (C) and Procter and Gamble (PG) until I realized that I already own these companies via Berkshire Hathaway and the various index funds I own. So I thought it kind of redundant. But with the market tanking lately and skittish investors all over the place, there may be some great opportunities not only for cheap stocks but for cheap, revenue-building stocks.

So I’m hitting the books so that when opportunity strikes I won’t be scrambling to figure out what I’ll do.

Tags: dividend stocks