As a dividend investor, how do you decide when to add on to your favorite stock?

Depends on how concentrated am I on the stock, if the percentage i own as part of my networth is still low, i dont mind buying

If I am already invested in the stock, I would just wait for the price to at least drop back to my average purchase price before investing more, or for the dividend yield to be nearer its 3 or 5 year historic high (meaning the price has dropped recently)

If I am not invested, I would initiate a position, sizing it appropriately, but hold on to a warchest in order to add positions later if the price drops.

Due to the brokerage cost (if we're talking about the Singapore market), $1000/mth isn't really going to cut it. Your transactional costs would be around 2.5% of your purchase value. I prefer to buy in with a decent contract value.

Both strategies will be valid only if I am certain that this is the stock that I would like to invest in (i.e, done my homework)

Its been 9 months since your question, and the US market had once again rebounded from its end Dec crash to register even record highs, even as trade war tensions have not been tempered down. Meantime, dividend kings, aristocrats keep increasing their dividend payout

So i guess DCA would be good for you, if you have no time nor effort to monitor and deploy the war chest

Hi Kel Vin,

doenst matter whether you are growth or dividend investor, it is very important to only invest in good and undervalue companies.

if you invest in a good company at an overvalue price, it is just a good company, but bad investment.

personally, for dividends i focus on dividend yield. basically the dividend per share divide by share price. how much am i getting back for my investment. and i would like to have 7%. if not, i will skip/wait for other opportunities.​​​