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Which Dividend Stocks Will I Buy in November
For almost five years, I have followed my strategy and invested in dividend stocks twice a month. You will receive your salary on November 8, which means it is time to start shopping. In this article, I will tell you what I should invest in!
The overall mood on the market is still pessimistic. Since May of this year, the Moscow Exchange index has fallen by -25% since the beginning of the correction. Over the past 10 years, our market has fallen deeper only twice.
As long as both of these factors have a negative impact on the market, sustainable growth should not be expected.
But tomorrow is the start of the US presidential election. With Donald Trump currently advocating for an end to the conflict in Ukraine, his victory in the election could trigger a change in investor sentiment and send the market higher.
As for the key interest rates of the Central Bank, everything is more complicated here! According to the bank's own forecasts, there is no point in expecting a sharp reduction in the interest rate. It will remain high (17-20%) until at least 2025. This means that the market is unlikely to move to long-term growth next year! Perhaps the market has already reached a local minimum and will continue to move within the 2500-3500p channel, expecting a strong positive growth driver in the form of the completion of the SVO or a reduction in rates by the central bank.
However, the current situation gives long-term investors an opportunity to buy falling stocks at a good price, so I plan to take advantage of this opportunity!
The screenshot shows the data from the service where I track my investments. Right now, my portfolio has lost -76,000 rubles. However, these are variable losses, and as soon as the market starts to grow, my portfolio will show a profit. In addition, the main goal of my investing is to create a passive income stream. My “dividend salary” is growing and is now 36,700 rubles per month. It increases every time you buy shares. I am not affected by income fluctuations or changes in the value of my portfolio. The only thing I really care about is the number of dividend shares! So I continue to buy more shares and increase my passive income.
"What should I invest in?" - This question worries many investors, but not me! I have a clear strategy and I always know which stocks to buy.
My strategy is simple and clear. It is based on statistical probability! When choosing stocks to buy, I focus on the data on future dividends of my portfolio. Statistics show that stocks start to grow several months before dividend payments. Dividend payments act as a positive factor for stock price growth, and investors start buying stocks in advance even before the official announcement of the payment in anticipation of future dividends.
So, you want to invest in securities that have a few months left before they pay dividends.
What is worth investing in in November?
We have two "generous" dividend months ahead: December and January. In total, they can bring me dividends of about 100,000 rubles.
The following companies may pay dividends during these months:
In essence, the shopping list is ready; all that remains is to select from it the most attractive and promising securities with the most generous dividends.
In the end, I will be buying:
All these stocks I have chosen have one thing in common - they have negative net debt and a reserve of cash in their accounts! This is very important now, with a high key rate of 21%, I try to avoid companies with debt. In addition, all 6 issuers have profitable businesses and they pay good dividends.
The shopping list is ready. On November 8, I plan to invest about 50,000 rubles in these shares. After the purchases, I will definitely show you how my portfolio will change and how much my "dividend salary" will grow!
Friends, thank you for your attention to my articles! I look forward to your comments.