2 Set and Forget High-Yield Stocks with a Long History of Raising Dividends


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2 Set and Forget High-Yield Stocks with a Long History of Raising Dividends

ACCELERATING DIVIDENDSHIGH-YIELD INVESTINGREAL ESTATE INVESTMENT TRUSTS (REITS)
 

Fear of Missing Out (FOMO) has become a psychological phenomenon mostly affecting younger generations. However, FOMO has become a driving force for many investors, and it is not a plan for long term success. You can save yourself a lot of mental anguish and investment losses by sticking with a fundamentals driven dividend focused investment strategy.

Here is one definition of FOMO: ‘‘the uneasy and sometimes all-consuming feeling that you’re missing out – that your peers are doing, in the know about, or in possession of more or something better than you’’. For younger folks its this feeling that keeps them glued to their phones, constantly checking on their social media accounts. For investors, FOMO can be spotted by the habits of having one of the financial news networks running on a TV most of the day and by constantly checking brokerage account values and individual stock prices.

One sign I see from individual investors that they are in the clutches of FOMO is that each time one of their stocks drops by a few percent they must know the reason for the decline. The belief is that with a reason they will then know whether to keep the shares or sell. Since most stock market movement is not driven by actual news from the individual companies, these investors can let their fears take over and sell the stock positions for losses. The financial news puts out a lot of information that tries to explain why stock prices are moving. The explanations are just a way after the fact to try to explain the random movement of share prices in the short term. To be a successful long-term investor, it is a better practice to mostly or completely ignore the day to day news items that “experts” claim are moving the market.

To be a successful investor, instead of a short-term trader, you need to have a strategy based on the underlying fundamental financials of the companies in which you buy and own shares. There are different strategies to choose from including growth stocks where the companies are growing faster than the economy, value stocks where the market does not see the value of a company’s assets, or bets on future technologies with stocks such as Tesla or drug stock IPOs.

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