Home
>
Stocks & Mutual Fund
>
Investing in the Stock Market - When To!

Investing in the Stock Market - When To!

Is really not as important as to how you invest in the stock market. And how you invest in the stock market should take into consideration what goals you are setting for that stock market investment.

For example, are you investing for capital appreciation or for income through dividend paying stocks? Or is the investment in the stock market for the combination of both capital appreciation and dividend income?

Are you investing through a Mutual fund(s) or selecting your own individual stocks?

Do you invest with a lump-sum dollar amount or dollar-cost average into your stock or Mutual fund positions (buying the same stock or Mutual fund at different prices over the years)?

Is your investment dollar spread too thin and are all of those dollars working for your ROI (return on investment)?

Do you pay commission fees to purchase a stock?

Do you pay load fees in your Mutual fund(s)? How much does your Mutual fund(s) charge you for management, operating and marketing fees (they are called 'hidden fees')?

'How' you invest in the stock market is more important than 'when' you invest in the stock market and 'how' you invest will determine your ROI.

When you invest in the stock market is after you devise a how-to plan that takes into consideration all of the factors above. Quite frankly, every cent of your investor dollar should benefit you and your family and no one else.

It is my opinion that all stock purchases should be made without commission fees (which is possible). That the investment in all stocks should be a long-term investment, and that every stock purchased should have a history of raising their dividend every year. And all dividends should be reinvested back into the company's shares (also commission free), until retirement.

By purchasing those companies that have a long-term history of raising their dividend each year (for example, Comerica ? 35 years, Proctor and Gamble ? 47 years, BB&T ? 32 years, GE ? 28 years, Atmos Energy - 17 years (they also provide a 3% discount on all shares purchased through dividend reinvestments), the 'HOW' you invest becomes automatic- you dollar-cost average into your holdings through the dividends provided by the companies every quarter.

The dividend is the one factor a company cannot 'fudge'. The money has to be there to pay the shareholder. If a company can raise their dividend every year, the company MUST be doing something right! When a company has a long history of raising their dividend every year you in a sense eliminate risk, since a lower stock price for that company just means a higher dividend yield. If, for example, a stock purchased at $50.00 a share drops to $36.00 a share, the income provided by the dividend income accelerates, and your dividend reinvestment provides you a better dividend 'bang for your buck'.

There have been many up and downs in the stock market these past 47 years (I know, I've been in almost 40 of them) ? yet Proctor and Gamble has never failed to raise their dividend during those past 47 years.

Below is an example of two types of investors that have $10,000 to invest in the stock market. One is a lump-sum investor, the other a dollar-cost averaging investor. One investor doesn't care about dividends, the dollar-cost averaging investor does.

Each investor took a different 'HOW' to invest and both investors had the same 'WHEN' when they invested. Let's say they invested at the same time, each stock purchased at $50 dollars a share and every quarter the stock dropped $2.00 a share, till the stocks hit a bottom of $36.00, and then recovers back to $50.00.

The lump-sum investor bought the fictitious company ABC, which does not pay a dividend, and the dollar-cost averaging investor purchased the fictitious company XYZ, which pays a quarterly dividend of 50 cents a share (a 4.0% yearly dividend yield), and the company had a history of raising their dividend every March for the past 41 consecutive years. Both purchases were made in January.

The lump sum investor bought 200 shares of ABC at $50.00 a share, watched the stock drop to $36.00, then recover back to $50.00 and when all was said and done ended up right where he started with 200 shares of ABC worth $10,000.

The dollar-cost averaging investor purchased 100 shares of XYZ in January for $5,000.00, (the stock paying a quarterly 50 cent a share dividend for a 4.0 percent yearly dividend yield), and purchased $1,000.00 worth of more shares every quarter for the next 5 quarters. Each quarter the dividend from the company was also reinvested into more shares of stock. Each March the company raised its dividend 2 cents a share, marking 45 consecutive years of rising dividends. All purchases were commission free.

January, 100 shares of XYZ @ 50.00 a share = $5,000

Date: Stock Price: Div. Purchases: Share Purchases:

March $48.00 @.52 = 1.083 $1,000 = 20.83 shares
June $46.00 @.52 = 1.378 $1,000 = 21.74 shares
Sept $44.00 @.52 = 1.714 $1,000 = 22.72 shares
Dec. $42.00 @.52 = 2.098 $1,000 = 23.81 shares
March $40.00 @.54 = 2.098 $1,000 = 25.00 shares
June $38.00 @.54 = 2.637 - 0 -
Sept $36.00 @.54 = 3.169 - 0 -
Dec. $38.00 @.54 = 3.393 - 0 -
March $40.00 @.56 = 3.260 - 0 -
June $42.00 @.56 = 3.194 - 0 -
Sept $44.00 @.56 = 3.045 - 0 -
Dec. $48.00 @.56 = 2.827 - 0 -
March $50.00 @.58 = 2.843 - 0 -

The dollar-cost averaging investor now owns 247.953 shares of XYZ. The value at $50.00 a share = $12,397.65.

So, the lump-sum investor ends up right where he started, 200 shares of ABC worth $10,000, and the dollar-cost averaging investor ends up owning 247.953 shares of XYZ worth $12,397.65, along with the dividend income generated from owning those shares. Both had the same 'when' when they invested.

The dividend yield at 58 cents a quarter (.58 divided by $50.00 x 4 x 100 =), a 4.64% yearly dividend yield. Every quarter every dividend received from the company was higher than the previous dividend, no matter what the stock price was at the end of the quarter.

The dollar-cost averaging investor is receiving a dividend for the next quarter from XYZ (no matter what the stock price happens to be) of .58 X 247.953 shares = $143.81, and the next quarter (and every quarter thereafter) the dividend would be even higher if the company, at least, maintained their dividend.

If XYZ repeated the same performance history ($50.00 down to $36.00, back up to $50.00) for the next 3 years, and ABC did the same - the HOW you invest in the stock market makes all the difference in the world.

---

You have permission to this article either electronically or in print as long as the author bylines are included, with a live link, and the article is not changed in any way, (typos excluded). Please provide a courtesy e-mail to: charles@thestockopolyplan.com telling where the article was published.

Charles M. O'Melia is an individual investor with almost 40 years of experience and passion for the stock market. Author of the book 'The Stockopoly Plan', published by American-Book Publishing. For more excerpts from The Stockopoly Plan, please visit http://www.thestockopolyplan.com

best cleaning company Highland Park ..

In The News:

MIT develops needle-free glucose monitor using light technology. Revolutionary device could replace painful finger pricks for diabetes management.

The ClickFix campaign disguises malware as legitimate Windows updates, using steganography to hide shellcode in PNG files and bypass security detection systems.

Researchers from Osaka Metropolitan University designed a 21-foot dome that combines aquaculture and hydroponics to create a self-sustaining urban food system.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

ChatGPT data breach exposes personal info of users through partner Mixpanel. OpenAI confirms names, emails compromised in security incident.

Android rolls out Emergency Live Video for 911 calls, letting dispatchers see real-time scenes during emergencies. Great for holiday travel safety.

Malicious Chrome and Edge extensions collected browsing history, keystrokes and personal data from millions of users before Google and Microsoft removed them.

Google's new Call Reason feature lets Android users mark calls as urgent before dialing, displaying an urgent label to recipients using Phone by Google app.

Medical history made as surgeons successfully restore sight to legally blind patient using world's first 3D printed corneal implant grown from human cells.

Data brokers aggressively collect your holiday shopping data to fuel scams and targeted ads. Learn how to delete your digital profile before 2025 starts.

Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.

Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.

Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Xpeng's humanoid robot moves so realistically that crowds believed it was fake, marking a major advancement in robotics technology ahead of 2026 commercial launch.

Investing in the Stock Market - When To!

Stocks & Mutual Fund