Nov 5, 2021

Cory Diary : Dividend Strategy doing 4x100 Relay

Compounding dividend by holding stocks long term is kind of straight forward method of investment. However, if one is to change dividend stocks midway while continue to compound, there is potential one can go faster due to market timing opportunities.

An example will be like 4x100m Runners passing baton. There is not much delay other than transaction fees. In fact new fresher runner can run faster speeding up the whole process of compounding. By locking oneself to a single runner to complete the entire compounding journey, matter of time it may slowed down as one will get tired running the entire 400m journey.

The next question will be when should we change runner ?

DPU expected to slow down in next coming years, CEO change not to our liking, Industry shifts, Price Actions / Market Dynamics, Riskier leveraging, Weakening Sponsor, ....


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