Tell me if you see any holes in my theory here please...
What I did first was pick out 30 dividend paying stocks based on what I've read here and a few other places, I then built a model portfolio by taking 10% of the total amount I want to invest and buying however many shares I could of each of the 30 stocks. I then took the last 12 months of dividend payments for each individual stock, multiplied it by the number of shares I purchased thereby simulating what my dividend income would have been off of each stock had I owned it the past 12 months.
I then took the 10 highest performers to model my portfolio after...
I know it's looking back instead of looking forward, but it was an interesting calculation and I now have a much better idea of what I can expect from each stock and the total portfolio.
What I plan to do is to buy 25% of the total number of shares of each of the 10 stocks...every 2-3 weeks until I've got them all.
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Lance
1985 Monte Carlo SS Street Car
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