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Market Cap Movers in 2023
DISCLAIMER - I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice. These are my findings and can hopefully help you to make informed decisions on investing. Consult a Broker or Lawyer before making any investment.
I read an interesting article last week on Market Moving Trends. According to their research, 7 stocks in 2023 have been responsible for 73% of the Market Gains in 2023.
I try to stay with tried and proven Dividend Growth Stocks that give at least a 4% dividend return and potential upside gains in price of around 5% or more. However, I could not ignore the fact that just 7 stocks had such movement in them in 2023.
According to Market Moving Trends, those stocks moving the most in first 10 months of 2023 are the following:
While these 7 may have had the most upside thus far in 2023, it does not mean it will continue. However, if any of us had been wise enough to buy a few shares of Microsoft in 1983 would have made us millionaires. Same could be said before Amazon or Apple took off the last few years.
I don’t have thousands of dollars to invest in speculative adventures, but I did decide to start buying $5 on each of these 7 stocks weekly in my wife's Fidelity Roth IRA over the upcoming year. I don’t expect huge gains on them all, but if just 3 of the 7 move up substantially, it could mean a good return on the investment. Fidelity allows you to purchase by the dollar during open Stock Market Hours. You can do it similarly on Schwab with their Stock Slices program. So for the next year, these will be my low-percentage speculative money purchases.
I have tried several ‘hot’ idea items over the years, and so far none have performed well. We will see if this is another wild goose chase. Never invest more than 5% of your investments in non-solid investments.
I believe that DGI investing is where you will consistently do well. These are Dividend Growth Stocks which all pay a dividend and still have some upside to grow. We have discussed dividend stocks in two previous articles
These lists zero in on stocks that may or may not be ideal DGI investing instruments, but many will. A Dividend growth stock will not only provide you dividends, but the company will continue to grow and the stock will appreciate in value. So if a stock pays a 6% dividend and in a year grows 8%, and the stock price rises matching that 8% growth (no guarantee of this… it may go up 7% or 12% depending on market psychology and the overall stock market). But if it does go up in value 8% and the stock pays a 6% dividend, you received a 14% growth in that one year.
So you are looking for high quality companies with an ability to continue to grow. With this and the compounding of interest and growth price (appreciation), this can really turn into a fine return. Since 2022, I have been putting over ½ of my investment money set aside for ETFs and Stocks into DGI investments.
Review those two lists on Dividend Aristocrats and Dividend Kings. They are different lists, and if a company is in both lists, it should be carefully considered as a potential DGI investment. If you continue to buy stocks all through the year with consistent investments, you will gain the average cost on the price through the year.
So consider all your investment options. REITs, BDCs, and Preferred Stocks should all be part of your investment portfolio. Growth Mutual funds are also good steady money in up markets.
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