On Friday, the markets went crazy over “Brexit”. Almost every dividend stock imaginable was bleeding red and lots of panic was induced. This is what makes the U.S. stock market so volatile. It can swing wildly on any news, even when it does not nationally affect the United States markets. However, volatility is not a bad thing, unless one lives on portfolio drawdown’s. Most DGI investors saw this as an opportunity to buy quality companies at discounted share prices. That is exactly what I did.
On June 24, 2016, I increased my existing position in MetLife (MET) by purchasing 13 shares at $40.16/share, plus $4.95 commission, for a total basis of $527.03.
Warren Buffet stated, “I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful…”
That is exactly what I did as MetLife dropped over 10% in one day. The drop was unwarranted as there was hardly any negative news as a catalyst (outside of Brexit) for the drastic drop. I took the opportunity to average down on a quality company and increase our future dividend income.
I initially purchased MetLife back in January of this year. MetLife is still a FCF machine with a well-covered dividend and steady revenues. Until any of that changes, I will continue to add on any drops in share price.
MetLife pays a quarterly dividend of $0.40 per share. The purchase of 13 shares will add $20.80 to the TOL’s annual dividend income amount.
I do believe Brexit and its effects on the markets will be a distant memory in the very near future and the market will be back to business as normal. This is what happens…ALL…THE…TIME! News of doom and gloom and financial destruction hit, the market overreacts, and DGI investors swoop in and snatch up shares at great prices. WASH, RINSE, REPEAT. I will continue to build up capital as I wait on the next piece of “news”!