When I purchase stocks, I try to ensure that the dividend yield is at least 6%.
How much risk threshold am I looking at? Is my current portfolio aligned to my risk tolerance?
If I were to say that I feel absolutely nothing to the current market and whistling everywhere I go, I am lying!
The market is indeed worrying!
However, I am prepared to reduce my expectations of dividend yield from my entire portfolio to 3% PA.
This means that from my $300,000 portfolio, I expect my total yearly cashflow to go as low as $9,000 or $750 monthly.
The initial target was $18,000 or $1,500 monthly.
After reducing my expectations, I heave a sigh of relief. I am sure $9,000 a year is still decent dividend payout, compared to leaving money in the bank.
If the market does recover, I will be looking at 10% gains or more.
Meanwhile, I will continue to invest my dividends and free cash back into the market whenever possible.
It is time to avoid timing the market!
I will only subscribe to one belief now: 手中有股心中无股！ (Stocks at hand but stockless at heart!)