Have I got this right? Dividend related, opinion needed!
I bought 100 stocks of 3 different big cap Canadian companies (telecom, banking and utilities) each of which pays very good and stable dividend of close to 5.25% (based on the price I purchased them at in late March when the market had hit peak bottom)
I am in this for the long term, mainly for some steady dividend income.
Assuming no dividend slashing in the short term, I will be making close to $800 in annual dividend income from these 3 stocks. Not much, but it is a start and better than what I would get from putting my money in a saving account.
So my question really is, and assuming these companies don’t disappear overnight or slash their dividend significantly , should I just enjoy the quarterly dividend returns and not worry if these stock prices go down in the future? In other words, treat this like a dividend cash cow for years to come. If I get lucky and they double in price when things get back to normal in a few years, I could sell and make money. If not , I continue to enjoy the dividend returns. Win-Win.
For the record , I am up an average of 15% for the three stocks since I bought them back on March 23, although I was as high as 20% at one point and know could easily lose all my gains.