Investing All the Time - 2026 Week #4

Investing All the Time - 2026 Week #4

• Dollar Cost Averaging (DCA) Works
• Dividend Stocks - 4, 12 or 52 week purchase
• Dividend Stocks "CONS"
• Option Trading - Premium

Dollar Cost Averaging (DCA) Works

When markets are red or when/if we enter a "recession", many investors sell or move into a CASH position.

What has been a proven method is using Dollar Cost Averaging (DCA). DCA is "buying the dip". A 401K plan typically buys 24 or 26 times a year based on your pay frequency. That is often more than a typical retail investor "attempting to time the market". A 401K plan used over 30 years will have periods when you are buying the DIP and buying the PEAK. But those PEAKS in 10 years look more like the valley (the dips).

Dividend Stocks - 4, 12, or 52 week purchase

Dividend stocks that pay a dividend also have a "built-in" buy-the-dip feature based on the dividend. Most dividend stocks pay quarterly (4), monthly (12) or even weekly (52).

I have a combination of all the payout frequencies. It is fairly common that some months will have more dividends than other months, unless all your dividends are on a MONTHLY cycle.

Dividend Stocks "CONS"

If you are under 50, picking dividend-paying stocks/etf might not be the best move. You are better off using SP500 or QQQ ETF. In your 50+, you can add dividends (including using "BOND" in the traditional stock/bond allocation).

Dividend stocks in general will underperform the MARKET. There are a few exceptions when picking a dividend growth stock like Visa (V) or those on this list:

The reality is that most people will not pick or hold the winner long enough. This is why we recommend using a HIGH dividend ETF.

Option Trading - Premium

The beauty of option trading is that there are many ways to structure the bet. Most people can use the Covered call method to make 4-6% a year without adding much more risk. In fact, you can use options to "reduce" risk by hedging or taking a protective put to lock in your gains.

Option trading can be used for weekly, monthly, or quarterly income. The trades can be adjusted if needed to add risk or "rolled" forward.

Option trading can be done with the existing assets in your account (meaning no need for new CAPITAL). You can do this if you are unemployed, not working, or

This with the combination of a dividend, can be a powerful 1-2 punch.

Have a profitable day!