Process of Research

[Aaron]

I'll let you know when I know. I am thinking that I am too lazy to do a lot of research so am formulating a plan to look at just dividends. Possible set a hurdle rate of 7%-8% yield before tax. I am also risk averse so will be looking mostly at property companies, power generators, Ports (if they ever come down out of the stratosphere), infrastructure (Chorus, Vector) etc. Mostly sectors with huge political risk.

That way I only need to research dividend history and maybe look at operating cashflow/dividends to see how many times the dividend is covered by earnings and hopefully how likely the dividend is to continue. That is in my head no actual steps taken as yet. Also will be implementing this after the next financial market meltdown and ideally at the peak of the next interest rate cycle.

I am finally giving up doing nothing waiting for a market crash. Janet Yellen was probably saying she can lower interest rates and make enough money available to keep things going for the rest of her life when she said she doesn't expect another financial crisis in our lifetime.

If I have a 7%-8% hurdle rate I think some property companies are getting close to that sort of yield and power companies are cracking that with special dividends (so much for electricity costs being high so they can reinvest in new generation. It is going to the shareholders as dividends. maybe national shouldn't of sold these).
What do people think of a simple strategy like this, not expecting huge gains but build up a steady income from shares. If a crash happens I will have to be happy that the yield is OK and maybe leverage up if >10% opportunities arise.

I am getting depressed doing nothing but will wait until January next year so I at least have a target date where I will need to start researching in earnest.

How I diversify will be an issue but probably set minimum and maximum amounts for company investments and maybe sector investments although that said industries described as "bond surrogates" appeal to me most.

I could do this or put everything into a chunk of land. The capital I have available for investing means I am limited. Small chunks in stocks or one big chunk in land. What sort of land would be best? rural land in the boondocks is all I could probably afford, or a small commercial building, or a rental house. None of these returning anywhere near 7%-8% that I can find locally in the North.

No leverage at this stage but maybe after a crash if I am not too scared and opportunities arise.

All opinions appreciated.