Dividends in the countries area are basically determined by newsworthiness; the more mentions a country gets the more dividends it gets. Savvy investors dash for those countries that are expected to be in the news; Afghanistan, Iraq and Iran are examples of those. For different reasons, so are Denmark (Copenhagen), Iceland (credit crunch) and Ireland (ditto). But Greece and Latvia, for example, looked underpriced to me, given the increasingly evident financial problems (and therefore newsworthiness) those countries have. I expect to see them in the news for months. I snapped up Greece at 1.12 and I recon I’m sitting pretty at that price. Some news can’t be predicted – Jamaica hitting the news briefly for a plane crash for example. But some news can; I am reliably informed that there’s to be some sort of major sporting event in South Africa in 2010 but I managed to fill my boots with South African stocks for an average price of about 1.3 – an absolute steal, I suspect. South Africa’s value is bound to increase as 2010 unfolds and the dividend potential should make those a very sensible hold for a while. Unless you want to buy them off me at a substantial premium.
In short, I am now buying and selling far more regularly, using capital gains as part of my strategy, as well as dividends. For that purpose, I am not exhausting my entire credit line any more, but holding a little back to enable me to stock pick when I fancy, without having to sell stocks I’d sooner keep. Simples.
Next week, tip three, the final stream of my current strategy for success at ExtZy. Also, I shall give all three streams names, just for the craic.