Everyone uses probably the same templates from online to using dividend discount models or discounted cash flows. But when you make those assumptions, you get anchored to a price. So for me, it is not so much about the price anchoring. It's more like if, for instance, the share price is going up and they are even, the free cashflows even growing less than I estimated in that for a high growth company. It's for me just not worth buying. And then you also need to consider will they continue hiking their dividends with this fast if you take a low yield.
In today's episode, we will discuss why averaging up is so hard for us and how we try to mitigate this so that we don't fall victim to this psychology.
Besides that, we will be sharing our news of the week, lots of dividend hikes, and a portfolio review and we will answer several of your questions.
Thanks for listening and we hope that you enjoy today's dividend talk episode 😍
Google Tickers mentioned in today's show:
- News of the week: $AMS:AD, $EPA:SU
- Dividend Hikes: $SWX:NESN, $AMS:NN, $LON:RELX, $EPA:TEP, $AMS:VPK, $KO, $SWH, $AMS:HEIA, $O, $FIS