Thursday, January 19, 2017

Nine Dividend Investing Lessons Learned From Nine Years of Blogging

Today marks the ninth birthday of the Dividend Growth Investor blog. It is unreal that I have managed to keep this up for 9 years in a row. There have been more than 1,600 articles published during that time. I wanted to thank you all for reading along the way, through the ups and downs.

Today, I wanted to share nine lessons that I have learned about successful investing over the past nine years. Those were learned from personal experience, through my interactions with readers and through observations of other investors.

1) Diversification matters.

Diversification is the only free lunch out there. This means holding as little as 40 – 50 individual companies from as many sectors as possible. Diversifying over time helps build the discipline to allocate money in the best ideas every single month. By slowly building out a dividend machine over time, you will end up with a portfolio that is well diversified, since different companies and sectors are available at different points of each economic cycle. Having some allocation to fixed income in retirement could be helpful as well, though not as helpful in the accumulation phase.

Tuesday, January 17, 2017

My Goals for 2017 and after

Another year has passed here in dividend growth investing land. This was a year with a lot of changes for me. It is time to evaluate what happened, and see if we can learn anything from all of this.
Before I write things down, I want to let you know that I actually try to focus my efforts on building systems rather than goals. In other words, I believe that focusing my energy on those five items within my control will ultimately lead to me to my ultimate goal of living off dividends in retirement:

1) Growing my income
2) Saving as much as possible
3) Investing wisely, without overpaying for investments
4) Keeping investment and tax costs low
5) Remaining patient ( not chasing yield, not overpaying, not churning my portfolio)

I believe that by focusing too much on earning a certain dividend income in a certain year I am pressuring myself to do things for the sake of doing things. This is an example of short-term thinking, which I try to discourage on this blog. I am all for long-term dividend investing, not chasing short term targets. I would rather pursue only good opportunities that would result in a lifetime of sustainable dividend income instead.

Thursday, January 12, 2017

Medtronic (MDT) Dividend Stock Analysis

Medtronic, Inc. (MDT) manufactures and sells device-based medical therapies worldwide. This dividend champion has paid dividends since 1977 and increased them for 39 years in a row.

The company’s last dividend increase was in June 2016 when the Board of Directors approved a 13.10% increase to 43 cents/share. The company’s largest competitors include Baxter (BAX), Becton Dickinson (BDX) and St Jude Medical (STJ).

Over the past decade this dividend growth stock has delivered an annualized total return of 5% to its shareholders.

Tuesday, January 10, 2017

Two Wide Moat Dividend Stocks to Consider on Dips

I like to invest in quality companies, with an established track record of dividend increases. I want to acquire these quality companies at an attractive entry price, and then see earnings per share, dividends per share and intrinsic values grow over time.

The beauty of quality companies is that you need to get one decision right – that is the ability to identify their business model, and then buy those companies in the first place without overpaying for them.

I do not want to worry about buying at a low price, and then selling at a high price. I want to make one decision, and then let these quality companies do the heavy lifting for me. My favorite holding period is forever. While some may fail, I know that by building a diversified portfolio of dividend growth stocks, I will do just fine over time.

Thursday, January 5, 2017

Three Of My Favorite Dividend Stocks For 2017

This guest post has been written by Mike McNeil, passionate investor, founder of Dividend Stocks Rock and author of The Dividend Guy Blog.

In the beginning of this New Year, many investors review their portfolios. We all hope for a good year on the market and, most importantly, steady dividend growth increase among our portfolio. I selected three companies I think will perform well in 2017 and will increase their dividend payouts.

3M (MMM)

Business model:
3M (MMM) produces products like Scotch tape, projector systems, Post-it notes, Tartan track, and Thinsulate. This is a conglomerate that produces products for many industries and for both personal and business use, and their manufacturing, research, and sales offices are all over the world.

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