Tuesday, January 16, 2018

I Hit My Dividend Crossover Point

I wanted to share my exciting news with you today. I was going through my investments, and calculating my forward income and net worth numbers. After a little bit of adding things up, I came to the realization that I have exceeded my dividend crossover point in 2017. In other words, my forward dividend income from my taxable and tax – deferred accounts is set to meet or exceed my expenses.

I do not make monthly or quarterly updates like other blogs. The last update was probably in January of last year.  Though a lot of readers liked this update from 2015. I wanted to share this with you, and illustrate that aggressive savings coupled with patient dividend growth investing works.

Long-term readers know that this is a substantial increase from my position a little over ten years ago. Back when I graduated college in 2007, I had only a couple of thousand dollars to my name.

I was extremely lucky that my parents paid for my first year of college. This is why I cannot say that all accomplishment is entirely mine, since I had a large dose of initial help. But I was also lucky that I worked several jobs during school and summer breaks in order to pay for my college and living expenses for three subsequent years. Therefore, I had zero dollars in debt when I graduated.

After finding a job in 2007, I steadily saved a large portion of my paycheck. I had no idea how to invest my money however. The only no-brainer thing I knew how to do was to put enough in a 401 (k) to get the company match, and enough to get to the stock ownership plan. The stock ownership plan offered a discount on company stock, which could be sold right away for an almost guaranteed profit.


Friday, January 12, 2018

Attractively Valued Dividend Contenders To Consider

Earlier this week, I shared with you a list of 24 dividend champions, which I believed to be worthy for further research. These companies are attractively valued, have each managed to grow distributions for at least a quarter of a century. In addition, their dividends are secure, being raised by dependable earnings growth.

Today, I am going to delve into the list of dividend contenders. A dividend contender is a company, which has managed to grow dividends for at least a decade (but far less than 25 years). There are currently 220 dividend contenders. If you add in the list of dividend champions, we have 335 companies in the US, which have managed to grow dividends every single year for at least a decade.

This is a solid starting point for any serious dividend investor, who is looking for a group of quality companies for further research.

To create the list I shared with you today, I went through the following process:

1) Obtained the list of dividend contenders from dripinvesting.org
2) Dump it into a Yahoo! Finance custom portfolio that I downloaded to excel.
3) Remove companies where trailing P/E ratio was below 20
4) Removed companies where the dividend payout ratio was above 60%
5) Added information for the 5 and 10 year annual dividend growth rates

As a result, I came up with 65 dividend contenders for further research.

Continue Reading >>>

Thursday, January 11, 2018

Attractively Valued Dividend Contenders To Consider

Earlier this week, I shared with you a list of 24 dividend champions, which I believed to be worthy for further research. These companies are attractively valued, have each managed to grow distributions for at least a quarter of a century. In addition, their dividends are secure, being raised by dependable earnings growth.

Today, I am going to delve into the list of dividend contenders. A dividend contender is a company, which has managed to grow dividends for at least a decade (but far less than 25 years). There are currently 220 dividend contenders. If you add in the list of dividend champions, we have 335 companies in the US, which have managed to grow dividends every single year for at least a decade.

This is a solid starting point for any serious dividend investor, who is looking for a group of quality companies for further research.

To create the list I shared with you today, I went through the following process:

1) Obtained the list of dividend contenders from dripinvesting.org
2) Dump it into a Yahoo! Finance custom portfolio that I downloaded to excel.
3) Remove companies where trailing P/E ratio was above 20
4) Removed companies where the dividend payout ratio was above 60%
5) Added information for the 5 and 10 year annual dividend growth rates

As a result, I came up with 65 dividend contenders for further research.


Wednesday, January 10, 2018

Profiles of Successful Dividend Investors

We all invest in dividend stocks in order to achieve financial independence. I find it very motivating to read the stories of long-term dividend investors, who started from modest beginnings and turned into multi-millionaires after decades of patiently compounding their wealth.

Back in early 2017 I posted a summary including the stories of several millionaire dividend investors:

The Most Successful Dividend Investors of all time

Another inspirational story appeared a few months ago:

This Is How This Successful Dividend Investor Turned $1,000 Into $2 Million


Yesterday, I read the story of a retired British teacher, who left a blue chip portfolio worth $9.5 million to charity at the time of his passing away in 2017. His name was Grahame Pincock, and he passed away at 90, leaving a portfolio in a trust to spend for charitable causes fighting ill health. Mr Pincock, was a principal teacher of languages before retiring.

Monday, January 8, 2018

24 Dividend Stocks For 2018

I believe that the list of Dividend Champions, Contenders and Challengers is the most complete list of US dividend growth stocks available today. As part of my process, I screen the list of dividend champions regularly. I have a custom built portfolio in Yahoo! Finance, which includes all dividend champions. Using information from Yahoo Finance, Company Annual Reports and David Fish’s excellent site, I come up with all the data I need for my screening purposes.

In order to come up with a list of companies for further research, I used the following entry criteria:

1) A ten year minimum for annual dividend increases ( being a champion already helps in pre-qualifying this criteria)
2) Forward P/E ratio below 20
3) Dividend Payout Ratio below 60%
4) Companies that have managed to grow earnings per share over the past decade
5) Companies which have achieved a more than nominal dividend growth over the past decade

I applied those basic criteria on the Dividend Champions list, maintained by David Fish and came up with the following group of companies for further research:

Popular Posts