Saturday, April 12, 2014

Nine Reasons I Read Dividend Mantra Every Day

There are several sites I read daily, as part of my routine to check what other investors are doing with their money. Many of those include dividend investing sites, but I also look at sites covering general investment and investor psychology. One sites I have been following religiously since 2011 is Dividend Mantra, written by Jason Fieber. There are several reasons why I personally start my day with his site.

1) His stock analyses

He thoroughly analyses companies he buys, including qualitative and quantitative factors. I enjoy the fact that he tells readers about the story behind each company, and reasons why he purchased it. It is very interesting how different dividend investors with somewhat different approaches to analyzing companies end up with a very high overlap of quality dividend paying companies in their portfolios.

2) He earns a middle class salary,

This makes his efforts relevant to a large base of investors. This is a very powerful lesson, which shows that everyone can make it in investing, as long as they find the right strategy, save high portions of income consistently, and keep being persistent for long periods of time. Even if you start with a few hundred dollars a month using a no-cost broker like Loyal3, you can still amass a sizeable collection of dividend paying stocks over time.

3) He is frugal with money.

Jason writes about his monthly income and expenses, which include things as mundane as delivery pizza he ordered to buying and selling a scooter. I think that one of the largest contributors behind his accumulation of a six figure portfolio is due to his high savings rate. I am lucky to also have a very high savings rate as well, which is a definite plus, because it allows be to find enough capital to deploy every month, and kick start my dividend growth compounding. It is a site where frugality meets dividend growth investing.

4) He plans to retire early.

Jason tries to retire at the age of 40, which is a pretty lofty goal. He started his journey at the age of 28 – 29, which means that he expects to be financially free within a decade of saving and investing. Given the fact that he has shown the stamina to keep putting money in dividend paying companies on a consistent monthly schedule, I am more than confident that he will achieve his goal. As I had mentioned earlier, in order to determine whether you can retire early, you need to determine how much you are spending. The next step is determining how much you will spend in retirement, and work backwards to achieve this goal. The key inputs in your financial independence calculation include money you are putting every month to work, investment returns and time you allow your capital to compound.

5) We have very similar personalities and strategies

The one thing that I like about Jason is that we have a lot of things in common. I am fairly frugal, and I put money in dividend paying stocks, because I think this is the best strategy for someone like me who wants to live off an investment portfolio. I also plan on achieving financial independence early in life, in order to achieve something else with my life, other than enduring a 50 – 60 hour weekly grind at my job.

6) He is able to motivate himself and readers to keep the good fight

One of the reasons I like reading his site is the dose of motivation that puts things in perspective. I think that few people really stop to think about the true cost of buying a new car or a new TV every few years. Jason discusses why those might not be important for your true happiness, and how you only live life once. Therefore, you need to spend it in the way that is best for you, not how others are telling you to spend it. He is able to visualize his ideal retirement, and how it would free up his time from having to exchange his time for money.

7) He had all odds stacked against him, yet he still persevered through hard work to get where he is today

Actually, he has had it much more difficult than I have ever had it. Some of his stories are really scary for me to read, although it does make it even more telling how far ahead he has come. It is great how he had his awakening moment in his late 20s, that has truly provided the spark that will lead him to greatness. I guess it is at the moments of despair that the seeds of future success are planted.

8) His dream is built in real time

He is a dividend growth investor who is building his dream in real time. Unlike most other stories of persons who retired early a long time ago where you hear about them only after they have retired, you get to see Jason save and invest his money in quality dividend stocks every single month in almost real-time.

9) He is a celebrity

Jason has been interviewed by the USA Today, CNBC etc. He is a role model for many people who want to be able to live life on their own terms. I see him as a positive role model, whose story should be more widely followed than the other celebrity gossip people usually waste their time on. I would much rather read about his monthly income and expenses on the cover of People magazine or on E!, than anything about the Kardashians. I don’t read those magazines, but I know a lot of people do, and their views are shaped by these publications.

When I started my own site in 2008, I planned on posting my monthly income and expense, as well as how much I earn in dividend income, but I decided against it. I didn’t feel safe revealing everything about myself to the world, and still don’t. Kudos to him for doing what he is doing, and motivating people to take ownership of their financial lives.


23 comments:

  1. Nice. I have visited some of the other dividend investor blogs, but never came across Dividend Mantra. Just went through the last post which directed me to an earlier one... See ya later!

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    1. Hi Keith, please don't forget do come back here by Monday

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  2. I can add one more: the level of discussion that are built on the blogs' comments is rarely seen online. He built an awesome community around his site, and that has lots of value for the reader

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  3. Agreed. Jason is the guy! I also enjoy his posts a lot!!!

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  4. Couldn't agree with you more DGI. Jason is a tremendous force in the world of dividend growth investing, showing people that you don't need to make six figures a year or know how to time the markets. Consistent investing with a solid, well-thought out strategy, will prevail in the end and provide folks the financial freedom they strive for faster than they realize.

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    1. Genius is when someone puts something complicated like investing, and makes it simple and accessible to the ordinary man. Jason just keeps plowing through, which is why I am very certain he will be able to do what he has planned. I certainly hope to keep inspired and reach my personal goals in a few years (2018 is coming!)

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  5. I would say DGI and Dividend Mantra are my two favorite blogs I visit daily as well. As I am a Dividend growth investor, its nice to travel along side other Dividend growth investors in real time. It's motivating and supporting. Thanks DGI.
    P.S. Dont worry about those trolls in those previous post DGI... they're always gonna be naysayers and haters... they're just jealous :) Let's build up our passive income portfolio. Cheers.

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    1. Hi Tyler,

      Actually I upgraded the comments so I could directly reply to people in my messages individually. But I have developed quite a thick skin these days. I wish you good luck in your dividend investing journey!

      DGI

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  6. IMO he will be able to retire much sooner than 40 because his blog income--and he deserves it. I thoroughly enjoy both DGI and DM for reading.

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    1. I agree he deserves every single penny of that writing income - he has certainly brought value in inspiring a hoarde of new dividend growth investors, who are seeking financial freedom. I think the reason why he might not retire on blog income is because it is very risky, and things can change dramatically. A few years ago some website owners were easily clearing $2 - $3 grand/month, but then Google penalized them, and they are not earning nothing..

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  7. DGI,

    Wow! Thanks so much for the really kind words. Your support over the years has been very much appreciated.

    And your blog was one of the very first sites I visited when I was first investigating dividend investing, and what that might look like for me. So I can also thank you for turning me on to such a wonderful strategy.

    I wish you nothing but luck, but I know that you don't need it. I'm anxious for the day we both get to where we're trying to go.

    Best wishes!

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    1. I am counting the days (more like years) till I exceed the dividend crossover point, and have slightly more than needed ( for safety reasons). I just can't wait, particularly after another long work week ;-() Of course, things can get derailed on our path to success such as job losses, etc. But motivation has to be on, at all times, and keep plowing through - saving, investing in quality dividend stocks, reinvesting, rinse and repeat ;-)

      But, then we would both have control over our time after we reach FI!

      Good luck in your financial journey my friend, and keep inspiring more people!

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  8. DM is on my daily reading routine also, as is DGI. I am appreciative of the real time and the real figures that DM provides. It really puts things into perspective in the lines of "if he can do it so can I." I am jealous of how he is able to keep his nose to the grindstone and get things done. I make triple his income and will not be close to retiring early unless some drastic changes are made.....

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    1. Hello MMI,

      Yeah, I like how he focuses on saving, and then putting the money in dividend stocks. I think a lot of people have trouble cutting expenses, because some items are just tough to cut out, particularly if you have a large family. Plus, in the past 5 years, many employees have received small raises if anything. But I am curious, what types of changes are you considering?

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  9. His is one of the best for sure. I have his site bookmarked right next to this one actually. :-)

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  10. Great post. Kudos to Jason for his hard work, it's paying off.

    Mark

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    1. Kudos to you too Mark, you are doing not too bad yourself in terms of dividend income. I think you are on track to reach your goals also..

      Thanks for stopping by!

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  11. Yeah Dividend Mantra, and The Conservative Income Investor, and you DGI, are some of the main people that got me going on my own journey towards FI.

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  12. Couldn't agree with you more...your article is spot on! I enjoy Dividend Mantra as well...but the whole community of dividend investors deserve kudos! Each and every one of you are inspiring in your own way.

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  13. I have both Dividend Mantra and Dividend Growth Investor come through via my RSS feed. They are the only investment blogs I subscribe too as I can understand the reasoning and make compulsive reading.
    As a UK Investor I am presented with useful ideas on the American stocks, so thank you very much.

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  14. Hi DGI,

    Absolutely agreed with you. Beside DM, you and many other DGI blogs are my daily reading routine. All of you out there had inspired me to start to blog about my investment journal too.

    David

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Questions or comments? You can reach out to me at my website address name at gmail dot com.

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