Saturday, June 28, 2014

Best Dividend Investing Articles for June 2014

For your weekend reading enjoyment, I have highlighted a few interesting articles from the archives, which I find to be relevant today. The first five articles have been written and posted on this site, while the last five have been selected from other authors. I tend to post anywhere between three to four articles to my site every week. I usually try to write at least one or two articles that contain timeless information concerning dividend investing. This could include information about my strategy, or other pieces of information, which could be useful to dividend investors.
Below, I have highlighted a few articles posted on this site, which many readers have found interesting:

1) Companies I am Considering for my Roth IRA

In this article I discuss several companies, which I am considering for my 2014 Roth IRA contribution. I already added to General Mills (GIS), by taking advantage of last week's drop in prices. Over the next month or so, I expect to be able to add to a few more companies.

2) 7 Dividend Paying Stocks I Purchased Without Paying Commissions

Loyal3 is a great service, which allows investors to purchase shares directly from companies, without charging any commissions or fees. The great attributes include ability to invest as little as $10 in each investment commission free, as well as the ability to earn credit card rewards points for certain purchases.

3) Margin of Safety in Financial Independence

I want to be able to achieve the dividend crossover point by 2018. However, I want to do it on my own terms. In this article, I discuss methods that would help me reduce the risk of running out of money in retirement.

4) What Attracted Warren Buffett to IBM?

I discuss the things Warren Buffett looks at, when he evaluates companies. I then put those reasons in the context of Buffett's investment in IBM. This is one of the companies that I plan on adding to in the coming year.

5) Dividend Growth Stocks are Compounding Machines

Compounding is one of the eight wonders of the world. I have always been amazed how otherwise large, boring, and slow growing enterprises can end up delivering outstanding returns to their shareholders. I highlight three compounding machines, for which I believe best days are still ahead of them.

I read a lot about companies, and also read a lot of interesting articles from all over the web. A few that I really enjoyed over the past months include:

1) My Dividend Growth Portfolio's 6th Birthday Report

Dave Van Knapp has been monitoring a real-life dividend growth portfolio since June 2008. The primary goal of the portfolio has been to achieve a 10% yield on cost by June 2018. The performance in terms of annual dividend growth, and total returns, has been very good over the past six years.

2) Dividends Are A Return Of Capital And A Return On Capital

Dividend Mantra discusses how dividends are both a return on investment, but also reduce the amount investors have at risk. He also uses as an example one of my favorite dividend growth stocks, which coincidentally is one of his largest positions as well.

3) The Perfect Dividend Stock

Dividends4Life talks about his approach to balance between yield and growth, when selecting dividend stocks. It is helpful to select companies with different yield and growth characteristics, when constructing a dividend portfolio, in order to reduce risk.

4) Tracking your DGI Portfolio

Blogger DivGro outlines how he tracks his dividend portfolio, using Google Docs. This is helpful in monitoring  prices, valuations, dividend information for companies someone owns in their portfolio. It could also be helpful in setting up a list of companies for further monitoring. As always however, investors need to analyze companies one at a time, in order to really understand the data, make sure it is correct, and understand the story behind the business.

5) Short Term Price Movements Are Not Indicative of Value

Passive Income Earner discusses something that unfortunately is very prevalent in many investors. Many tend to focus on short-term fluctuations, and thus end up missing out on what truly matters in order to succeed as a long-term investor. Luckily, most dividend growth investors tend to be a conservative bunch, that focuses on fundamentals, and requiring a streak of dividend growth and the business strength to support it. Dividend growth investors by definition have a longer term view, which rapidly increases their odds of success.

Thank you for reading Dividend Growth Investor site. I am also on Twitter, if you are interested in following me on another platform, where I post about recent trades I have made.

Full Disclosure: Long GIS and IBM

6 comments:

  1. DivGro's Google doc is fantastic. I have been using Zack's portfolio to track my watch list, and Excel (using MSN data) for my portfolio. Neither is ideal, and there are some things missing in the Google doc, but it will definitely replace Zack's portfolio and supplement my Excel file.

    ReplyDelete
    Replies
    1. Yes, google docs is great, particularly to track things between several accounts. Other software out there, like personal capital, wants user ID and password information, which i am not very open on sharing with third-party applications.

      Delete
  2. DGI,

    Thanks so much for the mention. I appreciate it.

    Some great articles up there for reading.

    Hope you're having a great weekend.

    Best regards!

    ReplyDelete
    Replies
    1. DM,

      Thank you for reading DGI site. I am glad you are doing well, and working towards achieving your goals for 2014.

      Cheers!

      DGI

      Delete
  3. DGI,
    Do you know if you can take possession of the shares of stock you buy using Loyal3? Or transfer them to another brokerage? Loyal3 might be something my daughters could use to get started investing.
    Thanks,
    KeithX

    ReplyDelete
    Replies
    1. Hi Keith,

      I think you can transfer the shares to another brokerage, not sure about taking physical possession. But if they are SIPC insured, even if Loyal3 fails, you are fine as long as the total amount of securities owned was less than $500K.

      Delete

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

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