I am incredibly lucky that I have been able to share my dividend investing journey with you over the past eight years. I am also very lucky that I have always maintained a frugal attitude to costs, which allows me to save money that I invest in dividend growth stocks every single month. Every action I make today helps me get closer to my goal of living off dividends after hitting the dividend crossover point. Each dividend check is used to buy more dividend stocks, that generate more dividend checks for me. This is the power of the dividend snowball in action.
One of my favorite sayings is the following:
“The best time to plant a tree was 20 years ago. The second best time is today”
I view each dividend investment as a small seed, which could snowball through the power of compounding into a mighty tree. When I decide to retire, I expect to live off the fruit from the seed I may have planted years or decades ago. With each $1000 investment, I increase the amount of dividend income I can generate. Every dollar I generate in dividend income is a dollar for which I do not have to spend 40 – 60 hours/week in the office. Every dollar allows me to buy my own time from an employer.
I managed to buy stakes in two quality dividend growth stocks over the past week. I like purchasing shares when they are on sale, particularly when I expect them to grow earnings and dividends over time. Those investments were in addition to the companies I had added to in October already.
V.F. Corporation (VFC) designs, manufactures, markets, and distributes branded lifestyle apparel, footwear, and accessories in the United States and Europe. VF Corporation is a dividend champion, which has managed to increase dividends for 43 years in a row. The company has managed to boost dividends by 15.50%/year over the past decade. Currently, it is selling for 20.40 times expected earnings and yields 2.30%. Check my last analysis of VF Corporation.
Target Corporation (TGT) operates as a general merchandise retailer in the United States Target is a dividend champion, which has managed to increase dividends for 48 years in a row. The company has managed to boost dividends by 20.30%/year over the past decade. Currently, it is selling for 15.70 times expected earnings and yields 3%. Check my last analysis of Target on Seeking Alpha.
What did you buy in the past month?
Thanks for reading.
Full Disclosure: Long VFC and TGT
- I bought the following dividend stocks in October
- From zero to $15,000 in dividend income in 8 years
- Should I buy Wal-Mart stock at current levels?
- Expense Report - Last Four Months
- Financial Independence Is Easier to Model with Dividends
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