Showing posts with label admin. Show all posts
Showing posts with label admin. Show all posts

Sunday, August 31, 2014

Best Dividend Investing Articles for August 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 four 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) 14 Dividend Growth Stocks I Bought On the Dip Last Week

As some companies started declining in price at the beginning of August, I was able to initiate or add to positions in those securities. As I continuously screen a group of companies I am interested in based on price, it is very helpful when those get into the value territory. Overall, August was a busy month for purchases and sales of puts. Unfortunately, I won't be able to allocate more cash to stocks until some time in October. Of course, January's Roth and SEP contributions are just a few months away from there, followed by tax day. Hence, a little bit of cash accumulation might be helpful.

2) Dividend Investing for Financial Independence

I plan on living off dividends in retirement. In this article I discuss numerically, how to reach target monthly dividend income levels. For example if an investor puts $1000/month companies yielding 4% today and achieving a 6% annual dividend growth,and reinvests dividends, their portfolio will generate over $7,900 in annual dividend income in ten years. However, if our investor put away $2000/month in income stocks with the same characteristics as above, they would be achieving $7,900 in annual dividend income only after 72 months.

3) Kinder Morgan to Merge Partnerships into One Company

Kinder Morgan is simplifying its structure, by merging all limited partner interests into the parent company Kinder Morgan Inc (KMI). This move will create an energy powerhouse, which will be able to enjoy benefits of scale, unique geographic position, simplified structure, lower cost of capital and a ready currency for further acquisitions. The combined company is forecasting an increase in the annual dividend to $2/share by 2015 and then a 10% annual dividend growth through 2020. As a shareholder of KMI, I am happy. As a shareholder of KMR, I am happy as well. The unitholders of KMP and EPB will face some immediate tax hits, once the transaction closes. However, I believe that for those who buy and hold, they will do pretty well for themselves if they do not do anything for at least a decade. Now all shareholders and former partners will have the same interests as Richard Kinder, who I believe to be the Warren Buffett of Energy.

4) How to Invest Like Warren Buffett

Buffett has become a billionaire by continuously keeping an open mind for opportunities which will keep paying him for decades to come. All he has done is look for those situations where he can find a quality business, which will earn more in 15 - 20 years, has a low risk of change that will impact profitability, is managed by quality management team and is available at a good price. Of course, Buffett has also been helped immensely by the insurance float generated for Berkshire Hathaway, as well the hedge fund fees he earned in his days of the Buffett Partnership in the 1950s and 1960s. However, as an ordinary investor, I keep most of my energy focused on how I can select companies that generate a lot of cashflows to me, that I can use to then buy more stock in companies that generate more dividends for me.

5) Why Warren Buffett likes Investing in Bank Stocks

I wrote another article on Warren Buffett and why he likes investing in bank stocks. I believe that he likes their deposit float, which is essentially a very low cost of capital, which is pretty stable over time, and could be deployed by able and honest managers into lucrative projects such as mortgage or business loans. Of course, management quality is of utmost importance, which is why he has been adding to shares of Wells Fargo (WFC) in the past couple of decades.

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) Warren Buffett's $50 Billion Decision

I often get asked why do I want to "retire" early, given the fact that my "idol" Warren Buffett is 84, and is not even thinking about "retirement". The truth of the matter is that Buffett has been "retired" since 1956. This article from Forbes describes the decision that the Oracle of Omaha did for himself when he was 26 years old. Surprisingly, his retirement gave him the time to pursue his passion of learning and investing. The billions he made as a result of Buffett Partnerships and Berkshire Hathaway were a pretty nice side-gig. Retirement is about being in control of your time, and doing what you love, not about watching soap operas.

2) Weekend Reading – August 29, 2014

Dividend Mantra has compiled several interesting articles on dividend investing, in his weekly review. In addition, his "retirement" seems to be going really well, as he is making thousands of dollars writing about dividends, and he has recently been interviewed by Mint.

3) Weekly Links: August 31, 2014

My friend Dividends4Life has also compiled a list of pretty good articles on dividend investing on his website. I am surprised that not a lot of other readers know about him, given that he has written about dividend investing for over 7 - 8 years and has tracked his dividend numbers for the same period of time. He is a baby boomer who is dilligently working his way towards retirement.

4) Weekly Roundup - August 31, 2014

The Passive Income Earner also has a list of several articles on Dividend Investing. This is another site I read regularly, given that the writer is someone who has been saving and investing huge amounts to kick-start his dividend machine. I also have used his site to find other sites related to dividend investing.

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 KMI, KMR, WFC, BRK.B 

Saturday, July 26, 2014

Best Dividend Investing Articles for July 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) Seven Dividend Stocks I purchased for the long-term

I was able to identify seven dividend companies, and purchase them in my tax-deferred accounts. In the article, I discuss the names involved, brief information behind each company and why I purchased it. Since I am a stock picker, I believe that investors can find bargains during most times.
On a side note, I also sold some 2015 and 2016 puts on General Electric (GE), Wells Fargo (WFC) and Altria (MO) a few days ago. I am also close to selling some puts on General Mills (GIS) in the coming days.

2) Are you drowning in cash?

I discuss the issue that many investors and corporations have today. The issue is that they are drowning in cash. For the everyday dividend investor like me, I believe the best idea is to keep searching for values, and dollar cost average in those values every month. With a long-term horizon, I believe the power of compounding will provide good returns over time.

3) How to earn $900 in dividend income per minute

Warren Buffett's holding company Berkshire Hathaway is one of the largest shareholders in Coca-Cola (KO). Those 400 million shares effectively produce over $900 in dividend income every minute. Buffett likes receiving dividend income from his holdings, but prefers to allocate those funds himself into other income producing assrts.

4) Can everyone achieve financial independence with Dividend Paying Stocks?

In this article I go through the steps I take each month, in order to achieve my goal of financial independence one day. I believe that everyone can achieve the so called dividend crossover point, which is the point where dividend income exceeds expenses, if they apply themselves and keep learning about investments all the time. I do believe that success will be achieved by those who put in the time and do the work today, and let the snowball roll.

5) Five Dividend Machines With Growing Distributions

One of my ways to monitor dividend growth stocks is through regular monitoring of dividend increases. In this article that readers found interesting, I highlighted five dividend growth stocks, which recently announced increases in distributions.

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) A 0% Allocation to Fixed Income?

Dividend Mantra had a very interesting article on why he has no exposure to fixed income. Given the low returns on fixed income, the unfavorable taxation on interest, and the fact that interest barely keeps up with inflation, I share his views completely. I found particularly interesting the discussion how Social Security checks represent an asset that is similar to fixed income, which also provides inflation protection.

2) Why Dividends Matter?

Dividends4Life provides 11 compelling reasons as to why dividends do and should matter to investors. He also provides 11 dividend growth ideas for further research by investors. He is one of the most consistent dividend bloggers out there, and I have had the pleasure to interact with him over the past seven years.

3) 20 Dividend Champions To Buy Today

Chuck Carnevale provides a list of 20 dividend champions which are in value territory today. While everyone else has been worried sick about a correction, individual dividend investors like Chuck have been able to allocate their capital wisely in the best values that they see at the moment. This is what makes dividend growth investing appealing to investors like me who put money to work every month - even when the stock market is at elevated levels, there are always quality companies available at bargain prices.

4) Why Have Dividend Aristocrats Outperformed?

Sure Dividend provides some very interesting reasons on why Dividend Aristocrats have outperformed over the past decade. It is not surprising that when you have highly profitable businesses, which are the leaders in their industries, manage to keep growing earnings over time, have high returns on equity, and have the discipline to keep rewarding long-term shareholders with consistent increases in dividends, that you will generate market beating returns over time.

5) You Are Responsible For Your Investing Decisions

Dave Van Knapp, who is the author of The Top 40 Dividend Stocks of 2014, wrote an interesting article about personal responsibility in investing. Every investor has a duty to themselves to do proper due diligence, prior to purchasing any investment.

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 KO, one share of BRK.B and short puts on GE, MO and WFC

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

Saturday, June 7, 2014

Dividend Investing in a Bullish Market – How You Can Make Good Investment Choices

This is a guest post by Mike, aka The Dividend Guy. He authors The Dividend Guy Blog since 2010 and manages portfolios at Dividend Stocks Rock. He is a passionate investor.

When we look at the market over the past 3 years, we see only good news. Basically, my 9 year old son would have probably been able to make money off the stock market like the rest of us. But now that the easy money is gone, how are you still going to find good investments in such bullish market?

Last year, my US dividend stock picks went up by 37%, that’s 11% more than VIG, the Vanguard Dividend Appreciation ETF. Why? Simply because I keep following simple but effective rules. Here’s more about my investing process.

#1 Start From My Investment Strategy

 It’s not because the market is up or down by 30% that I must scrap my investing theory in the first place and start over from scratch. A few years ago, I made a list of financial metrics companies I buy must follow. Now that the market is up for several years in a row, I’ve modified them to reflect the new reality.  So here are the basic metrics I use when starting my hunt for a new stock:

Dividend yield over 2.50%
Dividend payout ratio under 80%
3yr/5yr Dividend growth positive
3yr/5yr EPS growth positive
3yr/5yr Sales growth positive
P/E ratio under 20

My minimum requirements are defined to show strong companies that have everything under their belt to continue paying a healthy dividend. My thinking is to identify stocks that are able to increase their dividend year after year. If they do that, it means that everything else is going well. After all, no matter how hard a company wishes to increase its dividend, if there is no money in the bank account, it just can’t write those checks!

Once I’ve made a list of stocks from my screener, I start looking at each of them to see if they show steady trend patterns or hectic numbers from one year to another. My graphs look pretty much like what DGI shows on this blog.

#2 Allow Myself  to Cheat

Who said cheating wasn’t permitted? The key is to cheat only on one or two metrics – not to completely deviate from your investing process. Remember, when cheating, you take higher risk… but with higher risks, can come higher rewards! This is why I separate my holdings into two segments: my core holdings (where my “premium” stocks are) and my dividend growth additions.

A part of my portfolio is the core holdings. These stocks would qualify under a regular dividend investing strategy or “buy & hold” if you prefer. When there is an opportunity, I invest 5-10% of my portfolio in a company that has great upside potential over a relatively short period of time. I usually pick them from the list I’ve previously mentioned.

Once my core portfolio is built, I look to add more risk (cheat) to my portfolio. This is why I’ve separated my core portfolio from my dividend growth stock additions. These picks are meant to provide greater results within a short period of time. They don’t fit my “premium” stock list and shouldn’t. These companies are picked on a potential scenario that might happen.

#3 Make Sure Your Core Portfolio is Solid Before Taking Gambles

I obviously didn’t start adding several “dividend growth additions” prior to building a strong core portfolio. My core is made up of consumers & aristocrats that I plan to hold forever (or until they fail on me!). This includes companies such as KO, JNJ, WMT, MCD, CVX. Once I felt my core was strong enough to go through any storm, I started to “cheat” and add riskier stocks such as STX (which I sold) and AAPL (currently up 45% in my portfolio).

I don’t intend of holding these stocks forever. In fact, I usually ride them for less than two years before I cash out my profit through a stop sell. Since these stocks show higher potential, but higher risk, they are usually more volatile as well. This is why once I reach a good level of profit and feel the metrics are slowing down, I set a stop sell and assure a good profit margin on my trade.

So far, this has helped me build a very powerful portfolio offering both regular & increasing dividend payouts while also showing strong capital growth.

This is a simple but effective way to manage a portfolio and it works! All you need is an investment strategy and the discipline to apply it no matter what.  If you are looking for a longer explanation on how I manage my portfolio, you can read about my dividend growth model.

Are You Looking for Help Managing Your Portfolio?

If you wish to manage your own portfolio but lack time or knowledge to do it, I’ve built a tool called Dividend Stocks Rock to help you. This site offers everything you need to become a successful investor:

A bi-weekly investing newsletter;
8 different stock lists to help you pick from the best amongst the best;
12 live portfolios covering small to $500K+ portfolio sizes
An exclusive Stock Ranking system to help you buy and sell at the right time

I continuously add more features to Dividend Stocks Rock. Strong from my first 10 portfolios (8 of 10 beating the market), I’ve created the $500K+ portfolio. I’m currently working on adding ETF lists to provide you with a broader range of investment solutions. You can even try the service for 30 days and cancel without any fees, how about that? If you are interested, check out the Dividend Stocks Rock service.

If you have any questions on how I manage my portfolios or about my service, please leave a comment on this blog and I’ll be more than happy to answer all your questions.

Best,

Mike


Saturday, May 31, 2014

Best Dividend Investing Articles for May 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) Generate a retirement paycheck with these dividend paying stocks

I believe that living off dividends in retirement is a more sustainable way that selling off portions of your portfolio. I highlight several quality companies which I believe to be good values today, and which have good prospects for long term growth.

2) Should I buy more high yielding stocks in order to retire early?

In this article, I am debating whether it makes sense to focus more on higher yielding companies, in order to retire early. I share why I am building my portfolio the way I am today, and also discuss how I evaluate risk in dividend investing.

3) Dividend Investing During the Financial Crisis

I discuss the lessons I learned from the Financial Crisis of 2007 - 2009. As a result of those lessons, I believe that my dividend portfolio is in much better position to withstand the next calamity on the horizon.

4) Dollar Cost Averaging Versus Lump Sum Investing

In this article, I compare dollar cost averaging to lump sum investing. The results from the data I used are really telling, and supporting something I have done with my money over the past seven years. Check the article to find out which method is favored by my analysis of the data.

5) Personal Dividend objectives versus the market environment

Investors cannot expect to construct unrealistic portfolios while having only their own goals and objectives in mind. Instead, investors need to realistically focus on what the market offers right now, and make the best out of it. Imposing your will on market will likely lead to disappointment down the road.

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:

6) Notes from the 2014 Berkshire Hathaway Meeting

Warren Buffett is the best investor in the world. In May, tens of thousands of Berkshire Hathaway shareholders went to hear him talk about business. The notes from the meeting are available from that link above.

7) If I Were Starting All Over Again

Jason from Dividend Mantra discusses the steps he would take to become financially independent, if he were starting all over again. This article is helpful for those who are about to begin their journey to financial independence, as well as those who are already on their way of achieving their goals.

8) Dividend Income Progress Update - April 2014

Dividends4life has been publicly tracking his dividend income every month since 2007.  He has some pretty high goals for annual dividend income by 2027.  He is crushing it currently with his dividend income, which is due to the fact that he saves money consistently, follows a disciplined approach to investing and monitors his positions in the process.

9) 22 Dividend Bloggers Share Their Top Investing Advice

Blogger Dan Mac reached out to 22 authors of dividend investing sites, and asked them for their best advice for beginner investors. I was included in this poll as well, but I am including this article because I really believe it could add value for those of you who are just starting out.

10) Four Key Dividend Metrics You Need to Know

Dividend Ninja shares four metrics that he finds to be helpful in evaluating dividend paying stocks. Those include dividend yield, dividend payout ratio, debt to equity and profit margin.


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.

Saturday, May 3, 2014

Best Dividend Investing Articles for April 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:

When to buy dividend paying stocks?

Seven Sleep Well at Night Dividend Stocks

Where to search for investment opportunities?

How to Manage Your Dividend Portfolio

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:

Why I Eventually Want To Be Invested In 50 Companies: Income Diversification

Don't Touch These 5 Dividend Stocks!

Michael Lewis And Flash Traders Do Not Affect Long-Term Investors

What Do I Do With My Stocks If The Market Crashes?

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.

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.


Saturday, March 29, 2014

Best Income Investing Articles for March 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:

Richard Kinder: The Warren Buffett of Energy

I admire investors with skin in the game, who are fully invested in the company they manage. Richard Kinder is one such person, who has built an energy empire in the US, and continues to expand its legacy. He reminds me of Warren Buffett, only that Richard Kinder is focusing only on energy.

Why Did I Purchase This Dividend Paying Company For a Third Month in a Row?

Back in early 2014, I started dollar cost averaging in this company. I broke up my position size using Loyal3 commission free brokerage, and decided to take advantage of this opportunity. The time to purchase blue chip dividend paying companies is when there are some bad news that are widely known, which depresses prices since it scares the amateurs away. To paraphrase Buffett, when everyone is fearful, you have to be greedy.

Accenture PLC (ACN) Dividend Stock Analysis

Last week, I initiated a half position in the consulting company. I like the prospects for earnings and dividend growth, the attractive valuation and the strong brand and quality of long-term business relationships under the company's belt. In addition, this company is a cash machine, which requires very little in fixed costs in order to operate successfully and expand the business. One thing to note is the Irish Withholding tax, and the fact dividends are paid semi-annually.

Do not become a victim of fear in your dividend investing

Many investors tend to obtain their information from secondary sources, some of which try to confuse them purposefully in an effort to increase circulation. In this article, I outline the importance of thinking for yourself, after carefully examining facts, and not overly relying on other people's opinions.

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:

20 Favorite Dividend Growth Stocks from 20 Dividend Growth Bloggers

My friend Dan Mac polled twenty dividend investing website writers for their favorite stock picks. He also was kind enough to include me in the poll. You would have to check the article out for yourself, but the most loved company seems to be Coca-Cola (KO).

Dividend Stocks vs. Dividend ETFs

My friend James over at Dividend Growth Stocks compares Dividend ETF's to Dividend Stocks. I find it very interesting that many serious dividend investors prefer to build their own portfolios, rather than choosing the pre-packaged investments available out there and having no say over portfolio distributions. One of the main reasons I am against Dividend ETFs is the fact that frequent turnover results in fluctuating income.

Selective Dividend Reinvestment Vs. DRIP

My friend Jason from Dividend Mantra wrote a very thorough article where he compares the benefits and drawbacks of automatic versus selective dividend reinvestment. The selective reinvestment works for him, because he is able to save several thousand per month, and pool those resources with his dividend income in order to purchase more dividend paying stocks. I do exactly the same thing. However, if I could only afford to invest a few hundred dollars a month, chances are that I would be dripping.

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.

Saturday, March 1, 2014

Four Investing Articles For Your Weekend Enjoyment

I spend a lot of time at my day job, spending time with my family, monitoring my investment portfolio and researching existing and potential dividend investments. I also spend a lot of time every single day, reading about investment articles and books about investing. I am usually very open to learning how other investors go about their investment process, and investment philosophy. I have highlighted a few articles from investors whose words I value a lot below:

Buffett's annual letter: What you can learn from my real estate investments

This was an excerpt from Buffett’s 2013 letter to shareholders, which discussed his experience purchasing real estate. The lessons learned are very applicable to stock market investors, and are lessons that are frequently mentioned by the Oracle of Omaha himself. The analogy of Mr Market and the reference to The Intelligent Investor are must reads for anyone who wants to be a long-term investor. To succeed in investing, think of yourself as a partial business owner in an enterprise, whose success is determined based on durability of the investment and its expected earnings, rather than the irrational nature of stock price fluctuations.In addition, he is also scheduled to post his full annual letter on the company website.

Separating Company Performance From Stock Performance

This article from Dividend Mantra was posted on the same day that the excerpt from Warren Buffett was posted on Fortune. I like the topic of focusing on the underlying business when investing, and ignoring the irrational nature of the stock market itself. Dividend Mantra walks us through the reasons why he kept adding to his exposure to Digital Realty Trust (DLR), despite the falling stock price. As a holder of Digital Realty myself, I found the decline in the stock price a welcome opportunity to add to my position there.

Kinder Morgan's Response to Barron's

The Kinder Morgan group of companies was featured in a very biased article by financial publication Barron’s over the past week.  That Barron's article didn’t really add anything new, that hasn’t been discussed before. However, it quoted the opinion of an analyst whose faulty logic has already been refuted by others before. (Motley fools article ) Unfortunately, investors who did not do a very good analysis of Kinder Morgan Partners or Kinder Morgan Inc panicked and have been selling off their ownership stakes. I own both KMI and KMR, and am happy to say that both account for the largest position in my portfolio. I like to have smart people like Richard Kinder work for me. My only regret is that I didn't use the dip to add to my positions in the general or limited partner, given my high exposure to Kinder Morgan.

On the Merits of Being a Financial Historian

I liked this article, because it discusses why it is important for investors to learn about financial history. History doesn't repeat, it rhymes. If you want to be a successful investor, learn about history, and avoid chasing returns. Many investors I have met, tend to always focus on stocks when everyone talks about it, and avoid them when stock are unpopular. To be successful, you need to develop independent thinking, which could only be done if you continuously learn about investments.

The Buffett Formula - How To Get Smarter

I really like this article from Farnam Street, because it discusses a little known fact that explains Buffett's success as an investor. The truth is that the guy has managed to read 500 pages a day for 60 - 70 years in a row. As a result, his knowledge of investments is superior to most anyone else in the world, which allows him to act fast when opportunities arise. There are no shortcuts to investing, so you need to be willing to work hard at analyzing businesses, reading annual reports and industry publications and reading books, in order to do well. I personally read about 80 - 100 pages/day,  but I also enjoy the process. After several years of following investments, it becomes much easier to spot what you are looking for.

Saturday, February 1, 2014

Best Dividend Investing Articles for January 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:

The Security I Like Best: Philip Morris International

I analyzed Philip Morris International (PM), which is one of the largest positions in my dividend portfolio. I discuss risks and opportunities that could propel earnings and dividends over the long-haul. I also discuss why the company is a steal at current valuations, and why it is the security I like best at the moment.

How Did Warren Buffett Build his Fortune

Most investors know that Buffett is a legendary stock picker. His fortune was built on the operational leverage he had as a general partner of the Buffett Partnerships he managed between 1956 - 1969. His fortune was also aided by the low cost leverage from Berkshire's insurance operations. The leverage at BPL and the insurance float magnified his performance. However, he would have achieved success even without those levers. This is because Buffett has been able to spend 60 - 70 hours/week studying and learning about different investment opportunities for the past 70 years.

Should Dividend Investors Worry About Rising Interest Rates?

Many investors are scared from the potential of rising interest rates. In this article, I outlined several reasons why I am not taking into my investment considerations the possibility of rising interest rates. I believe that while rising interest rates can change asset valuations, dividend investors are not spending their time wisely by focusing on macroeconomic factors.

How to buy when there is blood on the streets

It is very interesting how there is never a perfect time to acquire partial ownership stakes in quality income producing companies. There is always a reason not to buy. In this article, I discuss how investors should try to capitalize on excessive fears by others. I illustrate that with my purchases of Target (TGT), which I plan to dollar cost average into monthly, throughout 2014.

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:

How I analyze and Value Stocks

Dividend Mantra discussed his process for analyzing dividend paying stocks. This was a very comprehensive article, which included not just quantitative factors, but qualitative factors such as moats, brand names, economies of scale etc.  Last, he also discusses different resources investors could use, in order to research a company. There are quite a few similarities between his process and my research process.

The Ultimate Goal of Dividend Investing

Passive Income Pursuit provides some background on how he got started with dividend growth investing. He also discusses why the strategy is working for him, and provides good examples about his dividend snowball. His goal, is to ultimately have dividends pay for his monthly expenses, and not be reliant on a job that could be eliminated at any time.

How to earn rental income with REITs

Canadian Blogger My Own Advisor, provides a very good overview for beginners on REITs. He discusses the pros and cons of REITs, which provide an alternative to investors who want exposure to real estate investing, but do not want to receive the proverbial 2 AM call from tenants.

Dividend Growth Portfolio for Passive Income

Joe at Retireby40 discussed his dividend portfolio holdings.  He is able to generate a very sizeable amount of passive dividend income, which would likely grow in the future. His portfolio is more concentrated than I would like it however, which is why he is trying to trim a few positions.

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.

Sunday, January 19, 2014

Dividend Growth Investor Website Turns 6 Years Today

I just wanted to post that this site just turned 6 years old today. I made the first post to the site on January 19, 2008. I want to thank everyone who reads it.

The purpose of this site was to make me a better investor. I am trying to achieve that by putting down investment thoughts on paper, and document my reasoning why I liked certain companies and strategies. By writing things down, and posting it out there, I am essentially pushing myself to do the actual work before committing money to an investment. By keeping a constant schedule, I am able to mentally maintain my persistence to keep plugging at my dividend investing. Dividend investing is a marathon, not a sprint, which is why it is important to be persistent, and patient all the time. Sometimes you will get low on motivation, which is why it is important to develop systems to get yourself out of it! For me, every time I receive a dividend, I am pretty ecstatic, because that is income I didn't have to work for, generated from an investment I may have made years ago.

I used this site to document aspects about dividend growth investing, which I learned through my research. As I keep learning more, I keep writing more. I also try to think ideas out loud, write them down, and see if they make sense.

In addition, when I post something in public, I get the opportunity to get feedback, which could uncover ideas I might not have thought out about. Another benefit of having a website is that I have been able to connect with other investors, and learn more about their thought process, and resources they utilize in their stock research. I especially like when someone asks me a question, because by interacting, I might think about something I have not previously thought about.

My road to Dividend Growth Investing was a long and arduous one, but once I learned about it, I decided this was the strategy for me. For several years prior to becoming a Dividend Growth Investing, I learned all there was about charting, indicators, momentum investing, stock market history, and about the stories of successful traders. The thing that always made me shun those strategies was the fact that one could correctly identify a company that will grow in value, yet make little money because you get whipsawed when it has a correction. You get whipsawed, because when companies are on their way to greatness, they never go up in a straight fashion. I then decided that buy and hold is my preferred method of investing, since it involves less time, taxation costs and investment costs than active trading. I also wanted to be able to generate cash flow, no matter whether stock market was going up or down. I did put a large portion of my money in CD’s, which provided cash flow. The problem was that the income and principal were losing purchasing power due to inflation. I was looking for a strategy where I would earn more income over time on my capital, while my capital would also compound above rate of inflation as well.

As I kept doing research, I uncovered the beauty of Dividend Growth Investing. Once I saw how a company like Johnson & Johnson (JNJ) managed to keep earning more, and pay more dividends over time, I was instantly hooked. It isn’t that difficult to get excited about a company, where a single $1000 investment can generate hundreds of dollars in annual dividends after a certain period of time. In my experience, some people who learn about Dividend Growth Investing get it almost instantly. The rest will never get it, and will provide you with 100s of reasons why it is a bad strategy. While it is helpful to get opposing viewpoints, in order to avoid making stupid mistakes, I have found that arguing with the people who don’t get Dividend Growth Investing is a waste of my time. They probably do mean well, and sometimes have some good points such as don’t fall in love with a stock, focus on earnings growth and not just chasing yield, diversify etc. Of course, everyone has their choice of how to invest money, and I am fine when someone finds something that works for them. I chose Dividend Growth Investing, because it fits perfectly with my long-term goals of generating a rising stream of income from my portfolio. I didn’t want to be at the mercy of the stock market, and risk depleting my nest egg by having to sell during bear markets, in order to meet my living expenses. I also didn’t want to invest in shiny growth companies, with sky-high valuations ( or non-existent earnings), which may or may not survive, and where market sentiment about the stock price results in huge fluctuations.

I like the relative stability and predictability of companies like Johnson & Johnson, Coca-Cola, Philip Morris International, which quietly compound earnings, dividends and capital over time. They are there, in plain sight, making patient long-term investors rich, while everyone else is out there searching for the next Microsoft. I like that when I get a dividend it is mine to keep, and cannot be taken away from me. Dividends are more stable than capital gains, which makes dividends an ideal way to live off my nest egg. When dividends increase over time, they also preserve purchasing power of income and principal. Over time, as a company like Coca-Cola earns more, it pays more in dividends, and becomes more valuable to investors. Therefore I get the trifecta of goodiness.

I launched the site in early 2008, just as the global financial system was imploding. I started off converting most of my assets to Dividend Growth Investing between 2008 and 2009. I would be the first one to admit that the timing of my initial investments was based on pure luck in hindsight. Since then, I am spending my time saving money, looking for bargains, analyzing companies and learning more about dividend investing and quality companies. I am building my dividend machine one dividend paying stock at a time. I also encourage everyone to keep learning as much about stock selection as possible, by studying anything on Ben Graham, Peter Lynch, Warren Buffett, Charlie Munger, Philip Fisher etc.

I am a regular person, like everyone else that reads this site, who has a day job, saves some money from it, and then wants to find a place where my money can work for me. I am always low on time.
I do not write about myself on the site, because I do not think I am that interesting. I also do not write specifics about my financial situation. I already post my ideas on investing for free, so asking for extra like specific numbers is asking too much if you ask me. I don’t see why an anonymous person would be interested in how much I have, and ask me to post it online, unless their intentions are bad. In addition, anything I write about on this site, includes my thoughts about companies, strategies, is not a recommendation for anyone else to act on. You should do your own research before you make any investment decisions, and not rely on everything that anonymous people post on the internet.

Anyway, thanks for reading my site. I have a lot of articles written over the past six years, which I have posted in the archive accessible from here. I hope to be able to share my investment experiences over the next 5- 6 years as well.

Relevant Articles:

Dividend Growth Stocks – The best kept secret on Wall Street
Dividend Growth beats Dividend Yield in the long run
Frequently Asked Questions (FAQ) About Dividend Investing
The Dividend Investment Journey
My Dividend Goals for 2014 and after

Saturday, January 11, 2014

Best Dividend Investing Articles for 2013

The past year was the sixth year in which I have been sharing ideas on dividend investing on this site.

I have outlined the top five articles written in 2013, which readers found to be the most useful. I have also added a brief summary behind each article.

1) Best Dividend Stocks for 2013 and Beyond

I presented a list of 20 quality dividend paying companies, which were attractively priced, and are great long term holdings. Some of these companies like Walgreen (WAG) went up in price considerably, and I could only consider them great holds. Others like Phillip Morris International (PM) are available at attractive valuations today. After all, the name of the game is to select a quality company at a reasonable price, which grows earnings and raises dividends for you. Your job is to then hold on to that compounding machine, and let the power of compounding work for you.

2) Warren Buffett's Dividend Stock Strategy

In this article I analyzed some of Warren Buffett’s largest investments at Berkshire Hathaway. I found out that the Superinvestor likes to generate growing distributions from the companies he invests in, and then uses those to purchase more businesses that distribute excess cash to him. The similarities with what dividend growth investors do on a monthly basis are strikingly similar, which is why I believe that Buffett is a closet dividend investor.

3) Ten Dividend Paying Stocks I Purchased in my Roth IRA

Last year, I had the realization that I am paying too much in taxes. As such, I am trying to defer taxes as much as possible, by tapping every legally allowed way to put money in 401 (k), SEP IRA and Roth IRA. In this article I discussed ten companies which I purchased using Sharebuilder for my Roth IRA. The purpose of this series of articles on Roth IRA investing was that one could invest $5,500 over a three month period, make 25 – 30 individual investments, and pay $24 in total commission costs. By reducing investment and taxation costs to a minimum, the investor will keep more money for themselves. You can create you tax-free dividend compounding machine today by making a Roth IRA contribution, and won’t have to pay any taxes on income when you withdraw it at age 59 ½. By my estimates, a $5,500 investment today could generate approximately $200 in annual dividend income. If dividends grow by 6%-7%/year and are reinvested into securities yielding 3% - 4%, the annual income stream would grow to $1600 in 30 years and $3200 in 40 years.

4) Why Most Dividend Investors Never Succeed

In this article, I outlined a few behavior items that can prevent investors from achieving their investment objectives. I believe that most buy and hold dividend investors have an edge because of the relative passivity of their strategy. However I believe that succumbing to behavior issues could jeopardize investment success. While the article was more geared towards new investors, I think that those who have experience in dividend investing could benefit from reminding themselves about psychological pitfalls of investing in general.

5) Twenty Dividend Stocks I Recently Purchased for my IRA Rollover

The last article I am outlining lists twenty companies I purchased for my IRA. I rolled this account over from an old 401 (k) at Fidelity in the past year. The process took less than a day, as I kept the IRA at Fidelity. It was difficult to find 20 companies to put my money to work in at almost the same time, but I managed to pull it off. My retirement accounts are the only places where I automatically reinvest dividends.

It is very interesting that the readers like to hear more about purchases I have made, or specific companies I discuss, rather than income investing strategy. I actually believe that the strategy piece is the most important one, whereas individual stock selection is a result of having a sound investment plan.

6) A few other information resources I enjoyed covered an interview with Peter Lynch and a documentary about Sir John Templeton. You can find the links below.

Interview with Peter Lynch
Documentary about Sir John Templeton
Sir John Templeton and Peter Lynch

Thank you for reading Dividend Growth Investor. I hope the new year brings us a correction, which would allow us to get more dividend paying stocks for our bucks.

Saturday, December 7, 2013

The Best Articles on Dividend Investing for November

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.
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 several months include:


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.

Saturday, November 9, 2013

Best Articles on Dividend Investing for October 2013

For your weekend reading enjoyment, I have highlighted a few interesting articles over the past month from the archives, which readers 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:

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 several months include:
    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.

    If you have any ideas on topics that I could cover, please write down below. I would add them to y to-do the list promptly.

    Saturday, October 19, 2013

    Weekly Articles on Income Investing: October 19, 2013

    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:


    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 several months include:

        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 usually post about recent trades I have made. If you can think of anything else I could cover, please do not hesitate to comment below.

        Saturday, October 12, 2013

        Interesting Articles on Dividend Investing For Week of October 12, 2013

        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:
        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 several months include:
          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 usually post about recent trades I have made. If you can think of anything else I could cover, please do not hesitate to comment below. I purchased shares of Vodafone (VOD) and General Mills (GIS) in my ROTH IRA portfolio on Tuesday.

          Saturday, October 5, 2013

          What companies did I purchase over the past week: October 5, 2013 Edition

          The past week was busy for me, as I made purchases for both my Roth IRA and taxable accounts. I purchased British Petroleum (BP) in the taxable and Roth IRA accounts. I also bought some IBM (IBM) and Altria (MO) in my Roth. This is in addition to the investment in Kinder Morgan from last week in the Roth. I try to tweet about those investments, and then review them on the site. After I make a few more investments in the Roth, I would likely post an article within the next one - two weeks. After I finish up making my Roth contributions in November however, I might start accumulating cash for my 2013 SEP IRA contribution. Therefore, unless the Government Shutdown creates 10 - 20 % drops in the stock market, I might not be making any sizeable purchases until sometime in 2014.

          Next, I have highlighted a few interesting articles from the archives, which I find to be relevant today. The first few 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:
          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 in the past week include:
          Thank you for reading Dividend Growth Investor site. As you can see, the best way to learn about my recent investments is to follow me on Twitter. This is because I might not post about them on my site for several days. If you can think of anything else I could cover, please do not hesitate to comment below. 

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