Diversification is very important in achieving ones financial goals. My goal is to be able to create an ever increasing stream of passive income through investments in dividend paying stocks which have the history and the capabilities to increase their dividend payments over time. In order to achieve that I have focused on the Dividend Aristocrats as well as the High-Yield Dividend Aristocrats. I plan on exploring the dividend achievers list once I exhaust the two lists previously mentioned. Any foreign stocks would be included after the ever changing three previously mentioned lists are exhausted at a point of time.
In order to achieve my goal I plan on investing equal amounts of funds in at least 50 dividend companies. You could read about my screens here. I will try to rebalance the portfolio on a quarterly basis through my regular monthly contributions to the portfolio as well as properly allocating and reinvesting dividends received ( I do not plan on using the dividend income for at least several years).
Over time there will be companies that cut their dividend for whatever reason. Currently, I plan on disposing of such stocks when they cut their dividends. I do not plan on selling stocks which simply freeze their dividend increases. My research on certain old-time dividend payers like XOM or SNV show that over time companies are more and more likely to freeze their dividend.
Related Articles:
- Diversification Matters
- The case for dividend investing in retirement
- My Strategy
- Why dividends?
Subscribe to:
Post Comments (Atom)
Popular Posts
-
I review the list of dividend increases weekly, as part of my portfolio monitoring process. I usually narrow the list down to companies with...
-
The dividend aristocrats list shows companies in the S&P 500 index that have managed to increase dividends for at least 25 consecutiv...
-
The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years...
-
Warren Buffett’s Berkshire Hathaway just received a dividend check for $168 million dollar from Coca-Cola. Berkshire Hathaway owns 400 mill...
-
I review the list of dividend increases as part of my monitoring process. For the sake of my process, I focus my attention on the companies ...
-
As an investor, you buy shares in companies in order to make a profit. You generate returns through a combination of price appreciation and ...
-
Warren Buffett and Charlie Munger need no introduction. If you do, please check the Wikipedia entries for each fellow. I am a big fan of bot...
-
As part of my review process, I monitor the list of dividend increases every week. I usually focus on the companies with at least a ten year...
-
Nestlé S.A. operates as a food and beverage company. The company operates through Zone Europe, Middle East and North Africa; Zone Americas; ...
-
A lot of times the best investment ideas are right under our noses . As individual investors and everyday consumers, we have an edge over Wa...
Even though you are adopting a dividend approach you should ensure that the returns of the stocks you pick are uncorrelated. There is a good website (http://www.assetcorrelation.com) which allows you to check how diversified your portfolio is. It is just as important if you are counting on dividends as you probably want to preserve your capital base as much as possible.
ReplyDeleteThanks, I would check this site out.
ReplyDelete