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?
Popular Posts
-
As part of my screening process, I look at the list of dividend champions every month. I have been doing this for a decade. I believe tha...
-
A few years ago I shared the story of one small investment of a beginner income investor I met at the beginning of my own dividend journey...
-
It is not a secret that stock prices have been rising for 8 - 9 years in a row now. This makes it easy to hold on to stocks, and believe tha...
-
I wanted to send in a quick note to readers about an interesting recent development. According to recent reports I have read, Amazon has she...
-
As part of my monitoring process I review the list of dividend increases every single week. I use this exercise to check on the health of c...
-
I have a serious spending addiction – any time I find myself with some extra cash on hand, I end up spending it. This is particularly troubl...
-
I review the list of dividend increases every single week as part of my portfolio monitoring process. It is helpful to see dividend growth i...
-
Aflac Incorporated (AFL), through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life ...
-
McCormick & Company (MKC) engages in the manufacture, marketing, and distribution of spices, seasoning mixes, condiments, and other flav...
-
Kimberly-Clark Corporation (KMB), manufactures and markets personal care, consumer tissue, and health care products worldwide. The company o...
