Monday, August 26, 2019

Dividend Growth Stocks I am Buying In August 2019

I started my Dividend Growth Investor Newsletter in an effort to educate investors on how to build and manage a dividend growth portfolio, and reach goals and investment objectives. The companies I am investing in are part of a real money experiment where I show readers of my premium newsletter how I am building a portfolio from scratch. I just bought shares in twelve dividend growth stocks this morning for this premiums portfolio.

Readers of my premium newsletter received a detailed analysis of these selections on Sunday, August 25th. They are receiving a trade confirmation by close of business today.

I go beyond just the companies I invest in every month, and analyzing these companies in detail of course. I try to instill discipline around creating and following a process for reaching a set of goals within a time-frame. The goal of the portfolio is to generate $1,000 in monthly dividend income, by investing roughly $1,000 per month in ten attractively valued dividend growth stocks. I made a slight modification this month to buy a little more than 10 companies, in order to round up portfolio weights.

I also try to instill discipline around diversification, regular investing through dollar cost averaging and sticking to a process through thick or thin. Everything I share is based on lessons that I have accumulated over the past decade.

In this real money experiment, I will walk you through the complete process of building and managing a portfolio. In real time. I am allocating money first in the best ideas I find today. This is the exercise that depends on my experience selecting winning dividend investments for over a decade. Investing is part art, part science.

In general, I look for the following characteristics in the companies I am considering for analysis:

  • A ten year streak of annual dividend increases
  • A sustainable dividend payout ratio
  • An annual dividend growth rate exceeding inflation over the past decade
  • A pattern of earnings per share growth
  • A P/E ratio below 20

This process relies on manually screening the list of dividend growth stocks I find interesting. Plus, it also involves some thinking in terms of trade-offs and probabilities. What this means to me is that based on my reviews that I have made monthly, I have noticed that certain companies can be found quite often at attractive valuations. Therefore, with this screening process, I will try to focus my attention on those harder to get companies too. In terms of trade-offs, I also think in terms of the trade-off between dividend yield and dividend growth. If a company yields less, I would be expecting faster dividend growth. On the other hand, a company with a high yield will likely be unable to grow distributions at a high rate every year. My goal is to try and select companies that I will be happy owning for years.

I am not going to churn the portfolio. I am a passive buy and hold investor who has learned that selling is often a mistake. If the companies I own cut dividends however, I will likely sell them and reinvest the proceeds elsewhere. If we get acquisitions in cash, I will likely reinvest it alongside the list of 10 top dividend stocks. If we get acquisitions in stock, I will evaluate the situation and decide what to do. The next step involved reviewing the list to come up with companies to invest in.

If you are interested in signing up for a seven day risk free trial at the low price of $65/year, you can sign up using this link:

If you are not satisfied within 7 days, you can cancel just by letting me know. If you stay, you will be able to observe me make investments in real time, over the course of the next decade or so, until I reach those investing goals. I believe that the newsletter is a bargain, at a low cost of less than 20 cents/days.

Once you subscribe, I will add you to my exclusive email list, and you will be able to receive premium information about the dividend growth investor portfolio.

This information includes a monthly list of dividend growth stocks I am buying, as well as timely notification of any ad-hoc purchases I will be making. It also includes a review of my dividend portfolio holdings, and evaluation of how I am doing relative to the goals set out at the inception of the portfolio. You will also obtain educational comments on an as-needed basis.

The price will increase over time, so you have a limited chance to grab this subscription today. If you subscribe today however, your price will never increase. I guarantee it.

Popular Posts