Thursday, January 2, 2020

Best Articles On Dividend Growth Investing for 2019

As 2019 is over, I wanted to share with you the five most popular articles on the Dividend Growth Investor website. These were the most popular articles based on reader pageviews. To make it to the top five list, the article had to have been published in 2019, and generate a lot of reader interest.

I updated my archives page, which shows all a listing of all articles I have written since launching the website in 2008. You may check it out here.

The articles can be accessed by clicking on each link below:

The million dollar dividend portfolio for retirement

If you have a portfolio worth $1 million, you can easily expect to generate $30,000 in annual dividend income. Annual dividends would likely grow at 6%/year, which is higher than the raises received from most jobs. A lot of people get discouraged when they see how much money is needed to get to that dividend income milestone. I wanted to break things down, in order to provide actionable steps that would motivate those that want to improve their lives, and reach financial independence.

The Dividend Crossover Point

The goal of every dividend investor is to one day accumulate a portfolio of income producing stocks, which would throw off a large amount of dividends every month. The magic point is where the dividend income exceeds the expenses of the dividend investor. At the dividend crossover point your dividend income meets or exceeds your expenses. For many dividend investors, this is the point synonymous with financial independence. After all, after years of sacrifice, wise investment and sticking to a plan, investors would finally be able to do be free from a nine to five job. The goal of reaching the dividend crossover point is achievable, but it takes capital, time, skill or luck in order to get to the magic point.

I ran my screening criteria against the list of dividend champions, in order to identify 24 companies for further research. That was a few months ago, when share prices were lower, and it was much easier to find bargains by using statistical methods of screening. Nowadays, you have to get your hands dirty, and turn over many rocks, analyze them in depth, in order to find anything worthy of investing in.

I embrace the pursuit of financial independence. It shouldn’t be a big surprise that after discussing investments for over a decade, I am a big fan of pursuing financial independence at my own terms. To me, financial independence is the point at which your passive income meets or exceeds your expenses. This is the so called dividend crossover point. The point of learning about dividend investing and applying it with real money on the line has always been to help me reach my dividend crossover point. The main ingredients that allow you to reach financial independence are focused around earning money, saving money and investing that money.

I reviewed several dividend increases for companies who are either dividend achievers or dividend champions. A long record of annual dividend increases is a sign of quality, because only stable companies with dependable earnings are able to achieve this track record. I review the notable dividend increases weekly, as part of my monitoring process. I reviewed the dividend increases, along with the underlying financial performance, in order to determine the likelihood of future dividend growth. All of the five companies are solid, and I own four out five.

Thank you for reading! 

Hope 2020 is as successful as 2019!

Relevant Articles:

Popular Posts