Friday, March 27, 2015

First milestone

Hello, I'm Div4Son


With my DOV and MCD dividends received mid month (after the previous results), I am happy to report that I have exceeded the $100 dividends a month milestone.

I just need to repeat this a couple of times to get to the $100K mark with $300 monthly dividends. Not a bad strategy for building Dividend Growth Stocks!

Not bad for ~ 6 months.

Tuesday, March 24, 2015

Dividend Yield Theory Spreadsheet

Hello all, this is Div4Son.


In my Getting Started Part I post, I mentioned the Dividend Yield Theory that is described in "Dividends Still Don't Lie" book by Kelley Wright.

There is a good description here in the 'Tao of Wealth' blog. 

"According to the dividend yield theory a stock or a stock market index is overvalued when the yield is low and the price is high and undervalued vice versa. The actual yield at which a stock becomes overvalued or undervalued depends on its own history of dividend yield over many years."

Sunday, March 22, 2015

Time and patience (and dividend reinvestment spreadsheet)

Hello, this is Div4son.


The other day, Mr. Passive Income Pursuit commented that you need need lots of patience and time for dividend growth investigating to work. 

This is correct - but why?

The experienced ones will immediately say compounding and dividend reinvestment etc. It takes a few years for these effects to be noticeable. 

The answer again is correct, but like my old math teacher said we need be see some proof. 

So, this is my attempt at some math. 

Sunday, March 15, 2015

Purchases since August 2014

Hello,

I am Div4son.

It is about time to show the portfolio I have been building. My goal is to acquire 30-50 stocks - but I have already started doubling up on existing positions while I search for more bargains.

This is a summary of my purchases since August 2014 when I started investing in dividend stocks.


Sunday, March 1, 2015

Getting Started Part II


Hello, this is Div4Son,

This is my high level strategy:
  • Build a diversified portfolio of 30 to 50 stocks of high quality companies with high dividend growth and current high dividends.
  • Reduce risk of downside (don't chase the yield, require a high margin, buy when the company is fairly valued or below).
  • Continuously build up cash capital for investments - invest in at least one company every month, with spare capital for 'black friday' events.
  • Balance the portfolio by investing in under represented positions & sectors.
  • Reinvest the dividends during the accumulation phase. Live off parts of dividends, reinvest the rest in retirement.
  • Monitor the portfolio quarterly 
  • Sell based on what the dividends tell you. e.g. Sell when it is cut.