As a dividend investor, you have the luxury of receiving regular cash infusions into your portfolio on a regular basis. During the accumulation stage, you will also have extra cash that you would need to deploy on a regular basis. Even once you become retired however, you might still find a trickle of excess cash finding its way to your bank accounts, that you might decide to put to work in your dividend portfolio. You then have the opportunity to deploy this cash in one of two ways that you believe are the most optimal for your portfolio.
Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in March, extending the streak to 45 consecutive months of increases after June 2010’s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 74 of the last 76 months.
When learning about investing, sometimes it can be a bit overwhelming. There are tons of books and investment sites available ready to teach you.
Linked here is a detailed quantitative analysis of Kimberly-Clark Co. (KMB). Below are some highlights from the above linked analysis: Company Description: Kimberly Clark Corp. is a global consumer products company producing tissue, personal care and health care products. Its brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex and Scott. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
How to analyze investment opportunities? I have discussed before my criteria for screening dividend stocks. The screen narrows down the list of companies to look into more detail, to a more manageable level. In addition, it makes you focus on a set of companies with minimum set of earnings and dividend growth characteristics which are cheaper. Therefore, you would avoid looking at Automatic Data Processing (ADP) at 26 times earnings that yields 2.50%, and instead focus on researching the likes of Chevron (CVX) at 10.70 times earnings that yield 3.40%.
I’m taking a quick pause in my new investing series about how to build an investment strategy (read part 1 and part2) to publish my stock pick returns as at March 31st and the usual TSX60 dividend yield and ex-dividend date chart. After a full quarter, I’m already taking a step ahead of both US and CDN benchmarks. Let’s check how I beat both benchmarks by more than 1%. PSST! If you are curious to know how I keep beating the market with dividend stocks for the past 3 years, check out my new website!
Family Dollar Stores (FDO) operates a chain of discount retail stores in the U.S. The discount retailer currently includes around 8,100 stores located throughout the country. Family Dollar Stores is one of those dividend growth companies you don’t hear about too often. However, they have a very long dividend growth streak that stretches almost four decades!
I’ve been building my Freedom Fund for over four years now, shaping it from nothing into a portfolio chock-full of equity in high-quality companies that pay rising dividends. I now have investments in 46 companies, and for some that’s probably too much to manage.
Dividend investing is a huge part of my investment strategy. As I’ve mentioned in my now monthly passive income updates, receiving dividend income from my both my Ultimate Sustainable Dividend portfolio and my ETF portfolio is a primary driver of how my retirement will be like a few decades from now:) Today, I went back to find the top dividend plays in the S&P500! The top of the top is similar to what I saw last month but as you know, there’s a lot more than yield that counts:)
Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it’s aptly named. My portfolio is my way to freedom; freedom from a job I don’t desire to purchase goods I don’t need to impress neighbors I don’t care about. This journey is all about freedom and flexibility. One day the dividend income this portfolio generates will fully replace my day job’s income and my time will be completely my own. What could you possibly want to own more than your time?