The world is changing at a rapid pace. Some technologies such as the internet and smartphone apps have redefined the way we work and live. Despite all the change, I keep focusing my efforts on companies which have managed to keep their status quo for years, and have a high chance of continuing their quest for higher profits in the future.
They say earning the first million dollars is by far the most difficult. That doesn’t seem very difficult to believe does it? When you’re starting out, most of your assets are held in real estate which isn’t very liquid and doesn’t work as well in terms of generating compound interests:) However, it does look like it’s easier than ever to make that first million, just take a look at this chart: That being said, being a millionaire clearly does not mean what it used to, especially in this era of ultra-low interest rates. Someone earning 4% on $1,000,000 (which would be fairly good) would only generate $40,000 before taxes. And that is for a portfolio of 100K. It’s unlikely that someone with a net worth of $1M would have all of his money in the market.
I think that I don’t have to convince anyone on this blog that dividend investing rocks. That it’s among the best investing strategies there are over the long term. It produces income and reasonable growth potential. It basically brings to the table what any investor is looking for: a source of both revenue and growth. There is one thing however, amongst all the arguments that we can discuss, what is more attractive about dividend investing than any other investing strategy. This is what I call the best thing about dividend investing. Since 2010, I’ve worked to convert my portfolio into a 100% dividend stock account. I’ve successfully made the move and am now cashing in the dividends (literally) of my *new* investing strategy.
Recently, I was contacted by a reader named Talgat. He emailed me all the way from Kazakhstan. It’s truly wonderful to have readers from halfway across the world! Talgat had a question about dividend reinvestment. I wrote about this a while ago, but I thought I’d refresh this subject.
Linked here is a detailed quantitative analysis of Walgreen Co. (WAG). Below are some highlights from the above linked analysis: Company Description: Walgreen Co. is largest U.S. retail drug chain in terms of revenues, this company operates more than 8,000 drug stores throughout the U.S. and Puerto Rico. 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:
I love dividend growth stocks. I love reading about dividend growth investing. So I decided to combine the two by reaching out to some of my favorite dividend growth bloggers and asking them about their favorite dividend growth stocks. And be sure to stick around because at the end I will discuss both my current and my all-time favorites!
Some traditionalist would say your home is your greatest wealth building asset. I would argue it is not. Others would say your income is your greatest wealth building asset. Thought there is a lot of truth to the statement, it is still not your greatest wealth building asset. So, what is your greatest wealth building asset? Everyone is born with it. Few realize its importance until they lose most of it. The asset is so priceless it can’t be bought. Your most valuable wealth building asset is time.
I was recently away from home for a two week period. During the time, I did not have the opportunity to check email or look at my dividend stock portfolio. The first thing I did after coming back was log on to my brokerage accounts. I noticed that everything had gone smoothly and I had more in cash than before. This should hardly come as a surprise to most readers – dividend investing is a low key, low activity process. It does not involve staring at a computer screen for 8 hours a day nor does my portfolio require tinkering every day, week or month. Most of the companies I tend to purchase are held as long term investments. Heck, even if I don’t do anything with my dividend for a couple of years, I highly doubt my portfolio income will be affected.
Looking back much like Mark did in this post I can also tell you where I’ve made some investing mistakes. One of the things I did right however is not stressing about a retirement number. It certainly wasn’t a million dollars to retire on, and I didn’t retire that long ago. Here’s my story how I’m living off a portfolio of less than $1 million dollars and for folks nearing retirement, maybe you can too.
Linked here is a detailed quantitative analysis of Archer Daniels Midland Company (ADM). Below are some highlights from the above linked analysis: Company Description: Archer-Daniels-Midland Co. is one of the world’s leading agribusiness concerns, with major market positions in agricultural processing and merchandising.