Recent Buy

BuySell

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. This latest purchase diverges from the normal buys that I normally pursue, as I shared in this post – Multipronged Approach to Investing. So far, I have relied on companies with growing dividends, but the current market leaves me nervous wanting me to look elsewhere. I started to look at contrarian trades and looking for undervalued assets and decided to make my first move in this space.

One of the assets that have been depressed and currently hated in the investing world are precious metals. Metals such as gold and silver have seen immense downward pressure over the past few years. There are multiple reasons for this, some of which are listed below. Investing in precious metals can take many forms and I have discussed some methodologies here and here. To recount from those articles, investors may choose to invest using bullion (comes with ownership/storage costs), ETFs (paper contracts, loses the point of investing in precious metals) or mining companies (comes with risk, such as exploration risks, management issues, lack of understanding space etc). It is for this reason, I have decided to pursue the precious metals space using a different vehicle: streaming & royalty companies.

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Chatter Around the World – 147

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Companies Running on Renewable Energy

Companies Running on Renewable Energy

Let’s dive into the links that caught my attention this week.

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Multipronged Approach to Investing

I love Dividend Growth Investing. The main focus of my investing approach over the course of past few years has been Dividend Growth Investing. I am happy to subscribe to this model and still highly recommend it for investors looking for a reliable method of generating passive income. However, over the course of last year or so – as the bull market rages on in old age, valuations have been pushed to stratospheric levels amid the falling profits from strong blue chip companies. It is for this reason, I have decided to pursue a more multi-pronged approach to investing.

Regular readers of this blog may have noticed the change in my tone of the course of the past few months…I do not feel so hot about this market and the amount of purchases have dried up and my cash position has been building up steadily. Apart from a few pockets of companies, its become very hard to find compelling buys in this market as the debt-fueled share repurchase programs have made me question investing in certain companies.

Multipronged Approach to Investing

Strategy Falling in love with one single investment (or even an investment strategy) is not a very prudent behavior as an investor. Readers may be aware that we are already using a couple of different investing strategies in our portfolios. My wife’s portfolio uses a more passive approach to investing – using broad index funds via ETFs. My portfolio, on the other hand, focuses mainly on dividend growth investing and starting this month, a part of it will also be invested in index funds. This is a good diversification model. With dividend growth companies, I target some companies which I think will do well compared to its peers and let the investments compound over time. With the index funds, I let the market do what it does best; and allows me to instantly diversify providing me with a safety net, in case I had made a terrible mistake with my individual stock picks.

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PPL Corp Dividend Stock Analysis

PPLCorp

PPL Corporation (PPL), a utility company, delivers electricity and natural gas in the United States and the United Kingdom. The company has a track record of growing dividends and is continuing to invest to grow those earnings in the coming years. PPL Corp is a Dividend Challenger having raised dividends for 15 consecutive years. The 1-, 3-, 5- and 10-year dividend CAGRs are 8.1%, 3.7%, 2.8% and 5.3% respectively. Coupled with a current dividend yield of 3.97%, PPL has a Chowder Rule number of 6.7. This article takes a closer look at PPL Corp’s business segments, outlook and a complete dividend stock analysis.

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Chatter Around the World – 146

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Yield-vs-Duration

Changes in ‘Yield vs. Duration’ between 2000 and 2016

Let’s dive into the links that caught my attention this week.

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