New Blog Posts
Let dive into the links that caught my attention this week.
Updates from My Portfolio Holdings
- [ADM] Why Archer Daniels Midland is such a great value stock pick right now
- [JNJ] Johnson & Johnson beats forecasts, profit rises 8%; raises 2014 forecast
- [KMI] Kinder Morgan increases quarterly dividends to $0.42 per share
- [MDT] Medtronic downgraded from Overweight to Neutral at JPMorgan; price target $64
- [SO] Southern Company downgraded from Outperform to Sector Perform at RBC Capital
- 10 ETFs for the core of your portfolio by John Gabriel via Morningstar Canada
- A confusing but common estate and life insurance decision by My Journey to Millions
- Avoiding plagiarism by Brick By Brick Investing
- Credit Score by Freedom Thirty Five Blog
- Financial advice for my younger self by My Own Advisor
- How to start from zero financially by Starting From Zero
- Live the 80/20 rule by Marc Winn (via LinkedIn)
- Meet the millionaire who retired at 27 by The College Investor
- The great stock buyback craze is finally ending from Zero Hedge
- The truth about Google X: An exclusive look behind the secretive lab’s closed doors from Fast Company
- Which businesses are worth your cash by Income Surfer
- 7 Dividend stocks headed in the right direction by Dividend Growth Stocks
- Dividend champions ranking: Part 1, the heavyweights by Stan Stafford via Seeking Alpha
- Dividend ETFs are bad for investors: Heres why by Dividend Growth Investor
- Dividend Hawk – A plethora of new info and data sheets have been added by Dividend Hawk and too many to list here individually. Make sure to check the site out.
- [MMM, GE] Industrial product companies that could jump – 3M, GE by Dividend Ladder
- [PG] Procter & Gamble DRIP investment initiated by Retire Before Dad
- Three reasons Im not worried about healthcare costs in early retirement by Dividend Mantra
- [WAG] Should I sell my Walgreen’s stock? by Dividend Growth Stock Investing
- [BAX] Baxter International Inc by Dividend Engineering
- [CVX] Chevron Corp by Dividend Growth Stocks
- [FDO] Family Dollar Stores Inc by Passive Income Pursuit
- [GPC] Genuine Parts Co by Dividend Growth Stocks
- [MO] Atria Group Inc by Dividend Growth Investor via DivNet
Have a wonderful weekend.
|S&P 500: Apr 2007-Apr 2008|
The first companies I picked were banking firms! I opened and funded my brand-spanking new investment account with $1,000 and could not wait to get started. I performed the following three trades in three days.
- Apr 16, 2008 (six years to this day) – Washington Mutual Inc – a savings bank holding company, which was the largest savings and loan association in the US. I bought 25 shares at $11.04 each for a total of investment of $276. The company would eventually go bankrupt on Sep 25, 2008.
- Apr 17, 2008 – Wachovia – was the fourth largest bank holding company in the US based on total assets. I bought 10 shares at $25.35 totaling $253.5. After the tremendous collapse, the company was eventually absorbed by Wells Fargo (WFC) and I got 1 share of WFC in exchange. I still own this share as part of my WFC holding.
- Apr 18, 2008 – Merrill Lynch – the world’s largest brokerage firm. I bought 8 shares at $47.95 each totaling $383.60. The company, under distress, was absorbed by Bank of America Corp (BAC) on Sep 14 2008 and I got 6 BAC shares in exchange. I held this for a long time and eventually sold it at a loss.
It took me a year or so after that when I started realizing the power of dividends and even there, I learned lessons the hard-way – going for the high yield stocks and funds. After a lot of trial-and-error, I finally found my way to dividend growth stocks and found that this mechanism worked and stuck with it. I now use a combination of dividend growth stocks, high income stocks and funds and index funds for my complete portfolio.
Why Dividend Growth Stocks?
Even though my learning curve was far from ideal, I realized that a majority of the investment philosophy out there was the traditional buy-low-sell-high, which works in theory, but is nearly impossible for anyone to time the market right. I decided that this performance-chasing was not going to work for me and turned to the concept of dividend stocks and passive income to fund my retirement. Dividend growth investors choose stocks in strong companies and participate as business owners staying invested while sharing the profits on a periodic basis; instead of active trading stocks in growth-focused companies where profits are unrealized until the investment is exited.
By subscribing to this mechanism, I am not trying to beat the market each month, quarter or year. My goal is to increase my cash flow and generate enough passive income to achieve financial independence. By following this method, I have grown my passive income by leaps and bounds over the last five years. My progress so far is shown in the chart below.
|Annual Passive Income Progress|
What was your first investment? How did you end up choosing your current investment philosophy? Share your story below in the comments section.