Dividend Growth Investing To Fill-The-Gap

by: George Schneider


Evolution in our physical being and mental process is a natural part of life.

Some of us go through transitions in our approach to investing, as well.

Allow me to share some of mine with you.

Filling The Gap With Dividend Growth Investing

Subscribers to "Retirement: One Dividend At A Time" got an early look at this material and receive instant text message trade alerts which often produce lower entry price points and higher yield and income.

Please share in the comment section ways you have evolved to the type of investor you are today, dividend growth investor or not.

Over the several years I've written for Seeking Alpha, many readers and subscribers have inquired about my background and what led me to Dividend Growth Investing. I've been invited to participate on various podcasts, television interviews and panel discussions to expound upon my views of investing and income creation for the retiree and near-retiree.

Investing By Analogy

For those of you who are interested, let me begin by giving you a little analogy that carries over pretty succinctly, from my world as an everyday consumer into my investing world view.

When I go grocery shopping with the Mrs., we buy several boxes of dry cereal for the month, for those days we feel like a simple, easy, convenient breakfast. Perhaps you do something similar.

We're pretty easy to please because we enjoy many varieties. In fact, the only thing we find displeasing is a box of cereal priced at $5.00 or more. It's a good thing that there always seem to be several cereals that are on sale, without fail, on every trip to the market.

Because we are easy to please, we are always able to find much greater value by buying those cereals that are on sale for $1.99, or even less. If Kellogg's Raisin Bran is priced at $5.00 one month, I'll simply buy General Mills' Cheerios on sale for $1.99. Next month, Raisin Bran will be on sale, so I'll buy it then, for my desired price of $1.99. I enjoy both varieties, but I don't have to have them both at the same time. I don't enjoy paying full price. I like to buy on sale for greater value.

If I am able to choose from a variety of products, and always find good, high quality and pay 60% less than another product, I'll take the box on sale, every time. The thing is, there's always a sale somewhere.

From The Supermarket to the Stock Market

I'm guessing you can see where I'm going with this. The stock market, just like the supermarket, offers us a great variety of stocks (product) to choose from. In addition, like the many different cereal competitor brands, the stock market offers us many different sectors to choose our investments from.

When one sector is overpriced today (utilities, for one), another sector is on sale (energy for one example). Within each sector, with similar companies competing for the same business, one or another may be overpriced because they currently have a hot product or service, and investors can't pay enough to own it. At the same time, another company is temporarily out of favor because they missed estimates on earnings this quarter, Verizon (NYSE:VZ) for instance. Temporary dislocations in price lead to a sale price, similar to the cereal selling for 60% off.

Because I'm an income investor, focused on generating income from my portfolio to close that gap between our Social Security benefit and the necessary income to pay our expenses in retirement, I'm always interested in buying those sales.

After all, every time I do so, I'm giving myself a raise, simply because a sale price mathematically results in a higher dividend yield, which translates to higher income.

If other investors are falling all over themselves, bidding up the price of a company because they must have it today, I'm not interested in that company today. Like my supermarket behavior, I simply scan the shelves for the bargains, looking for other high quality stocks with dependable histories of raising their dividends, with identifiable records of increasing their earnings to fund those dividends.

Once I find those alternatives, those are the stocks I wish to buy, on sale. I can always buy the others on my shopping list when they go on sale, but not before.

Delving a Bit Deeper

A recent panel discussion I participated in offers a wider exposition of my thinking as regards dividend growth investing. It was conducted in a Q&A fashion, and herewith were those Q's and A's.

What led you to focus on dividends and income investing as an investing style? What relevant advantages are there to focusing on this in the current market?

George: Thank you for inviting me to participate in this discussion. I hope I can contribute a few morsels that readers will find valuable and interesting.

To your first question, I, like most folks, began as a total return investor. Whether a stock paid a dividend or not was immaterial to me. I was interested in growing my investments through capital gains. I began my investing career at the same time I began my professional music career, performing with a rock band I formed at the age of ten. All of my $1.00 per hour earnings went into the stock market. When those earning increased to several hundred dollars per night, those monies also went into the stock market.

I continued as a price-focused investor for some 50 years. Losing a large percentage of portfolio value in the financial crisis of 2008-2009 and having a greatly diminished pile to show for all those efforts of the prior 50 years, I began to study dividend growth investing. It was also at a time when I began to try to figure out how I was going to monetize my assets and create income to live off of in retirement. As one dividend after another hit my accounts, with greater magnitude and frequency as time went on, I became hooked on DGI and saw the light.

I believe the biggest advantage to focusing on this approach in the current market is that we may possibly be in the final innings of this long bull market. Valuations are reaching levels that are making many investors nervous. If this be the case, then when the inevitable bear market is upon us, price-focused investors will grow increasingly uncomfortable, while dividend-focused investors will retain comfort in the continued payment of dividends by their high quality companies. This is the glue that will help dividend investors stick(y) to their plan.

One of the big questions of 2016 has been whether investors are chasing yield too much. Utilities, consumer staples, and other 'defensive' stocks have traded at high valuations throughout the year. So, a two-part question: First, how do you avoid chasing yield? And second, do these high valuations on dividend stocks suggest any broader implications about the market for you, or are they to be expected?

George: With interest rates in the cellar for 8 long years, it is no surprise that former depositors in CDs and money market funds have turned to higher yielding instruments. And of course, since this type of investing has become all the rage with a certain subset of investors, many folks who have come late to the game have increased demand for these equities. Higher demand puts pressure on prices, which rise with increasing amounts of stock bought by this crowd.

I do my best not to chase yield by using some metrics that give me historical guidance. For instance, I try to compare the current yield of a company's stock to their five year average. If the current yield is significantly higher than the average, it is sometimes a clue that the stock is undervalued and not being properly analyzed by the market. Buying at such times usually means the stock price is under pressure.

If this appears to be a company-specific temporary situation, it gives me confidence that the cheaper price will give me some margin for error. If the stock price is down from broad, macro reasons, if it's under pressure simply because the broad market is weak, this can constitute yet another reason to believe I'll be getting yet another margin of safety.

So, yes, the higher valuations we see today are to be expected and understood in the context of a long-running bull market in which millions of former fence sitters are finally getting into the game, a bit late, but pushing prices higher simply based on increased demand for those shares.

What's the biggest risk you see to your approach right now? Is there an example in your portfolio of how you're facing or protecting against that risk?

George: The biggest risk any dividend investor faces, at any time, is a possible freeze, reduction, or total elimination of the dividend from one or more of his companies. I try to mitigate and protect against wholesale income failure, for my personal portfolios, as well as those I manage on the public side of Seeking Alpha, with the Fill-The-Gap Portfolio and the subscriber portfolio I manage for subscribers in my Seeking Alpha premium program, Retirement: One Dividend At A Time.

Firstly, I constantly monitor the markets and all of our stocks, from the opening to the close of trading. I do this for two main reasons. I want to know as soon as possible if there is a situation developing in any of our positions that might present a threat to our dividend income.

Secondly, I'm always in the market for sales. When any of our companies, or any on my watch list, go on sale, selling off by say 5% or 10%, I'll want to examine the situation and analyze whether it is a good time to do some dollar cost averaging to benefit from cheaper prices. To income investors, cheaper prices mean higher yield. Higher yield translates into higher income, for life.

Thirdly, my predisposition to weight all of our holdings equally as to income production is a very powerful way to guard against an inevitable challenge to dividend income. As long as we stay true to this method, one or two, or three freezes, reductions or even total dividend eliminations will never spell disaster for our portfolios.

Dividend investors are the types that have always lived their lives spending less than they earn. So, an occasional dividend change is easily adapted to and simply identified as the challenge that it is. Adapt by lower spending until dividend income increases from our other companies make up for the occasional miscreant, or buy new shares with excess dividend income and make up the slack there. There are numerous ways to deal with this.

What's one dividend stock or sector that you are avoiding currently, and why?

George: We are standing aside, and have been for some time now, when it comes to energy-related Master Limited Partnerships. With the cratering of the oil price, first the downstream energy gatherers got hit. It soon spread to the midstream space, the pipeline companies that everyone initially viewed as the toll collectors who could not get hurt. With the passage of time, the damage spread to all corners of the energy space.

Because I believe oil's price will be lower for longer (sounds like the interest rate song), there will continue to be pressure on the industry for a while yet. That being the case, the distributions to investors will continue to be under pressure and the subject of a lot of uncertainty. Since I'm interested in protecting the income stream of my readers and subscribers, I continue to shy away from this space for the time being.

When considering a dividend stock, what is your typical focus for return? Are you looking for capital appreciation or just for the yield?

George: My first consideration when analyzing a new position for our portfolios is always focused on the dividend income the company is producing and prospects for the company to continue raising it over time. Historical records play a big role in my thinking, but examining earnings trends to determine dividend sustainability for the future is just as important. Both of these factors have to fall into place, otherwise getting one part of the equation right but not the other could leave you on the wrong side of the trade.

I strongly believe that capital appreciation comes with the territory of a company that is able to grow their dividend. After all, the dividend is the most high-profile way a company can declare that it is growing its earnings sufficiently to pay a higher dividend over time. And with those growing earnings always comes a growing stock price.

So capital appreciation in my view becomes the icing on the cake, the inevitable long-term reward that comes with the territory.

What unique angles do you take to try to find value in the dividend space?

George: Because of my dividend focus, this brings me to those sectors of the market that have historically been associated with large amounts of free cash flow which then flow through to stockholders in the form of dividends.

These cash-flow-rich companies are usually found in the utility space, most of which benefit from benign regulators that stroke the need for price increases to support companies' needs to grow and expand to provide electricity, natural gas and telecommunication services to their customers.

In a way, companies like these have protected and bolstered cash flows, simply by regulators who recognize their needs for revenue growth.

I have a good concentration of tobacco names in our portfolios as well. This, though anathema to some investors' sensibilities when it comes to "sin" stocks, recognizes the addictive nature of their customer base and the state and federal government dependency on the enormous excise taxes they pay to keep our government bodies running. So, in a sense, there are two addicted parties to this story -- the customers who are dependent physically on their product, and government agencies that are addicted, so to speak, on the huge cash flow of taxes that they and all of us taxpayers benefit from.

As discussed earlier, whenever I am presented with the opportunity to buy high quality companies when they go on sale, my angle will always draw me to this method of enhancing our dividend income.

Related to the last one, do you have any concerns that the dividend/income/dividend growth space has become too crowded, which makes it harder to find good values? If you do, how do you combat that in your investing?

George: Yes, as discussed earlier, it is obvious to most market participants that the dividend/income/dividend growth space has indeed become crowded. This makes it more difficult for all of us to find the value we seek in order not to over-pay.

What it points to is a need for more patience. I use all of my digital tools I've created to create watch lists of companies I want to add to our portfolios, or new positions I'd like to add to core positions. I use the metrics I've built into them to help guide me toward the lower prices that will lead me to the yield and income that makes sense for me.

If value cannot be found in one sector, we look for it in another sector. That's the beauty of having a diversified portfolio. There's a constant rotation among those sectors, pushing prices up in one, while pushing them down in another. So it becomes an exercise in monitoring all of the sectors in order to spot the undervalued situations developing. When the time is ripe and price compression creates a good entry price, we place our order and execute our plan to grow income.

What's a current favorite stock in your portfolio, and why are you holding it? What is a stock (or type of stock) that you have on your watchlist as a potential add?

George: Like a good parent, it's not politically correct to say you like one child more than another. So too, with a portfolio, we try to be invested in all of our names in a similar manner. But if I'm pushed to give an answer to this, I'd go with a recent name we added to our current position. We recently bought more Government Properties Income Trust (NYSE:GOV) in line with a recent article I wrote to demonstrate the benefits of dollar cost averaging a position that decreases from original price paid. From our original price, GOV fell recently with the whole REIT space on the nervousness in the market surrounding the upcoming Fed rate increase.

Because I believe that a minuscule ¼% rate increase will present no particular threat to this company, we put our money where our mouth was and bought additional shares in the subscriber portfolio when GOV sold down 5%. This price break brought us an 8% yield on this new investment. Two days later, shares fell another 5%. We stepped up to the plate and sent a text message once again notifying our subscribers that we had bought more shares. This time, we bought a substantially higher yield, at 8.5%.

This is a small example of some of the techniques and strategies we employ to grow income on a regular basis. We have been growing income like this for our subscribers going on eleven months now. We celebrate our one year anniversary of the subscriber portfolio on November 1, 2016 and I, and the great majority of our subscribers, are quite pleased with our progress in growing both income and capital growth of the portfolio, 100% more or greater than the broad market indices, depending upon the day.

A name on our watch list currently is the monthly dividend company, Realty Income (NYSE:O). We currently own shares in this great REIT for some time now. But we're always in the market for a bargain. This name broke through nose-bleed territory, over $72.30 per share and most investors realized it was overvalued. I've had it in my sights for further share accumulation in the area of $58.00 per share. At Tuesday's closing price of $60.81, we're only 4.8% away now. This fall in price from the $72.30, 52-week high will represent a discount of $14.30 per share or almost 20%. This is equivalent to a bear market retracement.

At $58.00 per share, the $2.42 annual dividend will get us a cozy 4.17% yield. That's a whole lot more yield and income than the 3.34% yield buyers got just a few months ago.

This 25% increase in yield and income is what I'm on the hunt for, every day the market is open for trading.

From Philosophy To Practical Application

Now that you have a better idea of the thinking that goes into my stock selection and focus on generation of income, here's a peek at some of the results that good asset management of the subscriber portfolio brought to subscribers last week, found in a note to subscribers at the end of last week.

RODAT Payday Recap, Week of October 10-October 14, 2016

I am pleased to inform you that many dividend increases came our way on the RODAT subscriber portfolio this week. I mentioned a couple yesterday in the chat forum. I have some others to share with you today.

Dividend Recap, week of October 10- October 14, 2016

  1. Altria (NYSE:MO), on October 11, paid us an increased dividend of $.61 per share quarterly, up from $.565 last quarter. This was a very healthy 8% increase.
  2. Omega Healthcare Investors (NYSE:OHI) declares $0.61 dividend Oct 13 2016, 16:41 ET | About: Omega Healthcare Investors, Inc. Omega Healthcare Investors declares $0.61/share quarterly dividend, 1.7% increase from prior dividend of $0.60.Forward yield 7.31% Payable Nov. 15; for shareholders of record Oct. 31; ex-div Oct. 27.
  3. More good news, Philip Morris (NYSE:PM) paid us an increased dividend of $1.04 quarterly on Oct 13th. This was an increase from $1.02, which represents another 2% increase from this company.
  4. W.P. Carey (NYSE:WPC) paid us an increased quarterly dividend on Oct. 14 of $.985, raised from $.98 last quarter, and up from $.9646 just three quarters ago. This most recent raise was a ½% increase from the previous quarter.
  5. Main Street Capital, our business development company, increased its latest monthly dividend from $.18 per month to $.185 per month on October 14. This represented a 2.8% increase in our dividend income from this name.

Dividend Growth Continues to Perform Its Function

Five solid dividend increases, representing 25% of our portfolio constituents, in one week lets us know we're on track. Together, we continue fulfilling our aims and goals building and growing our portfolio income for retirement.

From Practical To Digital To Income

As we translate philosophy to practical methods and application in the realm of stock selection, there are a variety of tools we deploy to help with the selection process.

Real Time Portfolio Tracker

The Real Time Portfolio Tracker enables us to examine current portfolio positions in relationship to income production from each component, dividend amounts, yields, percent of income produced from each position and many other actionable metrics, all in real time, updated throughout the trading day. It helps us identify when stocks go on sale, and lets us see the resulting betterment of income that results with each one of those sales.

Click to enlarge

Reduce Risk By Weighting Positions To Equal Income

On occasion, a reader will ask me, "Aren't you violating the principal of diversification by demonstrating the purchase of one or two stocks?"

You'll discover that we have well-diversified portfolios that we manage here on Seeking Alpha and for our subscribers. When we add a position to the subscriber portfolio subscribers receive early notification and instant text alerts if they wish to mirror the trade.

The closer we hew to this principle of weighting our positions to provide essentially equal amounts of dividend income, the more we de-risk the portfolio for any future possible dividend cut. Our diversity of sectors and number of constituents impart some level of risk mitigation. Should one or two components reduce their dividend at any point in the future, our income would temporarily decline by perhaps 2% to 5% or so, depending upon the severity of the cut. If such a position were to be sold, the proceeds would be reinvested in another, more promising name, and most of the preceding dividend income would be restored.

When stocks fall to better-timed entry points, we buy shares in order to grow portfolio income. To gain some of these better-timed entry prices that enable me to receive higher yield and income, I use the Tracker to alert me and serve as my research and trading assistant.

The Real Time Portfolio Tracker allows me to easily discover additional share positions necessary to bulk up share count in order to bring its annual income closer to parity with the other positions in the portfolio. Column O on the extreme right of the sheet clearly indicates what percent of portfolio income each component contributes, so a quick glance delineates the positions that need fattening, as all data is updated in real time, all day.

Viewing Success In Stages

I believe in the concept of building a portfolio one dividend at a time. I also believe it is important to see our rewards in a simple, straightforward manner, one which reinforces our proclivity to invest, and then reinvest our dividend in order to compound our income.

Remember, since we are now income focused, rather than price focused, having tools to measure the growth of our income become essential to our task of building that very income. The feedback they give us is invaluable and the reinforcement of our investing behavior is priceless. We want to see that our portfolio income is rising along the same type of trajectory that many of our portfolio constituents have evidenced.

In an effort to stay connected to our portfolio dividend income and the successful stages of growth of that income, I'll enter our positions in both the public Fill-The-Gap Portfolio and subscriber portfolio into the Dividend Growth and Income Spreadsheet. It keeps me focused on my bottom line of producing income. When dividends are raised, I'll enter that into the assigned column. My algorithms then compute for me my new income on each portfolio constituent, the new income when a raise occurs, the yields, the increased percent of income and total portfolio income. This focus helps keep me on track toward my goal of building and growing income.

Dividend Growth And Income Spreadsheet

Click to enlarge

In order to impose some order and organization on our portfolios, the Real Time Dividend Minder is quite helpful. For all investors, and especially retirees who have even more of a need to track incoming income sources and outgoing expenses, it makes it easy to match dividend income with expenses and smoothes out the process to make budgeting simple.

Again, especially for retirees who need to match their inflow with outgo this can be invaluable. This tool will track many metrics for stocks, mutual funds, BDCs, MLPs and CEFs (it will not automatically fetch data for some preferred stocks or ETFs for which you can manually enter data). It also helps to balance the portfolio as to diversity of sectors and equal weighting of income from each position to reduce the risk of overall portfolio income failure. In addition, it reports dividends, income and dividend payment dates automatically in real time.

To illustrate, because Realty Income pays its dividend monthly, we have entered it into each of the dividend sectors along with other holdings that pay in those months. Realty Income is highlighted here in all of the sectors in red type for easy identification.

Because Omega and Government Properties pay their dividend in the months of February, May, August and November, we've entered their tickers in the second dividend sector and highlighted those in red as well, for easy identification.

Real Time Dividend Minder

Click to enlarge


Many seniors and retirees feel under attack by various forces swirling in our economic lives. One day we're dealing with large increases to our Medicare premiums and increases in deductibles, co-pays and drug costs. The next day, we discover our Social Security benefits are being increased next to nothing, at a .2% increase in 2017 which is completely wiped out by the Medicare increases.

The attack and pressure continues by the private sector increasing fees on our retirement accounts that make it that much more difficult to cope with necessary retirement expenditures. The squeeze continues when we discover we may not even have access to our funds in the next credit crisis. At the very least, we'll have to pay our money market mutual funds a penalty, get out of jail fee, to release our money from their vaults.

Investors of all ages who feel like they've been run ragged by the last two bear markets and accompanying large loss of capital may decide it's time for a change.

Stock price volatility, as we've shown, can be used to the investor's advantage, even in temporary panics and more extended bear markets. With the right tools and strategies at our disposal we can navigate any investment cycle to our advantage.

Rather than be frightened by it into selling good stocks at the worst possible times (having bought high then selling low), the investor who opens his eyes to the possibilities and the opportunities that arise can benefit greatly from a rising income stream that will help him close the gap between his Social Security benefit and his spending requirements in retirement.

The Fill-The-Gap Portfolio At A Glance

Almost two years ago, I began writing a series of articles on December 24, 2014, to demonstrate the real-life construction and management of a portfolio dedicated to growing income to close a yawning gap that so many millions of seniors and near-retirees face today between their Social Security benefit and retirement expenses.

The beginning article was entitled "This Is Not Your Father's Retirement Plan." This project began with $411,600 in capital that was deployed in such a way that each of the portfolio constituents yielded approximately equal amounts of yearly income.

The FTG Portfolio Constituents

Constructed beginning on 12/24/14, this portfolio now consists of 19 companies, including AT&T, Inc. (NYSE:T), Altria Group, Inc., Consolidated Edison, Inc. (NYSE:ED), Verizon Communications, CenturyLink, Inc.(NYSE:CTL), Main Street Capital (NYSE:MAIN), Ares Capital (NASDAQ:ARCC), Reynolds American, Inc. (NYSE:RAI), Vector Group Ltd. (NYSE:VGR), EPR Properties (NYSE:EPR), Realty Income Corporation, Sun Communities Inc. (NYSE:SUI), Omega Healthcare Investors (NYSE:), StoneMor Partners L.P. (NYSE:STON), W.P. Carey, Inc., Government Properties Income Trust, The GEO Group (NYSE:GEO), The RMR Group (NASDAQ:RMR) and Southern Company (NYSE:SO).

Because we bought all of these equities at cheaper prices since the inception of the portfolio, the yield on cost that we have achieved is 6.63%.

FTG Portfolio Close, October 17, 2016

Click to enlarge

I've posted the above chart to illustrate the defensive nature of the FTG portfolio. While all three major market gauges were down around .3% each, the FTG at the close had an opposite mirror performance. It closed in positive, green territory, up .22%. At the same time, the defensively constructed subscriber portfolio was also ahead, up .11%.

This was on a day that the 10-year Treasury climbed into new recent record territory, at 1.81%. Interest rate jitters continue to rattle investors, but both of our portfolios reacted defensively to this newest development, holding their own in the positive.

FTG Recap

Currently, the FTG is producing $27,305 in annual income, which is $165.00 greater than last month. When added to the average couple's Social Security benefit of $28,800, we have, in only 20 months' time, significantly exceeded our goal of filling the gap between SS income and a comfortable $50,000 retirement. In fact, our total income between these two sources is now $56,105, which, again, is $165.00 more than last month's income.

This is due to the dividend increases we received last month and our reinvestment of dividends into our new position in Southern Company shares and the new dividend income attendant to this purchase. We are now in hailing distance of our dividend income exceeding Social Security benefit income.

We have experienced no cuts, no freezes and no elimination of dividends in 22 months of portfolio management. On the contrary, we have enjoyed a regular stream of dividend increases, more than enough to keep us comfortably ahead of inflation.

With its beginning value of $411,600 and the addition of a $6,500 IRA contribution for 2015 and a $6,500 IRA contribution for 2016, total asset contributions come to $424,600. The portfolio has grown $67,154 to a value of $491,754. This represents capital appreciation of 15.82% in just 21 months.

$491,754 - $424,600 = $67,154 capital appreciation

$67,154/ $424,600 = 15.82% percentage gain

This year alone, the FTG has grown $37,076 in value, or 8.15%, while the Dow is up only 3.80% and the S&P 500 is up just 4.04%. Accordingly, the Fill-The-Gap Portfolio has effectively returned 2.14 times the return on the Dow Index. In other words, it has handily trumped the Dow index by 114% and has also more than doubled the return of the S&P 500 index and the Nasdaq Index.

RODAT Subscriber Portfolio Recap

Our charter subscribers who began with us November 1, 2015, have seen their portfolio grow $39,708 in capital value, for a gain of 10.82% in just 11 months. This year alone, subscribers have enjoyed $19,404 in capital appreciation, or a 5.20% gain. This represents outperformance of the Dow Jones Index by 1.37 times, or 37% better performance.

Most importantly, for our bottom line, annual dividend income has already grown to $25,100 with our latest purchases and consistently increasing dividend rates. This was a result of additional shares purchases in an existing REIT to the portfolio and my analysis surrounding an enormous increase in gun checks recently announced by the FBI and discussed in "What Can A World Chess Championship Tournament Teach Us About Gun Sales?" This resulted in a good, realized capital gain which was subsequently reinvested in other equities that increased our income, once again.

My FTG Mirror Calculator

After doing their own due diligence, readers and subscribers wishing to proportionately emulate FTG Portfolio or RODAT Portfolio trades for their own portfolios can use the "My FTG Mirror Calculator" or the "My RODAT Mirror Calculator" to simplify their task.

With the touch of a button, readers know exactly how many shares to buy if they wish to mirror the FTG Portfolio. In real time, it indicates the current price of the stock, the current dividend and yield, how much the purchase will cost and how much dividend income the new purchase will produce annually. All of these metrics are updated on a real-time basis, all day long.

My FTG Mirror Calculator

Click to enlarge

Author's note: Should you be interested in reading any of my other articles detailing various strategies to enhance your returns on a dividend growth portfolio, you will find them here.

I invite you to follow me in order to be notified of all of my new work on a real time basis. Simply click "follow" next to my picture, then choose "follow this author" and "real-time alerts on this author".

As always, I look forward to your comments, discussion and questions. Sharing your evolution to strategies you use today in your retirement investment accounts would especially be appreciated.

As our subscriber roster fills up, we will soon be ending the FREE two-week trial of my subscription service which includes instant text alerts. To learn more about this premium service, please click this link:

Retirement: One Dividend At A Time

Disclaimer: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended.

Disclosure: I am/we are long T, MO, ED, VZ, CTL, MAIN, ARCC, RAI, VGR, EPR, SUI, OHI, STON, WPC, GOV, GEO, RMR, SO.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.