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Dividend Growth Investor

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  • The Tradeoff Between Dividend Yield And Dividend Growth [View article]
    You would disagree Retail. But you are totally wrong.

    My family has owned agricultural land for several centuries. (ok, maybe 2 centuries).

    My family has lived off the fruit of that land for those 2 centuries(actually wheat is not fruit, but still, bear with me). The wheat that was harvested in those 2 centuries has paid for the lifestyle of several generations of my ancestors.

    You see, they never cared about the value of their land. All they cared about is how much wheat/income it could produce in a given year. They did not want to sell the land in order to fund their lifestyle, because that would have been a terrible decision for the future generations.

    Since my grandpa moved to the city, all he ever cared about is the check he would get every year, to supplement his retirement income.

    To put this into perspective for you, in case you do not get the link between this story and dividend investing; It doesn't matter if KO trades at $80/share or $40/share or $20/share; all that matters is the earnings it generates and the dividend it distributes to me as the owner.

    If you do not get that, then most anything else I say will never get to you. And that is fine with me.
    Sep 23, 2013. 09:14 AM | 2 Likes Like |Link to Comment
  • Target Corporation - A High Growth, Attractively Valued Dividend Champion [View article]
    Actually, I like the TGT atmosphere better than WMT's. However, WMT appeals more to people who make less $$$ than TGT. WMT has an incentive to renovate stores in places where there is competitions from the likes of TGT. I used to live in a town where WMT was the only place in town, and it looked bad; I have also lived in a city where WMT was one of the games in town, and the store was spotless and amazing..
    Aug 13, 2013. 02:44 PM | 1 Like Like |Link to Comment
  • Target Corporation - A High Growth, Attractively Valued Dividend Champion [View article]
    When I wrote the article a few weeks ago, I bought Target around 2.50% entry yield. The stock moved higher by then, so I updated the 69 dollar target..

    I guess in the long run, whether you pay $69 or $70 doesn't really matter. But if you can get in below $69, you might get slightly more TGT for your buck..
    Aug 13, 2013. 02:42 PM | Likes Like |Link to Comment
  • Karl Popper And Dividend Growth Investing [View article]

    A diversified portfolio of dividend growth stocks is not riskier than a diversified basket of equities that an index fund offers.

    Based on my observations, you are biased against DGI for whatever reason, and are looking for anything against it;

    Instead, you should study the facts, and let them lead you to your conclusions. You might be surprised what you learn.
    Aug 8, 2013. 07:53 AM | 5 Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]

    As usual you have a logical error in your statements. I can't be both fine that people can pick the strategy that best suits them, and be unhappy that you selected your strategy.

    Now it makes perfect sense to me why you disagreed in the first place
    Jul 17, 2013. 08:05 PM | Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]
    Mike Nadel,

    I never dismissed anyone who said they can't save $3K/month. I repeat that the most important thing is to get started. If you only have $100/month to invest, you are ahead of the pack anyway. But as you earn more/spend less, try to put as much as possible away. On the contrary, it seems like many are dismissing me, because of a number I mentioned.

    The thing that really strikes me, is that people keep telling me it can't be done. In my life, I prefer the people that tell me how something can be done, not how it can' be done.

    I guess my attitude is that I can do whatever I set my sight on. You set your sight on a goal, and then work your way towards that goal.

    I can give you four example simply off the top of my head on ordinary people who can save/have saved a lot as youngsters. One is my fellow Dividend Mantra, who holds a middle class job.

    Another one is myself.. A third one is a single gal who works a middle class job to max out a 401K, and then has a second part-time/weekend job/ to pay off her mortgage - which is abt $1- $1.2K/mth.

    A fourth one is another one I know who works hard, and saves one of her paychecks completely. She started at 48K at age 22, makes 5K annual bonus, and prolly gets 8-10% annual raises - she works VERY hard at her job, and gets promotions. In the past year, bought a rental property, which generates good money for her, and although she probably saves $2K, in a few years ( before she gets to 30) she will be able to get to that point. She does live with the boyfriend, and they share a small apt together.

    This is the last thing I am going to say here. I do not like to waste my time on circular discussions. The goal of this article is not how much money a youngster can save - I am not a personal finance guru. People are going to disagree with me based on their personal opinions and experiences- that's fine with me. However, next time you hear someone tell you that such and such cannot be done, stop for a second, and ask yourself " How can it be done?"
    Jul 3, 2013. 07:30 AM | Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]
    Everyone has to decide what works for them, and the amount that is comfortable for them. Everybody's situation is different, but also remember that everyone can achieve their goals with their own actions. Even if you save $100/month, you are ahead of the game, because you are working on your future.

    However, getting hung up on the figure $3000/month is an example of missing the forest for the trees. And btw if I could save $3/K in my 20s, I think everyone that wants to, can do it too.
    Jul 2, 2013. 09:53 PM | 4 Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]

    I am out of touch with YOUR reality. In my reality a person that is in their 20s or 30s can save $3K or more. That is the type of reality you should strive for.

    If you can't save $3K month, it's not a problem. And I don't know why people get hung up on the $3K figure. The goal is to just start working towards a goal. People who succeed in life, make goals and work their way towards them. People who fail, are those who make excuses.

    PS I have never met a sales person who wants to be just "average".
    Jul 2, 2013. 09:44 PM | 5 Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]

    The most important thing is to get started. Don't worry you have little money now - in time you will have more to invest. The knowledge you are accumulating will pay dividends for years to come.

    Good luck my friend!
    Jul 2, 2013. 08:10 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]
    Actually the articles that appear on Seeking Alpha are republished from my personal site. The table didn't post, so here is the link to it:

    I think someone in their mid to late 20s can afford to put $3K/month in stocks. For most in their 30s, they should be able to do it. Of course, everyone is different, and just because it is easy for me to do it, doesn't mean I am the benchmark. However, if you never set high goals for yourself, you have a very low chance of achieving them
    Jul 2, 2013. 07:59 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investing Is A Perfect Strategy For Young Investors [View article]

    I appreciate your comment. However, I am not sure what exactly you are disagreeing with.

    This article is written for someone who

    1) Has money to invest, and has a basic knowledge of Personal Finance with knowledge of credit cards, student loans, mortgages etc.
    2) Has the time/inclination to learn how to invest in stocks, and hopefully dividend stocks.

    If Johnny doesn't have money, he won't invest. If Johnny has money, but no time, he is better off in index funds. However, my audience is the DIY type investor, who manages their own money and has basic PF knowledge.

    Also, when do you think is the best time for Johnny to learn about investing? Wouldn't it be a lifetime goal to keep learning? Wouldn't it be nice for Johnny to start learning when he is 24? Or do you think Johnny should start learning at age of 62 -65? Even if Johnny used index funds, he can still lose money if he doesn't know what he is doing.

    I know this is not factual evidence from a study, but in my experience dealing with investors since 2008, many are switching to DGI or dividend investing after accumulating a certain amount in traditional 401k plans or cashing in pension lump sums. Many of these people are going straight for the highest yielders, and make silly mistakes. Anytime I discuss investing with someone in their 50s and 60s, I do not get through - they are already set in their ways and keep going without learning. I have a gentleman that is fully invested in high dividend stocks, who has no idea what total return means, and appears totally unprepared to manage his money (at least to a layperson like me).

    As far as a young person doing dividend stocks, I bought my first dividend stock at 23, and have never looked back. Before that, I had researched investing strategies for the previous 10 years, but didn't really have much in real money to invest till I was 22. My strategy has been predominantly dividend growth stocks since then ( plus some CD's). So I believe that if someone like me can do what I have described being done, then everyone should be able to do it.

    Learning about investing is very important, and is a lifelong journey. There are so many options out there to invest ones money - Johnny should pick the one that suits him best.
    Jul 2, 2013. 07:56 PM | 3 Likes Like |Link to Comment
  • How To Crush The Market With Dividend Growth Investing [View article]

    I feel awful. Absolutely terrible..

    That's because I won't have much cash to invest until August. I never talk about the personal finance aspect of it, but paying estimated taxes in June, plus spending $$ on your vacation trips make it difficult to save in June & July & sometimes even August. But then come October, I would have more cash coming in that I know what to do with it (relatively speaking).

    I just hope stock prices go down from here.

    By the way, Charlie Munger says that if you are not willing to sit through a 50% correction, you should not be investing in stocks. I agree 100% with that.
    Jun 21, 2013. 11:41 AM | 4 Likes Like |Link to Comment
  • General Mills Dividend Stock Analysis [View article]
    I am looking at GIS too. A pullback would be nice..
    Jun 17, 2013. 12:58 PM | 1 Like Like |Link to Comment
  • General Mills Dividend Stock Analysis [View article]
    Instead of hitting the % sign, I put a 5 instead. Good catch - it is 54%
    Jun 17, 2013. 12:57 PM | Likes Like |Link to Comment
  • Boost Your Portfolio With Wells Fargo [View article]
    Aren't you worried about the flat revenues and the fact that EPS increase since 2009 was only as a result of the reduction for provision for loan losses? Check my analysis below:
    Jun 12, 2013. 06:34 PM | 2 Likes Like |Link to Comment