Retirement Strategy: The Cold Hard Facts Of Dividend Growth Investing

Aug. 03, 2018 9:00 AM ETMETA, JNJ, KO, PG, T, TSLA, XOM493 Comments
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Regarded Solutions
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Summary

  • In order to truly benefit from dividend growth investing, you must change your approach.
  • Turn a blind eye to all numbers except ONE.
  • It is not easy, nor is it right for everyone.

"You want the truth? You can't handle the truth!" ( Jack Nicholson, A Few Good Men)Photo Source

If I had to point to the one truth about dividend growth investing that was the most difficult for me to follow, it was to focus on the income stream, its reliability, its continual growth, as well as its future prospects. What that meant to me is that I had to ignore the fluctuations of my total portfolio value, tune out the noise, and with dividend aristocrats and kings understand that my focus was on my personal cash flow from dividend income.

Naturally I had to make sure that the stocks I chose were high quality, shareholder friendly, and remained on course to continue paying and increasing dividends year after year. From everything I learned, that while I was gainfully employed, and reinvested the dividends I received, and invested regularly, my time in the market would more than likely "pay" for my future financial security. After about 30 years, my approach paid off far more than I could ever imagine.

I won't sugarcoat my fears from time to time however. Watching the value of my portfolio drop by 20-50% did give me sleepless nights and plenty of heartburn! To battle these feelings I would check the health of my companies held, probably more often than a normal person, but it was my way of handling the "truth" I chose. Don't get me wrong, I made mistakes along the way as well as moments of weakness, but as I noticed that my income stream continued to flow in an grow exponentially, I gained more confidence in my chosen path.

Think About This For A Moment

Let's say for example that your own core portfolio consisted of AT&T (T), Coca Cola (KO

This article was written by

Regarded Solutions profile picture
69.25K Followers
We mourn the loss of Alan Saltzman aka Regarded Solutions who lost his long battle with a terminal illness and departed on April 6th, 2021. Alan was a veteran contributor who started his journey with Seeking Alpha in 2011. He published more than 1000 articles and built a strong readership base of close to 80,000 followers. His contributions and expert guidance on retirement strategy will be immensely missed by Seeking Alpha and its readers._______________________________________________________________________My life's journey through retirement in my later years. and my suggestions going forward! Keep it Simple, Smart, and Safe!Stage 4 cancer.....2 years ago I couldn't focus...I stopped writing etc.....went on chemo, had to make stuff easy for my wife.....got out of all equities and now have fixed income and private family investments.Thanks for your support RS

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

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