Saturday, July 23, 2016

Weekly Roundup - July 22, 2016...Everything's Changing

Weekly Roundup filled with some of the best articles on dividend growth investing, stock analyses, personal finance and financial independence from the past week.
Happy Weekend!  Check out what's been going on in my world and some of the best articles from around the blogosphere.
It's hard to believe that in just less than 12 hours our little girl will be 2 weeks old.  She really is amazing and in just her couple weeks here she's already changed so much.  We went to the pediatrician this past Thursday and as he was checking her out he was surprised that she was keeping eye contact and tracking him as he moved.  He said you don't see that too much with babies that young.

Friday, July 22, 2016

Bad News – You Will ABSOLUTELY Need To Save More To Retire Comfortably

Why you'll need to save more to retire comfortably

Bad News – You Will ABSOLUTELY Need To Save More To Retire Comfortably

This is a guest post by Passive Income Dude at www.passiveincomedude.blogspot.com

Hello everyone,

I hate to bring bad news, but there is something going on around you, something you may have missed until now, but it is something we absolutely can no longer overlook as responsible individuals and investors.  If you have a family you are accountable for, or you are planning on ‘big’ retirement dreams for yourself, this article should help you wake up, unfortunately.

Thursday, July 21, 2016

Dividend Growth Investing at Work - 17 Straight Quarters of Higher Dividends

Concept of how dividend growth investing works
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks Omega Healthcare Investors for another pay raise!
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?  Dividend growth investing is far from a get rich quick investment strategy, rather you need to remain focused on the long term goal to be successful.

Wednesday, July 20, 2016

Colgate-Palmolive: Dividend Growth Will Disappoint

Colgate-Palmolive Dividend Stock Analysis 2016
Colgate-Palmolive Dividend Stock Analysis 2016
In my quest to build my portfolio of dividend growth investments one of my favorite industries to invest in is the consumer staples. Consumer staples provide a stability to the portfolio due to the steady nature of the business. Consumer staples don't have their operations fluctuate too much just because the economy is going through a rough patch. Likewise, they don't typically boom forward when economic growth springs back to life.

It's the stable nature of these businesses that lets them amass lengthy dividend growth streaks and makes them the foundation for many investors' portfolios.
Colgate-Palmolive (NYSE:CL) falls squarely in the category of consumer staple and is one of those companies that has always eluded my portfolio due to valuation or available cash. Colgate-Palmolive has increased dividends for 53 consecutive years giving them the title of Dividend Champion.
For some perspective 53 years ago was 1963. That's when Martin Luther King gave his "I have a dream speech", JFK was assassinated and The Beatles were just beginning their thrust into worldwide superstars.
Let's take a look at what makes Colgate-Palmolive so great and value the company using a discounted cash flow analysis.
Continue reading the article on Seeking Alpha.

Seeking Alpha - Colgate Palmolive Dividend Stock Analysis 2016

Tuesday, July 19, 2016

Dividend Growth Investing at Work - Dividends On Every Corner

Concept of how dividend growth investing works
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks Walgreens for another pay raise!
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?  Dividend growth investing is far from a get rich quick investment strategy, rather you need to remain focused on the long term goal to be successful.

Risk And Reward For Financial Independence

Image provided by arztsamui via FreeDigitalPhotos

When it comes to setting yourself up on the path to financial independence, nobody has it easy. The people who have it easy are the ones who are already there. Everybody else has to struggle along their way to the top, and there’s a lot of risk and reward along the way. This is where a lot of people take diverting paths. Financially astute people can be cautious. This isn’t always true. Other people who achieve financial independence do so through….uhhh….recklessness. Most of these people have a method to their madness, but to someone standing outside, it can look like pure insanity. We all know someone like that. And sometimes, these people don’t crash and burn. They survive and eventually thrive. It’s important to look beneath the surfaces of financial risk, to learn the method behind the madness, and determine the amount of risk tolerance you should accept.

Monday, July 18, 2016

Being Prepared to Deploy Cash During Recessions

Preparation is the key to recession investing

The following is a guest post from Sabeel at Roadmap2Retire. Sabeel blogs about investing and shares his journey to achieve financial independence via passive income.

As with seasons that change over the course of one year, the overall market and economy cycles through its ups and downs over the course of a few years. The number of years vary from cycle to cycle and as is the case with investing, it is extremely difficult to tell which phase one is presently in. It’s only when we look back that we realize how things were and the investors who learn from those mistakes manage to avoid them during subsequent cycles.

Saturday, July 16, 2016

Weekly Roundup - July 15, 2016...Sleepless Nights Edition

Weekly Roundup filled with some of the best articles on dividend growth investing, stock analyses, personal finance and financial independence from the past week.
Happy Weekend!  Check out what's been going on in my world and some of the best articles from around the blogosphere.
It looks like I was a bit premature with last weeks roundup title of "Still No Baby" as my wife started going into labor early Saturday morning.  Since this pregnancy is a million times different from the first one we were debating whether it was real or not and decided to go on and drive down to the hospital.  Good thing too because she was indeed in labor and we were on our way to meeting our baby.

In case you don't remember we decided to not find out the gender of the baby so there was an extra excitement level to find out if we were having a boy or girl on top of the excitement of having a baby in the first place.  Everything went smooth with labor and delivery and at 7:08 PM on July 9 we welcomed our 8 lb 12 oz baby girl Evelyn Grace into this world. 

Friday, July 15, 2016

The Right Reasons to Seek a Loan for New Borrowers

Approved Loan Application

Borrowing money is to be avoided if possible, but there are obvious times in life when you’ve just got to do it. If you’re sensible, you probably are averse to borrowing. You may not like to even use a credit card for all but the most strategic purchases. This is a good way to be, but it’s possible to take it too far. The lending industry is very diverse. Sure, there are plenty of companies out there who want to give you money only so they can take a lot more money back. The Payday loan industry comes to mind here. In the middle there are lending companies that don’t want to fleece you, but still want to make sure they get their money back and more besides. Think standard credit and bank loans here. Finally, there are lenders who are so sure of your ability to repay, or are subsidized by the government, that they charge you very little money to borrow. Debt consolidation and mortgage lending are examples of this latter type.

Thursday, July 14, 2016

Why We Choose Flexible Independence

Waves crashing on a beach

First off, congratulations to the new parents of baby P.I.P.!  I am honored JC asked me to help out while they get baby P.I.P situated.  Our Little Man was only born two years ago, and I remember what an adventure that was.  My name is Bryan from the Income Surfer blog, and I want to share why Mrs Income Surfer (IS) and I chose Flexible Independence over a more traditional FIRE approach.

Wednesday, July 13, 2016

Dividend Growth Investing at Work - Throttling Up Higher Dividends

Concept of how dividend growth investing works
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks Cummins for the pay raise!
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?  Dividend growth investing is far from a get rick quick investment strategy, rather you need to remain focused on the long term goal to be successful.

Tuesday, July 12, 2016

The Importance of Setting & Tracking Dividend Goals

This is a guest contribution from Ben Reynolds at Sure Dividend.  Sure Dividend uses The 8 Rules of Dividend Investing to systematically identify high quality dividend growth stocks.

The end goal of dividend investing is financial freedom.  It is the point at which your passive dividend income (after taxes) can pay for all your expenses.

When you hit that point, you are truly financially free.  Don’t want to work the 9 to 5 job (which is probably more like the 8 to 6)?  You don’t have to.  It doesn’t mean you have to retire, it just means that you are free to live your life on your terms without worrying about where the next paycheck will come from.

Unfortunately, reaching financial freedom is not something that happens quickly or easily.  It takes time, patience, dedication, and planning.

Saturday, July 9, 2016

Weekly Roundup - July 9, 2016 Still No Baby Edition

Weekly Roundup filled with some of the best articles on dividend growth investing, stock analyses, personal finance and financial independence from the past week.
Happy Weekend!  Check out what's been going on in my world and some of the best articles from around the blogosphere.
Another week down and another week still without a baby.  If we had our choice we were hoping to meet our baby on 7/4, 7/5 (my half birthday) or 7/7 (surely a lucky day), but alas that wasn't in the cards which has been a big bummer for my wife because she's more than ready to get this baby out especially with the really hot temperatures we've been having around here.  The plan now is to induce on Monday, which is another great date and the original due date 7/11, if the baby doesn't decide to come earlier.

Thursday, July 7, 2016

Dividend Update - June 2016

Dividend Update - June 2016
Dividend Update - June 2016
It's the end of one month and the beginning of another so it's time for my favorite update: my dividend update.  These dividend updates reflect all dividends that I receive through my investing pursuits. I hope they can help inspire you to take control of your own finances and invest to build a passive income stream. What you use that stream for is up to you, whether it's to fund early retirement, just provide some FI/FU money, or even to provide for an annual vacation; the key is that it can provide options and open up all sorts of possibilities. You can check my dividend income or progress pages to see what dedication to an investment plan can give you.

Wednesday, July 6, 2016

Johnson & Johnson: Steady and Predictable

Johnson & Johnson Dividend Stock Analysis

Johnson & Johnson (NYSE:JNJ) is one of the premier dividend growth companies and rightfully so with a 53-year streak of rising dividends. The consistency and predictable nature of Johnson & Johnson is why it's the second largest position in my portfolio at 4.8%.

I've been more than happy with my investment in Johnson & Johnson earning over a 15% internal rate of return since first purchasing shares in late 2013. Shares have risen over 18% since the end of 2015, which made me wonder if the share price has overrun the value of the company.

How about that dividend? 

There's a reason that Johnson & Johnson can be found among just about every dividend growth investors portfolio: a consistently rising dividend. Johnson & Johnson has one of the longest streaks of dividend increases with 2015 representing the 53rd consecutive years of dividend growth. In the entire universe of the U.S. stock market, there are only 13 companies that have a longer current streak.

The following chart shows the annual dividend payment from Johnson & Johnson since 2001 based on fiscal-year payouts as well as the rolling year-over-year, 3-year and 5-year dividend growth rates.

Continue reading the article on Seeking Alpha.


Tuesday, July 5, 2016

Dividend Update Preview - June 2016 Infographic

Come look at how many dividends these excellent companies paid out in June!  And 4 of them even gave me pay raises!

The full breakdown will come tomorrow morning, but you can get the advanced look here!

How were your dividends in June?

My real-life portfolio monthly dividend update for June 2016.
My real-life portfolio monthly dividend update for May 2016.

Saturday, July 2, 2016

Weekly Roundup - July 2, 2016

Weekly Roundup filled with some of the best articles on dividend growth investing, stock analyses, personal finance and financial independence from the past week.
Happy Weekend!  Check out what's been going on in my world and some of the best articles from around the blogosphere.
Another week gone and another week without a baby.  We're actually glad we haven't gotten to meet our little one just yet because both my wife and I wanted the baby to be born in July, if we had a say in it.  If the baby happens to come on July 5th then it'll be pretty cool because that just happens to be my half birthday.  The really great news is that the baby officially turned itself and is no longer breech so now we're just in wait and see mode until the baby decides to join us.

Friday, July 1, 2016

Dividend Growth Investing At Work - 100+ Years and 2 Quarterly Raises

Concept of how dividend growth investing works
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks General Mills for another raise!
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?

Thursday, June 30, 2016

A Look At PepsiCo's Cash Flow

Pepsi can on a beach

Drinks and snacks are staples of the American diet. That puts PepsiCo Inc. (NYSE:PEP) in an excellent spot as one of the largest consumer staples companies in the world and primes them for continued future growth.

PepsiCo has a stable of 22 different brands that generate over $1 B in annual sales. Those brands span the entire spectrum of beverages and snacks with juices, sports drinks, soft drinks, potato chips, oatmeal and much more.

PepsiCo is firmly implanted as a Dividend Champion with an impressive 44-year streak of rising dividends.

I've been more than happy as an owner of PepsiCo since initiating a position in 2013. Between share price appreciation, reinvested dividends and cold hard cash dividend payments I've received an internal rate of return over 13%. Even better is that my dividend income from PepsiCo has increased by over 32%.

However, as the saying goes "past returns are not indicative of future results". As such it's time to update my analysis of PepsiCo and determine the quality of the company and the price I'd be willing to pay for shares.

Continue reading the article on Seeking Alpha.


Saturday, June 25, 2016

Weekly Roundup - June 25, 2016

Weekly Roundup filled with some of the best articles on dividend growth investing, stock analyses, personal finance and financial independence from the past week.
Happy Weekend!  Check out what's been going on in my world and some of the best articles from around the blogosphere.
Another week down and another week where I have no idea what happened to it.  This was another crazy busy week although much of that is mine and my wife's doing because we're getting into the final countdown with the pregnancy so we're trying to pack in being out with friends since our get up and go days will soon be leaving us behind.  No more last minute decisions to go and watch a basketball game or a soccer match (the US was embarrassed this week if you didn't hear but that free kick by Messi was masterful).

Friday, June 24, 2016

Dividend Growth Investing at Work - Healthy Customers, Healthy Dividends

Concept of how dividend growth investing works
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks Medtronic for another raise!
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?

Monday, June 20, 2016

Net Worth Update - May 2016

May 2016 Net Worth Update
May 2016 Net Worth Update
While cash flow is more important when it comes to financial independence, it's still good to look at the balance sheet too, which is why I provide these net worth updates.  Since more and more of my net worth is tied to the markets, there's a larger correlation between my net worth and the markets but in the long run as I continue to save and invest the net worth trend should be higher even though short term fluctuations can vary wildly.  As a dividend growth investor I'm not overly concerned with the short-term gyrations as long as the dividend stream remains in tact, but the markets' effect is noticeable.

The S&P 500 marched higher yet again despite constant calls from pundits for a crash in equity prices.  The S&P 500 climbed about 1.5% for the month.  Since the majority of my net worth is tied to the performance of the markets every move higher for the markets means my net worth climbs higher too.  The rest of the increase came from a combination of $300 in dividends as well as receiving the last bit of severance pay from when I was laid off.

For the month our net worth increased $11,789.46.