Sunday, July 31, 2016

Dividend Growth Investing at Work - Dividends Are Sweet!

Concept of how dividend growth investing works
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks Hershey Company 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 rich quick investment strategy, rather you need to remain focused on the long term goal to be successful.

Saturday, July 30, 2016

Weekly Roundup - July 30, 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.
3 weeks.  In just about 12 hours our daughter will be 3 weeks old.  It's hard to believe that she's already been here this long.  Things have been going a little bit better with her now that we're spacing out her nighttime feeds and only waking her up if she sleeps for 5 hours over night.  It's really helping out my wife for getting sleep, although it does make her a bit more fussy/hungry in the mornings.  *My daughter, not my wife.

Friday, July 29, 2016

Dividend Growth Investing at Work - Realty Income Does It Again

Concept of how dividend growth investing works
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks Realty Income 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.

Thursday, July 28, 2016

Taking Aim At Target Corporation

dividend growth investing, value investing, discounted cash flow analysis
Target Corporation (TGT) Dividend Growth Stock Analysis 2016
Credit card hacks. Failed Canadian expansion. A bathroom policy. These are just some of the headlines that were going to lead to the downfall of Target Corporation (NYSE:TGT) over the last few years. But you know what? Target still hit all-time highs for sales last year. Not bad for a company that's been written off several times over the last few years.

In the time that I've owned shares of Target Corporation, the dividend payment has increased 67%. That sounds good to me for a company that's had as many problems as it has while I've owned it. This Dividend Champion has increased dividends for 49 consecutive years.
One of the things I like to do at least once a year with my holdings is update my analysis and valuation of the company. This process lets me get reacquainted with the company, its issues, its growth initiatives and most importantly, the value of the company.
Read on to see what makes Target Corporation a quality company and why it's trading at a discount to fair value.
Continue reading the article on Seeking Alpha.

Seeking Alpha - Target Corporation (TGT) Dividend Stock Analysis 2016

Wednesday, July 27, 2016

Wal-Mart Stores Is A Rare Deal On Sale In A Toppy Market

dividend growth investing, value investing, discounted cash flow analysis
By GeneralCheese (Own work) [Public domain], via Wikimedia Commons

Over the last 60+ years Wal-Mart Stores (NYSE:WMT) has grown from one small store in Bentonville, Arkansas into the world's largest retailer with operations in 28 countries. Wal-Mart's annual revenues are now pushing near half a trillion dollars per year. Not bad for a company with such humble beginnings in small town Arkansas.
The 60 years of growth for the company has also been accompanied by 43 years of excellent dividend growth. That gives Wal-Mart Stores the title of Dividend Champion.
A lot has been said about Wal-Mart's demise; however, relatively meager yet achievable growth has the company trading at a discount to fair value. Read on to see what makes Wal-Mart a high quality company and why it's trading at a discount.
How about that dividend?
Wal-Mart has long been one the top dividend growth companies out there and rightfully so with a 43 year streak of rising dividends. Even more impressive is that Wal-Mart had routinely grown dividends by the mid-teens percentage annually.
Continue reading the article on Seeking Alpha.

Seeking Alpha - Wal-Mart Stores (WMT) Dividend Stock Analysis 2016

Tuesday, July 26, 2016

Why I Always Have Direct Investment Exposure to International Markets



Asset Allocation Return Quilt Since 2000
Asset Allocation Return Quilt Since 2000
The Following is a guest post from Bryan.  He writes about his family's Flexibly Independent lifestyle and financial journey on IncomeSurfer.com. He also recently created AllTravelJourneys.com as a place where fellow traveler could swap tips and trip ideas.

It's no secret that since the 2008/2009 financial crisis, the S&P 500 has trounced many foreign market indices.  This relative outperfomance has led some to question if US investors really need to own companies that are based outside the United States.  The topic comes up whenever the US stock markets outpeform international markets for few years. (Remember the late 1990's!)   Some very high profile investors, such as John Bogle, have repeatedly said that US based investors shouldn't bother to invest in companies outside the United States.  I have a great deal of respect for Mr. Bogle, but that is one bit of advice I am not following.  I have always had a small percentage of my portfolio invested internationally, but in recent years I have been ramping up that percentage as investors have taken a negative view on stocks in many international markets.

Monday, July 25, 2016

Net Worth Update - June 2016

June 2016 Net Worth Update
June 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 cooled down a bit during June eeking out a small increase of 0.09%.  Since the majority of my net worth is tied to the performance of the markets my net worth moves in line with the markets.  Although the dividends I receive help to boost my returns and my net worth increased more than the markets so that's a small win in my book.  Of course a record setting month of dividends can do that as I pulled in over $900 in dividends across all of my accounts during June.  

For the month our net worth increased $4,746.05.

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?