I've been seeing a lot of posts that are annoyed with the focus on index fund discussions, so I wanted to open the table to my personal pursuit into Dividend Growth Investing. I'd love be interested to hear your thoughts/comments/suggestions.
My DD has led me to making this master spreadsheet for what to invest in, in 2018. Feel free to copy it and make changes for your own purposes.
Here's my checklist for the stocks I've included:
-
Div/Yield OVER 2.5%
-
P/E under 25
-
Div. Growth of 25+ yrs
-
I Understand the Product/Service
-
Product/Service will be needed for 25+ years
Breakdown of Categories
Heavy Hitters = Hit all those items
Up To Bat = Missing ~1
Swing for the Fences = Missing ~2
The goal is to have a portfolio that my dividends will one day equal what I'd like my 4% withdrawal rate to be. Instead of selling off shares from an Index Fund, I can just keep my shares and have the dividend be my passive income. I'm sure many of you will debate this, but withdrawing at 4% feels like Dollar Cost Averaging in REVERSE. A couple bad years in a row will do the opposite effect and take a huge chunk out of what future 4% withdrawals will look like.
This is a Buy and HODL ;) strategy. I don't plan on selling shares unless their dividend takes a massive hit. Hopefully in 15-20+ years this will be a huge chunk of my retirement.
Yes, I realize there are many more metrics I could be referencing. I’m still new at this and I thing this is a solid foundation to work off of, but I do plan on growing this strategy over time.
Here's a list of references that led me to this investing strategy
BOOKS
The Ultimate Dividend Playbook
Websites
Drip Investing -- A much more comprehensive list then what I've put together
Simply Safe Dividends -- An excellent resource into WHY to pursue Dividend Investing
Dividend.com -- Great for checking years of growth and payout ratio
Blogs
Dividend Mantra - There's an additional sheet with their Portfolio
Dividend Monk - There's an additional sheet with their portfolio and personal analysis
Submitted February 14, 2018 at 02:33PM by Secret_Work_Account http://ift.tt/2HhMOBC
