The Secret Ingredient of Dividend Growth Stocks

When people learn that I am an income investor it is not uncommon for them to ask why I invest in stocks instead of  other "safer" alternatives such as bonds, high yield money market accounts [MMA] or certificates of deposits [CD]. I generally start with my short answer of, "Dividend stocks have a secret ingredient that makes them a much more desirable investment."

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Weekend Reading Links - October 29, 2017

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:

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One Raise at a Time | Dividend Growth Investing at Work - Visa

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.
Earlier this week the Board of Directors at Visa, Inc. (V) announced yet another hefty increase to their dividend payment.  The quarterly payout was increased to $0.195 from $0.165.  That's a whopping 18.2% pay raise!  Visa is a Dividend Challenger with 9 consecutive years of dividend growth.  Shares currently yield 0.73% based on the new annualized payout.

Since I own 38.263 shares of Visa in my FI Portfolio this raise increased my forward 12-month dividends by $4.59.  This is the 5th dividend increase I've received from Visa since initiating a position in 2012.  Through organic dividend growth alone Visa has increased my annual dividend payments by 136% cumulatively.  According to US Inflation Calculator the cumulative rate of inflation over that same time is just 7.5%.  Talk about outpacing inflation.

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30 years ago…

30 years ago today, while I was getting upset about having to go to another day at school, investors had another reason to be upset:

Source: Ycharts

In a single day, the market lost over 20%. It took over a year for the market to recover from this single fatal day:

Source: Ycharts.

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My Favorite Long-Term Dividend Growth Stocks

These Are My Favorite Long-Term Dividend Growth Stocks With Double-Digits Growth Predictions:

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Dividend Growth Stocks With A Defined-Benefit Pension

This year I turned 55. It seems that with each birthday, I think about and plan for retirement a little more. I have long since resolved that social security will not provide for my needs in retirement (nor was it ever intended to). I am one of an ever-shrinking group that is still covered by a defined benefit pension plan, though it was recently frozen and closed to new employees. So, how should a pension fund figure into my retirement?

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Weekend Reading Links - October 22, 2017

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:

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2 Recent Buys – AQN, FIH.U

Recently I added to one existing position and initiated a new position.

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4 Higher-Yielding Stocks With A Low Price To Book

When looking for value-priced stocks, the Price-To-Book (P/B) ratio is one that I like to consider. P/B is calculated as share price divided by book value per share. Book value is most often calculated as Assets less Liabilities.

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Weekend Reading Links - October 15, 2017

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:

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7 Dividend Stocks With Potential To Double Dividends

Over a long time horizon, high-dividend-growth stocks are a lot more likely to keep pace with inflation. Plus, let’s face it — it’s nice getting a raise every year, and that’s exactly what dividend growth stocks do. With every passing year, the amount of cold, hard cash they put in your pocket increases. 

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Buy And Hold Is Not Buy And Forget

We have all heard it. Mainstream media pundits talking that 'buy-and-hold as a strategy is dead and gone, if ever it was a viable strategy.' Sorry folks, but I am not buying or holding their position on buy-and-hold. Buy-and-hold is neither dead, gone or even sick, but I will concede - it is misunderstood.

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Weekend Reading Links - October 8, 2017

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:

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Blockchain – The Next Onslaught of Disruption

The hype of cryptocurrencies has almost reached fever-pitch as commentators see the meteoric rise of Bitcoin as a bubble. Whether it is a bubble or just the start of a new norm, is anyone’s guess. I can see it going both ways, but I have been intrigued enough to start researching it. It has been my focus over the summer, as I try to understand this new space.

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7 Stocks With Strong Dividend Growth Metrics

When evaluating a company as a potential income investment I look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared to alternative "safe" investments (NPV MMA Differential).

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Weekend Reading Links - October 1, 2017

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:

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