One way to understand how the stock market works is to look at how it was built throughout time. As a dividend growth investor, I focus on picking shares from strong companies that show several growth vectors. I want to make sure those companies not only paid dividend in the past, but that will also continue to pay and increase it in the future.
I started investing in 2003. This gives me 15 years of investing experience including 2 bull markets and only one crash. I’ve followed the techno crash on my computer while I was working on my bachelor’s degree in finance, but that doesn’t really count as I had no money invested back then.
I remember feeling that my first investments weren’t growing fast enough for me. A high single-digit to low teens return each year didn’t appear that impressive back then. Today, I understand that the path through dividend growth investing is a long hike through the mountains. Sometimes you go up, sometimes you go down. It’s important to take pause and admire the nature. Eventually, you will rise to the top and feel like a king. But that takes lots of time and effort.
I thought of looking at 3M Co (MMM) over the past 30 years to give younger investors a perspective of what is looks like to be a long-term focused investor.
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