Weekend Reading – July 30, 2011

I’ve learned a few things about dedication this past week; dedication to staying true to the plan. I’ve invested money twice this month, even as the markets decline daily. I believe in the long-term fundamentals of any company I invest in, so the debt crisis is a speed bump on a long trip. Declining markets offer an opportunity for me.

When does dedication become blind allegiance? I don’t know. As I was riding the bus home this past Thursday, I peeked out the window and noticed a co-worker stopped at a gas station and filling up his tank. I chuckled momentarily, realizing my ride home was only costing me 75 cents. Of course, 10 minutes later, as I was about to get off the bus it started pouring. The afternoon thunderstorms are pretty infamous down here in Florida. I opened my umbrella and grabbed my bike. I rode my bike with one hand on the handlebar and the other hand holding my umbrella tight. I’m sure people driving past me must have thought I was crazy.

Dedication.

Here are some excellent articles from fellow dividend growth investors, frugalists and personal finance bloggers from the past week.

Facts about the US Debt and Weekend Reading 7/28/2011
Dividend Monk wrote a fantastic article that highlights some of the facts about the debt situation we are in and provides some unique perspectives on how to solve it. Really great ideas here, as they cut through some of the politics that surround this issue. Let’s see if our egotistical politicians adopt any of these great ideas.

A Look At My Latest Trades
The Dividend Guy reviews his recent sale of RIMM and subsequent purchase of KO. I love Coca-Cola, and although it represents a small portion of my overall portfolio, I think it’s one of the best companies on the planet. I hope to have capital available at an opportune time to increase my KO holdings.

My Circle of Competence
My Own Advisor discusses why he invests in companies he can understand. This is great advice. There are a lot of companies out there with business plans that I don’t understand. Sometimes the product doesn’t make sense or the way they generate revenue is over my head. At any rate, it takes a big person to say “I don’t understand this”. Leave your ego at home when you’re investing.

Automatic Data Processing (ADP) Dividend Stock Analysis
Dividend Growth Investor analyzes ADP, and concludes it is a little rich in valuation right now. I agree with him. While I think it’s a fantastic dividend growth stock and a great company, it is steeply priced right now and I would also wait for a pretty decent pullback before initiating a position.

8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
D4L screens the dividend aristocrats for stocks that have at least a 3% yield and have raised their dividends for at least 35 consecutive years. This is a great list to consider building a core around, and I’m long a few on this list.

Why Investing Isn’t Sexy
Kanwal Sarai highlights why dividend investing isn’t very sexy. It’s boring and simple, which is why many of us fellow dividend investors love this investment style. Sometimes boring is beautiful!!

Marginal earnings, when working is no longer worth it
Jacob discusses marginal earnings and when enough is enough. Most people always want more…more of everything. It’s when you realize that more doesn’t necessarily make you happy is when you probably truly become happy.

Colgate-Palmolive Company – Dividend Stock Analysis
Selling Theta analyzes Colgate and concludes that it is not a buy right now based on the rich valuation. I agree here. It’s a wonderful company and sells wonderful products that people usually don’t trade down on, however it is expensive right now. A significant pullback would open up an opportunity on this one.

Thanks for reading.

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