Weekend Reading – August 14, 2011

Another weekend is here, and it’s another beautiful Sunday afternoon here in Florida. Mr. Market has been very moody lately, and it seems that even a whisper of good or bad news seems to send him flying. These kinds of mood swings can provide ample anxiety for some investors, but for me it provides an opportunity to purchase quality on sale.

I tend to be pretty close to fully invested at most times, but did have a little dry powder for a downtrend in the market. I did deploy excess capital a little early in the downdraft with my purchases of Chevron and ConocoPhillips, but looking out long-term I still feel I received good value for my purchase price. And that truly is the name of the game.

In the end, as my frugal nature would probably tell you, I believe that the money I save by not engaging in the “impress my neighbor” game is the best rate of return I’ll ever receive. And it’s with that rate of return I’ll continue to reinvest with.

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

Now is the perfect time to buy dividend stocks
Dividend Growth Investor explains why this is the perfect time to initiate, or add to, positions in dividend growth stocks. I couldn’t agree more and always walk the walk. I added to my energy holdings very recently.

10 Dividend Stocks With A 10% Yield In 10 Years
D4L provides a list of 10 dividend stocks that are consistently raising their dividends to the point of receiving a 10% yield-on-cost within 10 years. I’m long quite a few on this list and look forward to rising passive income streams as my investments grow.

Q2 Stock Market Outlook and What is Coming in Q3
The Dividend Guy reviews the second quarter of 2011 and looks forward to what we can likely expect for the third quarter of this tumultuous year. I, for one, certainly don’t believe we’ll see any more quantitative easing from the Fed and I’m very happy about that. I think that ended with QE2, and I don’t think we need equities propped up. I hope we see the chips fall where they may and that makes me a happy value investor. I would have been better off by waiting for QE2 to end and buying in on the likely downturn, but you know what they say about hindsight…

Recent Buy…
Dividend Partisan gives us a look at his recent purchase. He added to his holdings with Waste Management. I think this is a smart move, as trash collection is a business that isn’t going anywhere. As a large consumer nation, we’re pretty good at producing waste. I’ve been a little concerned about the valuation in the past with WM, as well as the declining revenues and EPS over the last 5 years. It is trending into value territory now, however, and you have to love that yield!

July 2011 Dividend Income Update
My Own Advisor discusses his recent dividend income and why it’s important to concentrate on income especially when the markets are going crazy. Those dividends provide a certain amount of calm in the storm. I couldn’t agree more!

A Short Story of Successful Dividend Investing
The Dividend Pig shows us a quick synopsis on how successful long-term dividend growth investing can be. I think this perfectly illustrates what sticking to a plan can blossom into. I think I should just go ahead and mail JustSayin3363 his cut whenever I buy my toothpaste!

Investing During Market Declines
Dividend Ninja shows us why market declines and bear markets are the best time to purchase equities. Even with cheaper equities, patience still pays off as with increased market volatility it’s sometimes difficult to get a feel for where the market is heading.

Step 9: Allocate your Assets
Dividend Monk concludes his 9-step series on building a dividend portfolio. He shows here why it’s important to maintain a properly diversified portfolio through asset allocation. Although I currently have no exposure to bonds, this is mostly a product of the low interest rate environment we are currently in. Once rates start to rise I’ll likely allocate new capital towards a small percentage of bond holdings.

Beginning Investors: Consider Direct Stock Purchase Plans
DSO lays out some pros and cons to direct stock purchase plans. I don’t personally engage in any, since I prefer purchasing (and selling) at will. These types of plans could be great for someone just starting out with a small amount of capital, however.

Becoming less productive and less competitive
Jacob writes a fascinating post on becoming less productive. People sometimes have difficulty with voluntarily producing less as we naturally have a need to feel wanted and validated. By choosing to retire early, one likely will have a natural inclination to be less productive and if one doesn’t, it may require a change in frame of mind.

Thanks for reading.


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