Very recently, Mike over at The Dividend Guy Blog spearheaded a project to get fellow dividend investment bloggers together to form what is now called the Dividend Growth Index. You can find more information here, but basically the index is a group of stocks picked by a total of seven bloggers, who picked three stocks each for a total of 21 individual stocks.
The point behind this index is not a stock picking contest to see which equity gains the most. The real success with dividend investing lies behind the power of compounding over time. Each blogger will keep track of his three stocks, collect the virtual dividends in a “cash account” and reinvest them back into one of the companies annually. We’ll be posting quarterly reports so everyone can follow along in the fun.
I think this is going to be really interesting! The following bloggers are all participating; I’m including a brief synopsis of each blogger’s background along with their three picks:
The Dividend Guy has an extensive background in investing and has one of the more well-known dividend blogs. He has a pretty large dividend portfolio and focuses on dividend growers. His three picks:
National Bank of Canada (NA:T)
The Passive Income Earner runs a great blog that has a lot of individual stock analysis, personal finance tips and he keeps track of his passive income as it builds over time. His three picks:
Canadian National Railway (CNR:T)
Canadian National Resources (CNQ:T)
Dividend Monk is not actually a monk. However, he does propose a minimalist approach to life which means living below your means and building your wealth through investing. His three picks:
Energy Transfer Equity (ETE:US)
My Own Advisor is a DIY investor that has some great information on dividend investing as well as index investing. You can get the best of both worlds here. His three picks:
Abbott Laboratories (ABT:US)
CML Healthcare (CLC:T)
The Dividend Ninja is not a real ninja, if you see a theme. He does propose investing like one. He likes to be smarter than his opponent (the market) and strike quick. His three picks:
Husky Energy (HSE:T)
The Wealthy Canadian is living my dream: he semi-retired at the ripe age of 33! He has attained financial independence and he tries to help others attain it too. His three picks:
Royal Bank of Canada (RY:T)
Daylight Energy (DAY:T)
Progressive Waste Solutions (BIN:T)
Yours truly. I’m trying to become financially independent by 40 years old on a middle-class income by living frugally and investing monthly in dividend growth stocks. My three picks:
Philip Morris International (PM:US)
Procter & Gamble (PG:US)
I think this is a solid grouping of dividend stocks. You’ll see a lot of picks from Canada here, as quite a few of the bloggers participating are actually from Canada. I’m pretty sure Dividend Monk is the only other American (besides me) participating in this project. This index has a pretty decent average dividend yield of 4.26%. That’s over twice the 10-year Treasury yield!
I’ll be posting an overview of my three stocks, as well as why I picked them, in one week.
Full Disclosure: I’m long PG, PM, COP, AFL, WMT, PEP, ABT, KO, INTC. You can see all my holdings here.
Thanks for reading.