Opportunity In Philip Morris International (PM)

This article originally appeared on The Div-Net on January 19, 2012

Philip Morris International Inc. (PM) is one of my favorite dividend stocks. It manufactures and sells an addictive product (cigarettes) with exceptional margins. It does business everywhere but the United States, which is where the domestic company Altria Group (MO) does business. This provides them with great exposure to emerging markets whose discretionary income is only set to rise over the next couple decades.

Recent weakness in PM shares may provide a long-term investor a nice opportunity. It is down 5.25% over the last trading week, and down 3.48% today. This appears to mostly be due to some analyst downgrades amid reduced EPS expectations. I think if you look out over the next 10-20 years, PM will be a strong performer. It currently yields 4.20%, and pays a quarterly dividend of $0.77 per share. The debt load is a little concerning, but the strong cash flow provides PM ample opportunity to keep debt in check while still continuing to raise the dividend.

Recent Buy

The markets have been strong right out of the gate and we're starting 2012 off with a bang. The S&P 500 is up 4.84% YTD just over 3 weeks into the year. Generally when the markets are this strong, us value investors like to wait on the sidelines with a heavy dose of cash and wait for a pullback. I do consider myself a value investor, and dividend growth investor, however I also believe in purchasing shares of quality companies at the most attractive opportunities available every single month. When the market is down, I purchase quality at an attractive long-term price. When the market is up, I do the same thing. I don't believe in my ability to forecast the future, so instead I rely on the power of averaging my capital into the markets. I walk the walk when I talk the talk, and I made another round of purchases very recently.

Ever Consider Semi-Early Retirement?

One of my biggest goals in life is to have the freedom to retire early in life, if I so choose. I plan to be financially independent by 40 years old, earning passive income from investments I'm making now. I've said many times in the past that this is no noble goal, and may not necessarily be a better way to live than someone who chooses to spend most of their money "living for today". There is no doubt that I am delaying gratification. But, what if there was a way to balance earning yourself more time and living in the moment? What if you could have significantly more time to do the things you'd like, but not have to sacrifice for years on end toward that goal of more time? This is where the idea of semi-early retirement comes into view.

My New Ride - Part II

My New Ride!

Last May I wrote an article titled "My New Ride" and it was a proclamation to the world about my intentions and the amount of effort I was willing to put into my journey toward financial independence. It basically highlighted my decision to sell my car and rely solely on a bicycle and local bus system for my transportation needs. I gave it a fair shot. I've spent the last seven months using the bus and doing my fair share of walking. This taught me a lot about perseverance and independence, and it shows me just how much spirit an individual can have when one wants to express it.

My Goals For 2012

I'm a big fan of having goals. Goals give you something to shoot for, they're a target so that you can track your progress. Putting goals down on paper, and then showing them to the world does a couple things. First, by actually typing these goals up I realize them in a physical form. If the goals only exist in my head they're easy to forget. Second, by showing them to the world I obviously want to save face and do my best to reach the goals as my pride is on the line.

I try to make goals challenging, but achievable. This sets the bar high and forces me to do my best, but also reinforces positive results. Without further ado:

2011 Goals Reviewed

With 2011 behind us I wanted to take a moment to review my goals I set forth for the previous year and see how I did. I'm pleased to say that for the four goals I set out to attain at the beginning of last year I achieved all of them! They were pretty challenging, and to be honest I didn't think I'd achieve them all. I was determined and worked hard and because of that I can look back and proudly say that 2011 was a huge success.

Income/Expenses For December 2011

Each month I will post my income/expenses for the previous month. I track every dollar in and out, so what you see is exactly what I earned and spent (rounded to the nearest dollar).

Start Off Your New Year Right

This article originally appeared on The Div-Net on December 29, 2011

Get Started!

What better goal to have for 2012 than to start a diversified portfolio of dividend growth stocks that will reward you for being a loyal shareholder by distributing quarterly, semi-annual or annual dividends? Building a sustainable passive income stream by investing in quality businesses that have an economic moat, a lengthy history of rising earnings and dividends, solid balance sheets and are trading at attractive valuations allows you to take that income and reinvest it back into dividend growth stocks or use that income stream for other ventures. It is important to remember that not only do you receive a portion of earnings in the form of dividends from these companies, but these companies also re-invest earnings back into the company to continue to grow the business. This will lead to higher earnings, and therefore a higher share price which leads to an increase in the market value of your investment.

Dividend Growth Index Update - Q4 2011

Well, I hope my readers haven't forgotten about the Dividend Growth Index. This was in index started in September of 2011 and involved many fellow respected investment bloggers. We all picked three stocks each, for a total of 24 companies comprising the index. We are all tracking our individual positions, and the index as a whole to show the power of long-term compounding. You can read a full synopsis of the performance so far here.

2012 Best Dividend Stocks

Yours truly has agreed to be part of a friendly stock picking contest among some fellow respected finance bloggers. I'm excited and looking forward to seeing how all of our picks turn out. This is the 4th annual iteration of this contest, but the first time I'm competing. Let the fun begin!

I'm including what I feel are the best dividend growth stocks for 2012. In the end, it's terribly difficult to try and ascertain what the return will be for individual stocks over such a short period of time. One year in investing terms is an extremely short time frame. Due to such, any dividend growth investor worth his salt is in it for the long haul. Every single time I invest money in a company, I plan on owning it forever...unless the company's fundamentals change significantly. Changing fundamentals and economic climates is a primary reason one must continue to monitor a portfolio and individual positions. Companies change, people change and so with it portfolios change.

With that little disclaimer being said, I hereby present my picks for the 2012 Best Stocks Contest.

Freedom Fund Update - January 2012

Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it's aptly named. My portfolio is my way to freedom; freedom from working at a job I don't enjoy to purchase goods I don't need to impress neighbors I don't care about.

The markets have been extremely resilient lately. I think investors are a little too optimistic about the overall state of the economy and some of the sovereign debt issues. This could mean that there is a market correction just around the corner, which would be more than welcome by me. I always look forward to corrections as a value investor, as that gives me the opportunity to purchase more shares for my money.