Sunday, June 23, 2013
Weekend Reading - June 23, 2013
Wow, where does the time go? I'm getting some weekend reading out to you readers very late. I've been incredibly busy lately. I had to work 6 days this past week, putting in about 54 hours at my day job. Not fun. All work and no play makes Jason a dull boy!
But enough about that. The first full day of summer just hit us this past week! Although I live in one of the very few locations here in the U.S. (Florida) where the summer is actually our worst season, I lived for many years in the north where the summer is a time for spending time outdoors, the smell of grass, lots of sunshine, blue skies, barbeques, long days at the beach and baseball games. Great stuff. Let's enjoy it!
Here are some excellent articles from fellow dividend growth investors, frugalists and personal finance bloggers from the past week.
35 Top Dividend Growth Stocks
Dan Mac wrote a book that outlines the methodology behind dividend growth investing, why an investor would want to consider this is a viable strategy, some basic terminology and then concludes with his list of what he considers are the top 35 dividend growth stocks based on a number of different metrics he includes in the books. Great stuff and I'm glad to see a number of my holdings on his list. I read the book and it does include some really great information, especially for the beginner. And you can't really go wrong for $2.99. That's less than lunch for most people. You can purchase the book here.
How to crush the market with dividend growth investing
Dividend Growth Investor posted a great article that highlights why dividend growth investing is so powerful over time. Dividends are but just one part of your total return (capital gains + dividends), but are much more important than some give it credit for. This article gives credence to just how powerful reinvested dividends are over time. Dividend growers and initiators have trounced the S&P 500 since 1972.
Why Dividend Investing Will Always Be Better Than Buying the Entire Stock Market
If you need just a little more reinforcement as to why dividend growth investing works, check out this article. Mike put together a great list of reasons why this strategy beats buying the entire market (index investing). I listed my reasons not too long ago and I cane to the same conclusion.
Life is More Expensive When You Don't Have Time
Kraig put together a great post showing you why life is more expensive when you're so busy working that you're outsourcing many other things in your life (entertainment, repairs, food). Always important to be mindful of exactly where your money is going and why. As I said in the comment to this post, a lack of time makes us all crave convenience even more. You're working hard, so you deserve that convenience (or at least that's what you tell yourself). But what if you weren't working so hard anymore? How would your life change then?
Standard Oil: The Different Fates Of The Three Rockefeller Brothers
Tim highlighted some of the reasons behind John Rockefeller's motivation to become rich, and how he used that relentless drive to not only become obscenely wealthy, but how his bigger-than-life personality shaped the oil industry and the lives of his own family.
Finding Great Value In The Energy Sector
A phenomenal post here highlighting some of the value that's currently left in the energy sector. I agree wholeheartedly with Chuck here. Some of the biggest value in the market currently is within the energy sector. I would also argue that big tech is also cheap right now.
General Electric: Becoming Your Daddy's Dividend Stalwart Again
Tim published this article on General Electric Company (GE) just one day after I initiated my position in the company. We must have been completely on the same page here because our reasoning is very, very similar. I think GE will do very well over the next decade and then some.
Investors, Take A Look At This Leading International Tobacco Company
Guru Focus put together a great list of the reasons why I love Philip Morris International Inc. (PM). It's my biggest position and I currently think it's attractively priced. The only reason I haven't been purchasing more shares is because it's already over 7% of my portfolio and I'm actively working that number down to a more comfortable 5% or so moving forward. Although I'm a huge fan of the company I don't want any one business to have an overwhelming effect on my dividend income.
This Blue Chip Stock is Poised To Double
This is a great article listing some of the biggest strengths of Intel Corporation (INTC) and why the stock is very undervalued here. I believe in Intel's future, and that's why it's one of my biggest holdings (my only true tech holding). I'm not a fan of technology companies as a whole, but I think INTC has a bright future ahead.
Recent Buys and a Dividend Increase
Passive Income Pursuit highlights his recent purchases in Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX). I like these buys, as I'm a huge fan of supermajors right now. I'm currently looking at these two myself, as well as RDS.B and BP.
Waste Management (WM) Unappealing for 2013
Dividend Monk put together another fantastic analysis on Waste Management, Inc. (WM) and clearly listed his reasoning for why he feels it is an unattractive investment at today's prices. With underwhelming growth over the last 7 years, I can't help but agree completely. This is a reason I have never invested in this company.
Mr. Money Mustache and Jim Collins: An Interview
This was a great interview with Mr. Money Mustache and Jim Collins. It had a lot of free flow conversation on savings rates, happiness, stoicism, modern life and the pursuit of financial independence. Good stuff!
7 Reasons why you will save money and live better by cutting TV consumption
My Financial Independence Journey gives us some great reasons to cut down on television consumption. I don't have cable TV, so my use is very limited. As of now, my HDTV indoor amplified antenna only gets about 3-4 channels reliably so my consumption of television is hampered. However, I do spend a lot of time online so I wonder if I've improved my life at all? I think so because time on the internet is active, engaging and making my life better (by blogging, building wealth and learning to become a better person). Typically, television is very passive and mindless.
BP Dividends: Why I'm Bullish
Financially Integrated talks about why he's bullish on the future of BP (BP), despite the ongoing litigation regarding the Deepwater Horizon spill and the legal ramifications of such. I think BP is very cheap here, and I don't believe a company with over $400 billion in revenues is going to go bankrupt over this. The balance sheet is strong and the company can easily take on $20 billion or so in debt. However, one can also look at Royal Dutch Shell plc (RDS.B) as a supermajor that has a similar valuation without some of the legal headaches.
Full Disclosure: Long GE, PM, INTC, CVX
Thanks for reading.
Photo Credit: Benoit Mahe