Saturday, July 6, 2013
Weekend Reading - July 6, 2013
I hope you all had a wonderful July 4th! Independence Day is very special. And not just for getting together with friends and family over a barbeque and fireworks, but because it's a celebration of being in one of the most wonderful countries on this planet. I try to never lose sight of the fact that I'm blessed to not only live a life free of oppression, but also have a nice roof over my head, food in my belly, running water, readily available electricity and access to almost anything I could ever want. On top of that, I get to save prodigious amounts of my net income and invest this capital into high quality companies, ensuring myself a better future.
The weekend is here. It's in the middle of the summer. Life is great, isn't it? I have some great articles I'm in the process of finalizing, so I hope to continue to produce great content for you loyal readers. Again, your support is very much appreciated. This week, I'm going to post my dividend income report from the month of June and it was my best month ever. Cheers to our success, and to building wealth!
Here are some excellent articles from fellow dividend growth investors, frugalists and personal finance bloggers from the past week.
Common Misconceptions about Dividend Growth Investing
Dividend Growth Investor champions this strategy, and has been for years now. This past week, he wrote an excellent article highlighting some of the common misconceptions about dividend growth investing. I largely agree, especially on the point about dividend growth investing only being a viable strategy for older investors. That's simply not the case. It's a wonderful strategy for investors of any age, because in the end we're simply investing in wonderful companies that have competitive advantages. How that could not be a successful way to invest at any age is beyond me, and I'm proving it by putting my money where my mouth is seeing as I'm only 31 years old.
The Story of a Crazy Boy Who Never Forgot His Dreams
My pal Kraig has finally made the leap. He's been saving half his net income for a few years now and decided he no longer wants to be in a situation where he's not happy and fulfilled, so he has quit his job. I'm anxious to see what freedom looks like and what's next. He's making a choice that many of us dream about: quit your job and see what else is out there. It's tough for many, because most people are living paycheck to paycheck. This just goes to show you the power of living frugally and saving high amounts of your net income. It buys you freedom, even if you choose to use it earlier in life.
Omega Healthcare Investors (OHI): Solid REIT At This Price
Dividend Monk analyzed OHI and concluded that, based on the historical growth rate and prospects going forward, OHI is attractive at today's price. OHI is the only other REIT I track currently, along with Realty Income Corp (O) and Digital Realty Trust, Inc. (DLR), both of which I own. OHI offers a higher yield than either of the ones I purchased, but I was concerned with how far it had advanced in such a short period of time. I may own OHI at some point, and that would be the last of my investments in the REIT space.
Recent Buy - General Mills (GIS)
Captain Dividend purchased shares in GIS, adding to his investment. I really love GIS and I think the brands they have are fantastic and will likely generate attractive returns for shareholders for the foreseeable future. If GIS falls a bit in price I would be very happy to snap up shares in this wonderful company.
Question and Answers with the Washington Post
MMM recently posted a great transcript of a little live Q&A he did with readers of the Washington Post. Really great stuff, and he offered up some extremely level-headed response to the questions. Great stuff!
Dividend Update - June 2013
Passive Income Pursuit earned $433.93 in dividends during the month of June, which is really fantastic. Many people seem to be under the impression that you need millions of dollars to make this strategy work, but PIP just earned enough income last month to eat for free and pay a couple utility bills on top of that, and he just started a couple years ago.
Monthly Update - June 2013
Another update, as All About Interest highlights how the month of June treated him. Obviously, it was a phenomenal month as he invested $13,000 of fresh capital and earned $805.19 in dividends. Again, you don't need to be a millionaire to generate significant monthly dividend income. Really great stuff.
TSX 60 Ex Dividend Date + Best 2013 Dividend Stock Update +%
The Dividend Guy highlighted some great dividend stocks, including the ex-dividend dates, current yields and payout ratios. Great resource, especially if you're investing north of the border.
Dividends Really Are Like Snowballs
Tim wrote a great article highlighting how seemingly small actions can build a snowflake of dividends into a giant snowball of wealth that will continue to roll downhill at a pace faster than you could have ever imagined.
June 2013 Dividend Income Update- $10k forward dividend milestone
Accumulating Assets has been busy accumulating assets! He has hit a magic milestone of expecting over $10,000 in dividend income over the next 12 months. It only took him three years to accomplish this, which is really incredible. He has made tremendous progress and I can't wait for the day I hit that kind of passive income.
Full Disclosure: Long O, DLR
Thanks for reading.
Photo Credit: Benoit Mahe