Weekend Reading – September 6, 2014

happyweekendI have to give a big thank you to everyone out there!

I just very recently found out this blog is a finalist for the 5th annual Plutus Awards. I had no idea I was even nominated!

Dividend Mantra is a finalist in the “Best Investing Blog” category. I’m honored and humbled.

I work very hard to create valuable and unique content here, and not just about investing. But investing in wonderful companies and collecting rising dividends is something I’m extremely enthusiastic and passionate about, and so I do my best to spread that enthusiasm because I think this strategy has the power to dramatically change people’s lives.

I aim to inspire people to march toward financial independence, because life is too short not to be free. I believe a strategy of living far below one’s means and investing that excess capital in wonderful businesses that have a history of sharing increasing profits with shareholders in the form of increasing dividends is a great way to replace one’s traditional job income with a more passive source of income, thereby allowing the freedom necessary to pursue life as one sees fit.

You can read more about the Plutus Awards and what they are, but it looks like my own peers nominated me. That’s a big vote of confidence from all of you, so thank you very much. I hope not to let you down. And I plan to continue writing and spreading the word for many years to come.

Unfortunately, I hadn’t planned on going to FinCon (the video on the home page is priceless) this year, which was probably for the best with everything that’s going on lately. But I would love to make it next year, and my significant other is on board to go as well. FinCon 2015, here we come?

In the meanwhile, I’ve compiled a small list of articles that I personally read and enjoyed over the last week. I also threw in a few articles that I wrote, so I hope there’s some value to be had there.

I hope you all enjoy some of the reading material below. Have a great weekend!

These 60 Dividend Growth Stocks Go Ex-Dividend Next Week
Now we know why September is always such a monster month for many of us. 60 dividend growth stocks go ex-dividend next week. Any in your portfolio? I also discussed three stocks that have recently increased their dividends and analyzed a retailer with a 47-year streak of dividend raises.

Side Hustle Series #52: I’m A Lyft and Uber Driver
This was a really interesting guest post over at Budgets Are Sexy.  I’ve been secretly wondering how much money someone could make driving for one of these companies, and it seems like pretty easy income. Although I lived for a few years without a car, I actually don’t mind driving at all. I prefer to walk, bus, scooter, or bike when possible so as to save money, but driving doesn’t bother me. Seems like a pretty sweet side gig, if you live in a city that is served by a ridesharing service.

Growth Update: August 2014
Look at Ryan go! He got engaged, put away some serious capital, and broke a record for monthly dividends. Life doesn’t get much better than that.

August 2014 Expenditures
I always enjoy seeing what other people spend, and it was great to see how/why/where the Frugalwoods spend their money. I guess it just fulfills my curious nature. I also like to know where I stand in terms of my own definition of frugality. I’m always aiming to improve my own spending and find areas of fat that could potentially be trimmed, and other budgets usually give me fresh perspective.

August dividend update
Tawcan had a huge month of dividend income. 21 companies in all paid him dividends, which added up to almost $850. That’s pretty solid part-time job income, and yet he didn’t have to clock in and go anywhere for it. Nice!

What The Heck Should We Think About BP Stock Right Now
Tim brought a balanced and thoughtful discussion to the table about the predicament BP Plc (BP) is in regarding the recent judgement that ruled they were grossly negligent in their actions leading up to the Deepwater Horizon tragedy. I’m no legal expert, so I won’t chime in. But I do know that no matter what happens here, BP will be fine. They’ve got plenty of cash on the balance sheet, and room to take on debt as well to pay it. But this can will get kicked far down the road anyhow, as the immediate appeal proves.

Reasons I’m Happy I’m Not Going to FinCon
Looks like we have another holdout among us! Debs isn’t going to make it this year, either. But instead of wallowing in sadness, she decided to come up with a hilarious “Top 10” list of reasons she’s glad she can’t attend. I don’t have boobs, so I suppose mine would be a “Top 9” list.

Dividend Update – August 2014
JC had a great August, like many of us. Of course, how can you not have a great month when you’re collecting hundreds of dollars in your sleep? He increased his income by 86% from what he received last August. That’s some solid improvement that will allow his snowball to continue rolling downhill.

How high costs are hidden by the fund management industry
I had a mutual fund investment for a very brief period when I first started investing in early 2010. But it didn’t last long, thankfully. I sold out of it and haven’t looked back. It’s a shame how pervasive heavy fees are in the asset management industry, but it’s just one more reason to keep fighting the good fight by spreading the word on this strategy. Looks like Monevator is doing the same by revealing the fees behind the curtain.

Should I have a minimum yield requirement?
Dividend Growth Investor posed this question, which is really interesting. I have relaxed my yield requirements as my dividend income has grown, which relates to my belief on the three stages of dividend growth stocks. I started off by investing in stocks with higher yields so as to get the snowball rolling a bit, but have opened up my portfolio to a few stocks with fairly low entry yields, but higher growth rates, which could propel my dividend income many decades from now. Ignoring certain investments simply because of low yields could cause one to miss out on fantastic investment opportunities, but one still has to balance those opportunities against the need for income generation. A careful balancing act, to be sure.

Challenges Of A Career Student
Syed had a guest post over at Frugal Rules, and I enjoyed this perspective. I don’t believe a college degree is absolutely necessary to succeed in life, as I pointed out in my recent Mint interview. Furthermore, an advanced degree can increase your debt load, making it even harder to get ahead. I’m not saying pursuing a degree isn’t a worthwhile idea, but that it isn’t necessary or even a good idea for absolutely everyone. There is no one-size-fits-all approach to life, education, and success.

Dividend Income Update – August 2014
Another dividend income update, because that’s what we’re all doing this for, right? DivHut had a fantastic month. As I wrote about in my dividend income update, I absolutely love waking up in the morning only to discover I now have more money than I did when I fell asleep. My Dividend Pipeline also updated his dividend income, as did Dividend Growth Journey. Looks like successful journeys all the way around!

Full Disclosure: Long BP.

Thanks for reading.

Photo Credit: gubgib/FreeDigitalPhotos.net

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47 Comments

  1. I love reading other blogger’s income reports, so thank you for sharing those 🙂 they’re all inspiration and I hope that one day I can post the same. One day! Have a good weekend, Jason.

  2. Congrats on the Plutus award nomination! Hugely deserved, especially in the best investing blog category. I love the great mix of posts you have on general investment wisdom and your own specific investments – especially your own detailed rationale for investing, and how you personally look at things (there’s always a few great inspiring ‘life’ topics in there too!).

    It’s awesome to see the increased energy you’re putting into this blog, as well as your continued progress to FI. Look forward to checking out some of those articles on your list this weekend (although I always read Debs!)

  3. Jason,

    congrats on the nomination, first of all. Your blog is really successful and it’s because you care so much. I don’t see many bloggers respond to each and every comment out there. Great dedication, great achievement, well deserved.

    With regards to BP I believe it is very good chance right now to build a large position. If I wouldn’t consider myself a pure Canadian Dividend farmer, I’d buy a huge load of that wonderful company right now (which doesn’t mean I do not buy US stocks at all, but my target is to live only from CAN dividend payers). I went to Europe last December and I saw BP stations all over it. It’s huge over there and I’m conviced they will continue to pay increasing dividends for the next few decades (even if they paused in 2010).

    I did my own weekend reading already Friday night and this morning, and I wanted to share some thoughts about it with you. I read “The Dividend Lie” from Markus Bohme (www.dividendlie.com), who describes “10 reasons why you will never live off your dividend income”. It’s an ebook and it seems pretty new – if you google it, you find a lot of ads for it. I bought it yesterday night and I read it all at once for several hours. Couldn’t put it away. I have to admit some of reasons really scare me, especially the pschological stuff around selling during crises. Did you or anyone heere read the book as well? What do you think about it?

    Bohme describes a needed portfolio of $1.4 mio a typical investor need to live from it, and that you can’t build it with aristocrates only. What do you think of that, Jason, especially since your portfolio is around 200k right now and it seems you already kind of “live of it”.

    A wonderful rest of the weekend,
    Walt

    PS: 14 days to the start of my own blog http://www.canadiandividenddream.com. I’m excited already and look forward to introduce the most convincing Canadian dividend payers to all of you.

  4. As always I appreciate the mention of DivHut. Thank you. Dividend income is what we’re all about here and I love reading the progress of other dividend growth investors. I truly get the same inspiration reading about $10 in monthly dividend income or $1000. It’s all about the long journey we each are experiencing.

  5. Congrats on being a finalist! You deserve it. I find your blog inspiring and encouraging… And simple. My eyes glaze over with many investing posts, but you always seem to have a way to draw me in.

    I won’t be at FinCon either, but as a fellow finalist, I’m targeting 2015!

    Deb and Sayed’s posts were some of my favorites this week, too. So glad you recognized them.

  6. Congratulations! You deserve the recognition because you provide the community with a great service by informing us of a viable alternative lifestyle. I’ve watched your blog grow since pretty much the beginning and it’s been exciting seeing it reach incredible heights.

    Congrats again and keep up the good work!

  7. Nicola,

    Me too! I suppose it’s my voyeuristic nature, but I like seeing budgets. I usually take away some good information on where I can improve, or even possibly lighten up a bit.

    You have a great weekend, too. Thanks for stopping by!!

    Best regards.

  8. Jason,

    Thanks so much. Appreciate the kind words very much there. I put a lot of effort into all of this, so I’m really grateful to have that effort recognized and applauded. I truly aim to inspire others because I think that life can be so much better for so many people out there. No sweat off my back if you don’t enjoy saving/investing or would prefer to work for the rest of your life because you love what you do, but I think many people out there feel trapped. And I’m just trying to set them free.

    Debs’s article was funny. I gotta get working on my Forrest Gump training regimen if I want to go next year. That would save me a lot of money on plane tickets. 🙂

    Have a great weekend!

    Cheers.

  9. Congrats on the nomination. Every time a discussion on investing starts to go in the direction of what it have done in investing and how I have accomplished a significant passive cash flow through dividends, I direct the discussion toward this blog. You are transparent, passionate and truthful about an investment philosophy that a newcomer can relate to and understand. The ups and downs of your journey are relevant, every individual investors experiences them and you personify them. I personally visit your blog to reflect on the struggles I experienced to financial independence. Your work is relevant. Thanks for sharing your journey.

  10. DGJ,

    Thanks! I try to provide value with every article. I’m truly glad that people enjoy my perspective.

    Keep up the great work over on your end, too. 🙂

    Take care!

  11. Walt,

    Thank you. I care a lot about the readers out there because I think there are so many people that can have a better, freer life. We all work hard, and we deserve to have a little more freedom before we’re too old and gray to enjoy it. All the media spin out there that brainwashes people into thinking they need to be multi-millionaires if they want to retire early is just ridiculous. And I’m doing my best to prove it. 🙂

    BP will be fine. I’m not worried about the $18 billion judgement. The can will get kicked down the road. They’ll appeal and appeal. And maybe they settle for much less. Or maybe they don’t and they’ll owe $18 billion 10 years from now. Either way, they’ll be fine as a company. I actually think people are overestimating this litigation risk (the absolute downside is already known) and underestimating the risk of their involvement in Rosneft. But that’s just my opinion. I may add to BP, but probably only if they drop below my cost basis. I’m happy with my position as it stands, and would actually prefer to build out a position in XOM to match CVX and COP. But the valuation just doesn’t seem to be there right now.

    As far as that book goes, I did read it. He sent me a free copy to read and recommend if I enjoyed it and felt it could provide value. But I didn’t enjoy it and cannot recommend it.

    I wish you the best of luck with your blog! And I also wish you the best with your journey. I hope it proves to be just as fruitful as my own! 🙂

    Best regards.

  12. DivHut,

    Absolutely. The numbers are only relevant to a respective person’s journey. Some can live off of $1,000 a month. Others need $5,000 per month. The key is that there are a lot of people out there changing their lives for the better month after month, and slowly gaining freedom.

    Thanks for stopping by!

    Best wishes.

  13. Kirsten,

    Thanks so much! And congrats to you as well. It’s wonderful to be honored like that. 🙂

    I’m hoping to be there in 2015 as well. Sounds like there will be a lot of newbies going next year. I guess we’ll all have to congregate together or something!

    Thanks for stopping by. Have a wonderful rest of your weekend.

    Cheers!

  14. Spoonman,

    Thanks. I know you’ve been stopping by for a long time now. I truly appreciate that level of support.

    I’m doing all I can to spread the word in my own unique way. I think this is just a fantastic lifestyle, but I also see how others aren’t into it. No big deal. But for those looking for a way out of the rat race, I think it’s hard to do much better than what I’m prescribing and living out. If I thought there was a better way I’d be doing it myself. 🙂

    And you’re also proving it out over there. You’ve saved and invested, and you guys are now living off of your dividend income. How cool is that?

    This is a robust strategy that actually works. And I think the haters just get mad that they’re stuck on the wheel. Living below your means and investing in wonderful companies that pay rising dividends won’t get you rich overnight. But it’ll eventually set you free.

    Thanks for stopping by!

    Best regards.

  15. Brad,

    Thanks! I appreciate that support. Directing others that might be able to benefit from this strategy is truly doing them a service. If they “kick the tires” and decide this isn’t for them, then so be it. But I think there are a lot of people out there than can truly benefit from this and change their lives for the better. And helping others achieve happiness through freedom is something I really aspire to.

    I have a lot of ideas rolling around in my head, and I hope to be in a position to keep writing long after I’ve reached financial independence to show others all of the benefits that come from hard work.

    Thanks again! Hope you’re having a great weekend.

    Cheers.

  16. Congratulations on the nomination! Truly a deserving candidate as you have inspired thousands, which is an impact that far exceeds even your wildest imagination I would imagine. Your struggle with jobs, life, family, and otherwise has been been a sensational testimony for those who are in similar positions, trying to fight their way through life and come out ahead. I think regardless of investment style, your writing is applicable and relevant to many, as you’ve shown with some dedication and forward-thinking, anything is possible.

    Keep it up, and you might turn thousands into millions.

  17. W2R,

    I appreciate the kind support and encouragement there.

    It’s been an amazing journey thus far. And to be able to inspire thousands of people along the way is really fantastic.

    Freedom is possible for many. You just have to have an open mind about it. Let’s hope this whole community is opening some minds out there. 🙂

    Thanks for stopping by!!

    Best wishes.

  18. Congratulations with the nomination, Jason. It’s well deserved. Your posts are of great value to me. Before I was not so much into dividend investing. But since I started following your blog that has completely changed. I’m a true believer now. 🙂

  19. I seriously considered going to FinCon this year but then decided against it. Maybe next year.

    Congrats on the nomination! You definitely do some truly inspiring stuff here.

  20. DM,

    Congrats on the Plutus Award nomination. You deserve it. I have learned a ton from you in my short time investing and blogging. Whether it is inspiring me through purchases, investing lessons, or general life topics, I find a lesson in each of the articles. Best of luck with the award and hopefully you bring home the gold!

    Bert, One of the Dividend Diplomats

  21. Congrats on being nominating as a finalist. That is awesome and I have really enjoyed reading your blog even before I started to blog.

    This will help reach even more with the inspiring message of freedom through dividend investing. Maybe more people will join or get interested in the community we have here.

  22. Jos,

    I’m really glad to hear that. Thank you so much.

    This strategy isn’t for everyone. But I think it’s incredibly approachable, especially for those uninitiated to investing in general. And the tangible nature of dividends further reinforces its effectiveness.

    Thanks for stopping by. Appreciate all the support!

    Cheers.

  23. Seraph,

    Thanks. I try my best!

    I hope to go to FC next year. Looks like there might be a lot of first timers in 2015. 🙂

    Hope you’re having a great weekend.

    Take care.

  24. Bert,

    I’m glad you’ve learned a lot here. I’m happy to share what I can. Meanwhile, I continue to learn a lot from everyone else in this community as well. We’re all growing as investors, which makes us all better. 🙂

    I’d love to win. But just being a finalist is a real honor. And I hope a few new readers have now heard of the blog and check it out.

    You and Lanny are both doing great things as well. Keep it up!!

    Best wishes.

  25. SWAN,

    Thanks! I remember back when I first started this blog. There were only a few blogs around discussing this strategy and the potential benefits. I’m so glad the community has expanded dramatically. It offers readers so much more depth with different perspectives and strategies, and improves everyone within the community.

    Hope you’re having a great weekend! Thanks for stopping by.

    Best regards.

  26. Congrats on the Plutus Award Nomination. I had never heard about it before, but I wish you win it.

    And thanks for including my article on minimum yield. Most investors tend to focus on the higher yields, which could be a mistake. Others chase growth at all costs. The truth is somewhere in the middle, yet, it is unique for each situation.

    DGI

  27. DGI,

    Thanks! I’m really honored, as I was apparently voted in by my peers. It feels great to be recognized like that.

    I hear you on yield. The balance is always delicate between yield now and growth later. I’ve actually relaxed my yield requirements as time has gone on, as evidenced by my recent Visa investment. I wanted that yield to get things rolling for me, but I want to ensure solid growth for when I’m living off of my dividend income. It’s a way to have your cake and eat it too. 🙂

    Thanks for stopping by!

    Best wishes.

  28. Congrats on your Plutus nom, Jason! 😉 Well deserved. Thanks so much for linking my NO FINCON post. I’m glad you enjoyed it! Looking forward to meeting you in 2015, then. Sorry to take so long to get around. I’ve been away for the weekend with no internet access (at Dad’s cottage) and we had a busy weekend because we discovered mice droppings. Every cupboard had to be washed and all the contents. Good thing I love cleaning with bleach! ha ha

  29. Debs,

    Thank you so much! I’m really honored by it.

    Sounds like you had a crazy weekend over there! I hope you were cleaning with Clorox (hint from a shareholder). 🙂

    Thanks for stopping by.

    Take care.

  30. Jason,

    You’ve been a great mentor to myself and countless others in our investing journey. This is a well deserved nomination! I also meant to congratulate you on the Mint article, I thought it was awesome that they contacted you! I hope more people keep finding this blog and your message, I’m so happy I did.

    Thanks for the great reading here, I love all the new sites I’m finding through these updates and really appreciate the link to my progress.

    Have a great week!
    ~Ryan

  31. Very well deserved nomination Jason. I only discovered your website a couple of months ago but have enjoyed every single post. Thanks for sharing my guest post as well much appreciated. Take care.

  32. Ryan,

    Thank you. I always appreciate your kind and wonderful support. I’m doing my best to inspire others out there to take control of their financial futures because life is just too short not too, in my opinion. And my example is super easy to follow. The dividend growth is tangible, and you can see freedom approaching one month at a time. That’s incredibly motivating and reassuring. 🙂

    No problem on the link. Congratulations again on the engagement. Very exciting times for you right now, as you’re young, engaged, the portfolio is growing, and your job has been going better than you expected. Life is pretty good, my friend!

    Thanks for stopping by.

    Best regards.

  33. Syed,

    No problem! Enjoyed your take on college, which is similar to my own. I don’t think college is a can’t-lose idea for everyone out there. I personally WISH I would have never gone to college, but such is life. Live and learn.

    Appreciate the support very much. I’m just doing my best to create unique and valuable content that inspires and educates.

    Best regards!

  34. Congrats Jason. I have only been following your blog for short time but have learned a lot from you. You do provide a great service sharing your knowledge and experiences that is hard to find elsewhere.

  35. LFT,

    Thank you. I really appreciate that. I aim to inspire, and I think that there are a lot of new investors out there that are radically changing their lives due to the blog and some of the information I share here. It’s an honor to be in this situation! 🙂

    I hope you’re able to leisure around here pretty soon!

    Cheers.

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