Do you have whiplash yet?
I actually visited Cedar Point over the summer, and they sport some of the best roller coasters around. But the stock market has been attempting to give some of those rides a run for their money lately. Up, down, and back around.
Of course, these movements are really nothing when you compare them to major corrections of yesteryear.
Either way, this is exactly why I focus on the rising dividend income my portfolio generates. I’m pretty much numb to stock price fluctuations at this stage in the game, but new dividends that hit my brokerage account never seem to lose their luster. I just never tire of seeing fresh cash flow hit my pocket. Call me crazy.
On that note, I decided to add to my position in one of the two companies I just wrote about, and you can probably figure out which one that is. Just another move to increase future cash flow by buying a stock at what appears to be a a good value today. I do love to increase the size of my outstanding business partnerships as capital and value allows.
In the meanwhile, this weekend is huge. My significant other and I are celebrating our fifth anniversary tomorrow. I met Claudia my very first day in Sarasota back in 2009, just after moving here from Michigan, and we’ve been together almost ever since. She’s been extremely supportive as I’ve transitioned from a somewhat “normal” guy to one who’s almost obsessed with frugality, investing, and achieving financial independence. Luckily, she understands and appreciates the value in the journey and the end result even if she doesn’t totally share my conviction.
I’m currently re-reading Warren Buffett’s seminal biography, and it appears to me that Susan Buffett wasn’t always enamored with Warren’s obsession with investing. Frankly, who can blame her? It also seems she wasn’t such a big fan of frugality, especially once the Buffetts achieved a level of wealth that really required no more effort for money. I’ve read multiple passages that points to her enjoying social outings, shopping, and giving – all while attempting to poke Warren into spending a lot less time on increasing wealth and a lot more time enjoying the wealth. So this was perhaps a point of contention between the two of them. Again, who can blame her? Most people would love to have substantial wealth and actually enjoy it to a degree, and I can’t say I’m not totally against that line of thinking. But Warren is definitely cut from a different cloth (perhaps why he went into the textile business?).
However, I’m lucky in that Claudia is also quite frugal and champions my cause. She takes the bus to work. Shops rarely. And she enjoys free activities like I do – a DVD rental and pizza on a Saturday night or a lazy Sunday afternoon at the beach are both preferable ways for us to spend time together, regardless of how much money we may eventually acquire.
Anyway, I’m looking forward to our weekend together.
In the meanwhile, I’m including some great articles that I recently came across and enjoyed. I’m sharing them with you readers in the hopes you enjoy them as well. Have a great weekend!
These 7 Dividend Growers Just Announced Dividend Hikes
I exposed seven dividend growth stocks that recently increased their dividends to shareholders. This is what dividend growth investing is all about. Dividends that get increased, which get reinvested back into stocks that are also paying and increasing their dividends, thus increasing cash flow even more. A virtuous cycle!
Retired on $30,000 a Year and Loving It
I just love reading about these success stories. I’ve received my fair share of criticism and doubt in regards to my plan to become financially independent on so little, but it can be done. Just because the media is more obsessed with what the latest Kardashian is up to doesn’t mean there aren’t others out there living the dream on very little. They just aren’t reported on as much because there’s nothing to sensationalize. Stick with the plan, guys.
Undervalued Dividend Growth Stock of the Week
Every week, I write about an undervalued and overvalued dividend growth stock of the week. I could have picked better timing for this article, but the valuation simply improved even more. And I haven’t let that go unnoticed.
Recent Buy – Core Laboratories (CLB)
Henry just picked up shares in this oil services company. I haven’t heard of it before, but the metrics are awfully impressive. The yield is a bit low, hampered additionally by the foreign dividend income withholding tax. However, this has all the makings of a great investment.
Time in the market is more important than timing the market
Dividend Growth Investor reminds us of this timeless and sage advice. Sure, you could do better than systematically buying and holding by timing the market exactly. But you don’t have a crystal ball and he points out that you wouldn’t end up that much better off even if you did have one when we’re talking about high-quality companies over long periods of time. As always, focus on what you can control.
How IBM Investors Should Feel About The Stock Repurchases
Tim penned this great piece that offers some context in regards to IBM’s share repurchase program. I totally agree with this premise here, and I honestly don’t get the general vitriol that IBM specifically seems to get in regards to their buyback activity. I’m praying they’re buying back more shares than ever right now.
Everyone Should Adopt This Alternative Definition Of ‘Retirement’
“When you have achieved enough financial wherewithal to eschew any and all income-producing activities other than those you want to pursue, in my mind you are “retired.” In other words, it is the absence of needing to work, not the absence of working that defines retirement.” – Great stuff. Just plain great stuff. People get hung up on the R word too much, but it’s really quite simple. I think the issue is partially that the concept of retirement hasn’t actually existed for all that long, and so just when people get comfortable with the idea of what it is and what it means we’re already redefining it.
The Intersection of Dividend Growth Investing and Financial Independence
JC put together this great spreadsheet that gives you an idea of how long you have until you reach your “crossover point” into financial independence. I personally played around with it and it delivered a result indicating that I have eight years to go until I’m financially independent. Seeing as how I’m currently 32 and aiming for FI by 40, I’d say I’m in good shape!
These 20 Dividend Growth Stocks Go Ex-Dividend Next Week
I took a look at one of these 20 stocks in particular and concluded that this is not a good time to invest. I’m surprised this major and diversified food manufacturer has posted such poor numbers over the last decade, but it’s wonderful that there are over 550 other dividend growth stocks to consider.
Trades – General Electric (GE) Purchase
W2R averaged down on GE at a great price here. I continue to like GE and will add as capital and portfolio allocation allow.
Middle-class adults have $20K saved for retirement
It seems a recent survey told us no new news. People just aren’t taking retirement seriously. I don’t find this particularly surprising or alarming. However, these same people may have to deal with the repercussions of having to either work until they’re extremely old or they’ll have to learn how to get by on Social Security (which isn’t designed to fully fund a retirement). Actions and consequences. I did find one quote in the article as particularly…umm…enlightening: “Research shows that the No. 1 factor in saving for retirement is your contribution rate, Ready says.” So research shows that not saving money will lead to a lack of savings. Very interesting.
The Bloggers’ Dividend Growth Portfolio: Popular Dividend Growth Stocks Trading On U.S. Exchanges
Ferdi did a great job compiling this list. If you’re looking for a fresh shopping list for your BB gun, this could be it. I don’t necessarily think a popular stock is a good stock, but it is somewhat reassuring to see certain stocks pass the sniff test from a number of different investors.
The man who taught Warren Buffett how to manage a company
I thought this was a really unique and interesting article. It contained some information I wasn’t yet quite aware of, and I’ve read through a lot of Buffett stuff in my time. Great read if you have a little time this weekend.
Mind your dream
Stef reminded us to keep our eyes on the prize. And one of the best ways to do that is to formulate good habits. Just like bad habits can literally destroy your life, good habits can improve your life far beyond your expectations.
The Death of IBM
I can’t say I agree with the hyperbole, but I appreciate the opposite viewpoint. It looks like Roadmap2Retire won’t be investing in IBM anytime soon, which simply leaves more shares on the table for me and others that think the valuation is compelling. As I stated above, the stock market is great in that there are so many opportunities out there. You can literally invest in thousands of different companies at any time – hundreds of them being what we call “dividend growth stocks’. Thus, don’t make the mistake of investing in a company that you’re not totally comfortable with. If you really think IBM is dying then you’re best off staying away. However, I believe IBM is just fine and basically priced for almost no growth at all here.
Full Disclosure: Long IBM.
Thanks for reading.
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