Saturday, June 4, 2016

Starting point

Hello everyone, the title of this post is "Starting Point" and it pertains more to me starting on this blogging journey about my foray into Dividend Growth Investing, and not so much the start of my investing career. I have been investing for a couple years now, but only recently saw the light with respect to DGI a couple months ago.

I started dividend investing a couple years ago, with the goal of putting my money somewhere where it can be working for me, as opposed to putting it somewhere where it would be doing the opposite, such as in a depreciating asset (ie, something consumer-related). A couple of places had the suggestion of investing into dividend stocks, and after looking into it, I liked what I was seeing where one had the opportunity to get over 10% back on his/her money in regular dividend payments. Of course, with this thinking, I became a yield chaser. I put my money into a few risky investments, mainly because they were offering over a 10% yield. Back then, I had no idea of what a payout ratio was. I was able to build up positions in these companies to where I was being paid over $20 per quarter as a result. However, in the last few months in my reading, and delving into the worlds of personal finance and passive income generation, I came across the world of Dividend Growth Investing, which appears to blend 2 areas of investing that appeal to me, growth in value, as well as growth in what you are being paid. The more I read on the subject, the more it made sense to me. So, with about 25 years remaining until I hit the accepted retirement age, although I am starting late, I decided that it was a good time to make the switch and also become consistent with my investments (when the market had gone down in the second half of 2015 and the first couple months in 2016, I stopped my monthly deposits into my brokerage account and sat back on the sidelines). After doing some more reading, I decided that I needed to be in it for the long haul, and in it consistently to really make this work.

Back in March 2016, I officially made the switch to DGI, and have built up some small positions in dividend growth stocks. With the help of various resources, I have accumulated shares in what I feel to be better companies for the long haul. The yield is not as large, but now I know what a payout ratio is, and have the confidence that the dividends will continue to be there for years to come, when I'll actually need the money.

My dividend income for the month of May 2016 was $59, and I look forward to steadily increasing it. Onward and upward!

2 comments:

  1. Woo hoo! Can't go wrong with the divis. Looking forward to following your progress.

    JT

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    Replies
    1. Thanks, JT Divis! I look forward to sharing, June will be a good month, as a few ETFs have their divi payments next week, in addition to my DGI stocks.

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