I’m in the process of building a do-it-yourself dividend collection machine. Why?
Instead of buying the latest iPhone, drinking overpriced lattes, or throwing away my hard earned cash on a myriad of other unnecessary items, I’m investing that money in the world’s most successful companies that pay dividends and should be in business for the remainder of my lifetime and beyond. I do this because there’s a definite case to be made for dividends.
I invest when the monthly close for a stock is at least at a 1 year low or more, and then plan to hold “forever” so that in the future the “business” will become my son’s and he can do the same. Here’s the basic idea.
At the end of each month, I will list stocks that are at attractive investment points along with certain price characteristics associated with those stocks. I hope you’ll find it informative and helpful should you decide to create your own dividend collection machine. It’s my method to combat market madness.
This will be an ongoing process. I’m not saying it’s perfect or the only way to go. But I am saying it’s a simple approach that basically forces you into the “buy low” mantra without the “sell high” ending. It’s a framework that you can choose to alter (or not) however you see fit. It’s your money after all. Patience and consistency are key. If you give it time to work, I feel certain you’ll be happy you did.
And if you choose to reinvest the dividends you collect along the way, you’ll find that over many years your dividends will begin to grow geometrically. Essentially you can turbocharge your dividends by reinvesting.
Here’s an Excel file with some examples of the reinvesting effect.
Still not convinced. Check this out.
I’m in no way affiliated with the financial services industry. What you do with the information provided is your decision and yours alone. There’s my disclaimer.
Finally here’s some resources that I use to facilitate the process.
A list of the current Dividend Kings, companies who’ve increased their dividends for 50 years of more.
A list of the current Dividend Aristocrats, companies that have raised their dividends for 25 years or more.
An extensive list from Dividend.com of companies that have increased their dividends for 10 years or more. (It may take a few seconds to load.)
Thanks for dropping by and hope to see you again. Here’s my current watch list.