When it comes to building a retirement portfolio, the dream is simple: an income stream that lasts as long as you do. Yet, achieving this requires a careful balance between risk, growth, and sustainability. At Dividend Stocks Rock (DSR), we advocate for an often-overlooked but powerful strategy: investing in low-yield, high-dividend-growth stocks. These companies may not offer the immediate gratification of a high dividend yield, but their potential for long-term growth makes them a cornerstone …
Investing in Real Estate Through REITs
Real estate investment through REITs (Real Estate Income Trusts) is not only popular because REITs distribute generous dividends, but also because they’re easy to understand. We can easily picture an apartment building or an office tower and imagine tenants paying their rent. Investors are willing to purchase units of those businesses in exchange for income and peace of mind. REITs are landlords; they own and manage real estate in exchange for rental income. They have properties such as …
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When to Cash in on Your Winners
All investors share a goal. Making profit. How do you know when to cash in on your winners? A stock is up 20%-50%-75%. Will it keep going up? Is it about to crash? You feel you should sell, but you like that stock… Selling winners isn’t easy. Some put a limit on the stock price gain, for example, when they’re up 50% they sell the position. As a dividend growth investor, I choose stocks I want to keep for a long time, not for a quick buck. When you hold on to solid holdings for a long …
4 Steps to Reduce Risk in a Near All-Time-High Market
Four steps to reduce risk in your portfolio ahead of whatever happens next, and to keep investing confidently even with the current high market. Yes, the market is high, almost the highest in the last 34 years except during the tech bubble in 2000. The Shiller CAPE ratio compares market earnings over time. It shows that the overall market is trading at nearly 31 times earnings. In other words, the entire market’s P/E ratio is 31. That’s expensive, and rattles a lot of investors. Never miss …
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Understanding the Financial Services Sector
The Financial Services sector is both exciting and scary for dividend investors. On one hand, you have solid banks that are the heart of our capitalist system; a sign of trust, stability, and growth. On the other hand, think about all the exotic financial strategies like mortgage-backed securities, options, and swaps. Even those who manufacture such products don’t always understand the complexity of the monsters they create. To simplify things, we divide financials into three groups: …
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How Sectors and Industries Guide Investors
Sectors and industries help investors understand what they’re buying. That’s a prerequisite for anyone who wants to buy sound investments, observe market turmoil without panicking, act when it’s needed, be successful more often than not with their decisions, and live with a lot less stress. In a nutshell, sectors are categories used to group companies that share similar types of business activities. Sectors are further divided into industries, also called sub-sectors) to group companies that …
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