The Dividend Guy Blog

Unconventional Lifestyle and Dividend Growth Strategy

Principles

Is the Yield on Cost Relevant?

Dividend Growth, Investing Strategy, Principles

I will not sell XYZ as my yield on cost is now 8% I’m sure you have heard (or even said) this line a few times, haven’t you? Funny enough, I’ve also used this line to justify some of my holdings. For example, I’ve considered the yield on cost for my low dividend paying stocks. The idea is to show how a 1-2% dividend yield stocks could become a 3%+ yielder in a few years. Examples of companies like Disney (DIS) which pay around 1%-1.5% yield, but provide shareholders with a strong pay raise each …

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Can Dividend Stocks Crash?

Dividend Growth, Investing Strategy, Principles

Are Dividend Stocks too good to be true?   I’m a fierce defender of dividend growth investing. For the record, my portfolio is 100% invested in dividend paying stocks. Still, I think it’s time to wonder if a dividend bubble is about to bust… Dividend Growers to the top The popularity of dividend stocks has grown significantly over the past decade and there are several reasons for it. One of them is a magic word among investors; performance. Since the 2008 meltdown, dividend growers …

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Valuation Model When The Market is Too High

Dividend Growth, Investing Strategy, Principles

Investing new money in the stock market hasn’t been an easy task for the past 2 years. We ran into our first market dip in 2016, boiled by investors’ worries. Then, clouds disappeared and opened the space for more sun to shine over the stock market. This is how both markets finished 2016 with great strength: Source: ycharts – dividend excluded While this is good news in the short term, investing in 2017 has been terribly difficult for most of us. Why? Because everything is …

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The Dividend Triangle – The Equation to Successful Dividend Growth Investing

Dividend Growth, Investing Strategy, Principles

Several investors spend years working on their investing model. They are somewhat convinced they will find the magic formula nobody did before. I sometimes have the feeling that investors are just looking everywhere but right in front of them. I’ve always managed my portfolio having the word “efficiency” in mind. When you think about it, dividend growth investing foundation is linked to only 3 pillars I call the “Dividend Triangle”. First, the company must make revenue. Without revenues, …

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The Price You Pay Doesn’t Matter

Investing Strategy, Principles

Not too long ago, I wrote an article on Seeking Alpha about selling General Electric (GE) before it fails investors again. I knew there are lots of GE shareholders and I expected to get thrown my fair share of tomatoes. After all, we have all our reasons to hold share of one company instead of another and someone telling you it’s a bad idea may hit the wrong button. There was something very surprising in the comments thought. Especially coming from supposedly educated investors. Several …

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Never Fail with this Ultimate Trigger to Sell a Stock

Blog, Investing Strategy, Principles

This is a dark time for investors. We are on the verge of the most important stock market collapse. Things are not going right, but “THEY” want you to believe it is. After all, we have been riding a bull market since 2009…. It’s pure math that the market will drop like a rock in early 2017… Source: Ycharts This is how several investors start selling a part of their portfolio to remain in cash before the inevitable will happen. This is also the reason why so many investors keep their …

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