The goal of every dividend investor is to generate dividend income that is larger than their annual expenses. This coveted goal is called the dividend crossover point. Regular readers know that my goal is to reach the dividend crossover point somewhere around 2018. I am on track to achieve that, because I put money to work every month, and have been doing that after starting from scratch more than 8 years ago. When you have a goal, and a plan to achieve that goal, the important thing is to keep working towards that goal. I do this by constantly searching forattractively valued companies, which also have good prospects to grow dividend income in the future. [more]
I believe that dividend investors have an inherent edge against everyone else on Wall Street. This comes down to several traits, which set them apart from the crowd. [more]
I have been overdosing on everything about Warren Buffett in the past two-three years. This has spilled over to learning more about Warren's business partner Charlie Munger.Charlie Munger is big on the so called mental models, which are principles on how to live your life. [more]
My favorite saying is that "The best time to plant a tree is 20 years ago. The second best time is today." This is why I am carefully planting each dollar seed into carefully chosen portfolio of quality dividend growth stocks available at attractive valuations. I then enjoy the increase in dividends per share from those companies, and further magnify the compounding process by reinvesting the dollars into more dividend paying companies. Thus, I am creating a positive loop, that keeps on delivering results for me.
The power of compounding is said to be one of the 8th wonders of the world. A dollar that compounds at 10%/year today turns into $1.61 in 5 years, $2.59 in 10 years and $17.45 in 30 years and $117.39 in 50 years. [more]
The process of identifying a great company, and purchasing it at an attractive price is part art, part science. While I have tried to narrow it down to a few quantitative factors, mydetailed analysis of each company could bring an unexpected turn of events in determining qualitative nature of things. [more]