Why I like dividend growth investing and you might too...
I have been a dividend investor for more than 20 months now and I was able to build a portfolio of over $350,000. Now the portfolio is hovering around $300,000. YTD my portfolio is down around 13% and wrecks my heart as my portfolio is going down everyday. There are times people in finance attack dividend growth investing at times for its focus on companies that payout dividends, and as it is passive form of investing - today I will try to defend DGI by showing how it's relatively good in all market conditions with a brief history and strategy of my portfolio. I look towards the positive side and why I choose Dividend Growth Investing in the first place.

๐Ÿ’ธ Dividend growth investing in every market conditions
The market can go in 3 directions and here are the scenarios and why dividend growth investing makes the best out of every conditions assuming companies that you invested doesn't cut the dividends:
  • ๐Ÿ‘‰๐Ÿฝ Sideways: If the price stays relatively flat, we can buy more of the shares at $100, and once the sideways movement ends the compounding will be greater as we accumulated more stocks at a small price.
  • ๐Ÿ‘‡๐Ÿฝ Downwards: Let's say if the market goes down, we still are getting the dividends from stocks that we hold. So, we can accumulate more of the dividend stock at a lesser price. We are increasing the cash flow and buying more assets.We just have to play the waiting game for the market to go to the bull run for capital gains.
  • ๐Ÿ‘†๐Ÿฝ Upwards: Although, our reinvested money won't be able to buy as much of the asset, we have both capital gain and dividends to re-invest.
๐Ÿ“ Brief history of my portfolio
I have been building my portfolio for few 20 months now and I have recently crossed $16k in dividends ๐Ÿฅณ๐ŸŽ‰. Capital gains can vanish like how it did with my $U but companies won't ask the dividends back

My portfolio link: here.

๐Ÿ™ˆ My strategy
I have concentrated down my portfolio into 3 parts in the hopes to achieve all the possible benefits of dividends and growth of dividend growth investing.
  • ๐Ÿ’ฐ Income: I want my portfolio to earn as much as I can, so I can re-invest as much as I can. This is possible due to covered call ETFs with high dividend yields like $JEPI, $QYLD and $BST. These 3 income ETFs yield at an average of 10.15% and has an expense ratio of 0.6% (on the higher side). They generate over 60% of my dividend income while they are 35% of my portfolio. I don't expect significant capital gain from it.
  • ๐Ÿ’ธ Cashflow: While income and cashflow are similar, cashflow category consists of monthly dividend stocks that yields at lower rates and has capital appreciation. This includes stocks like $O, $STAG, $AGNC, $NRZ. They cover around 15% of the portfolio while generating around 20% of the dividends income.
  • ๐Ÿ’— Growth: For growth in both capital gains and dividend CAGR I have stocks like $AAPL, $MSFT, $VICI, $VOO (i am planning to increase my position), $HD, $COST, $WM and $JPM. Together they make 45% of the portfolio and generating 20% of the dividends. They have a 3 year - weighted CAGR of 8.28% and average 3 year CAGR of 9.68%.

This gives my portfolio a decent place to stand. It will generate around $1,584.67 (while my cost per month are barely over $300) per month at 5%+ dividend yield (good cashflow). It also has a beta of 1.000217417 where I will be making gains similar to market (which I am happy about) and the movement lets me sleep well in the night as well (not too crazy in comparison to other individual stocks), so I can expect to make around 8ish% per year in capital gains. And, best of all the dividend CAGR is at 12%. So, I will be increasing my dividend cashflow too. This might be too conservative for some and but this gives me everything I need - cashflow and peace of mind.

Investing is like having sex - very personal. Everyone follows different strategy, and has different goals. But, every now and then it's exciting to mix things up. So, you might want to give DGI a try, you might like it...

And my final attempt to convince you to try DGI...

If this magic trick doesn't convince you, idk what will haha
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Keep accumulating and building that passive income! Doing that now when things are down is much better for you long term if you stick to it! Congrats on the substantial portfolio.
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A couple of buy the dip opportunities with REITs. Which one would you go after?
Which stock are you investing in?
16%$IVR
50%$AGNC
33%Other (list in comments)
6 VotesPoll ended on: 05/29/22
I don't see a list in the comments but I am going to vote for $AGNC since it is in a daily chart up trend and $IVR is not.
Add a commentโ€ฆ
I am buying $U because you said so
So, I ran a poll saying what should I spend my dividend income from $AGNC on. 46.7% of you told me to buy $U, and the timing couldn't have been perfect as $U is below $89 (where where I like it), so I placed an order.

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I will do what you say ๐Ÿ™Š
This is my version of YOLOing, spending my hard earnt dividend money based on a CS poll ๐Ÿ˜…

I have gotten $135.08 from $AGNC in dividends today. I will run a poll and whatever is the poll result, I will do that.

#YOLO #dividends
What should I do with that $135.08? ๐Ÿค”
46%Buy $U ๐ŸŽฎ
20%Buy $AGNC ๐Ÿ’ฆ
20%HODL Cash ๐Ÿ’ธ
13%Invest in the pie ๐Ÿฅง
15 VotesPoll ended on: 04/14/22
Upcoming Earnings Calendar (Jan 31st- Feb 4th)
Hey guys!

Here's the earnings calendar for next week! Here's what I'm interested in:

  • $XOM - Insights on the global oil market.
  • $GOOG - Strength of the digital ad market + growth of YouTube (since $NFLX slowed down).
  • $FB - Comments on their strategy to monetize Whatsapp (I don't expect any, but one can hope).
  • $SPOT - They recently expanded to other markets, so maybe they can maintain accelerated growth, unlike Netflix.
  • $AMZN - AWS and Advertising segment growth + impact of the increase in 3P fees.

What are you looking forward to next week?

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

MON:


TUE:


WED:


THU:


FRI:
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Big Week Ahead! (Oct 25-29 Earnings Calendar)
Next week will probably be the most interesting week for the stock market this quarter. The largest companies in the world are all reporting and we'll get a lot of very valuable insights.

Here's what I'm interested in:
  • More context on the slowdown in ad spending from $FB $GOOG and $TWTR. Let's see if these companies are experiencing similar issues to the ones $SNAP mentioned yesterday.
  • Comments on the global supply chain issues from $KMB $MMM $GLW $LOGI and others.
  • A general update from $AMD $TDOC $SHOP and$AMZN.
  • Perspectives on the energy market from $XOM $CVX

Comment below what earnings call you're looking forward to!

Remember you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

MON

TUE

WED

THU

FRI
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Let's talk about the losers!!! ๐Ÿ˜ญ
We often talk about only winners, and to the audience, it probably seems like every stock is gonna go up. And, when we disclose about our losing stock - we end up giving reasons behind the fall and make it up saying oh I'll add because of conviction. But, we proudly show the winning stocks and rarely show the losing stock. I have been guilty of it.

What I can bet is no investor in the world has ever been green on all of their stocks. I am pretty sure they have closed at least one security on red.

I love being transparent, showing ups and downs, showing not all plays will be profitable and the goal is to offset losers with bigger winners.

List of my losing stocks:

I am significantly down on $LTC, $BTI, and $UL with 13%, 7%, and 7% down respectively. I am also down in the range of 4%-2% on stocks like $AGNC, $MMM, $ABBV, and $BEN. My recent purchases in the income fund ($NUSI, $QYLD, and $JEPI) have incurred an unrealized loss of over 1%. My total loss is $6,450.

I however am lucky to have gained significantly in other stocks like $U (+54%), $COST (+23.73%), $MSFT (+23.27%), $JPM, $STAG, $WM, $AAPL, $NRZ (+20% to +15%).

The game plan:
The game plan is to not incur a loss in the portfolio even if there are few red stocks. So, that's what I am doing right now. That's what I am doing as the well total gain is around $35,796.04, the net profit being $ 29,345.67. The gain from the top three gainers ($+7,392.80) offsets all of the losses of $6,450.
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Weekly portfolio update (July 12- July 16).
Portfolio gain : -0.79% (-$1,802.37)
Biggest gainer : $STAG +2.61% (+$190.30)
Biggest loser : $U -9.22% (-$779.39)
Dividends : +$232.82 ($STOR - $67.63, $STAG - $19.34, $O - $64.26, $AGNC - 81.59)
Debt payment : +428.40 (-$5,254.17 new principal)
Beat $SPY by 0.18%
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Follow my journey @investor_from_nepal
Share my journey @investor_from_nepal
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#FIRE #financialfreedom #dividend #dividendinvesting #moneyig #finlitracy #financial
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