Corrections are for young dividend growth investors
In a small fund that I manage for my friends and family, I keep on updating with the status of portfolio, market condition, new trades and try to give simplified information. On Oct 25th, 2021 I remember writing why being young and dividend growth investor is the single best thing about the market downturn. I think it is so applicable right now too.

It's a blessing to be dividend investor and young because market can move 3 ways:
  1. Stay flat: We get to buy stocks in same price as we did + we get to re-invest dividends
  2. Goes down: We get to buy those dividend companies in cheaper and by the time we retire we increase cashflow + expect bull run
  3. Goes up: It's going up = capital gain (duhh)
I know it's over simplified, but the basic concept remains the same. Invest in quality company that gives dividends, re-invest dividends and wait... no complex mathematics or science required.

Are you a dividend investor? Do you agree?
Are you not a dividend investor? What's your strategy?
Eric Messenger's avatar
I e acquired new strategies with each great book I read. So I have portions of my portfolio representing contrarian/swing trades, long term buy/holds, dividend/current income, dividend growth, growth at value, Dogs of the Dow, etc.

People say Buffet and Lynch over simplified investing; but of the 75+ books I’ve read, I use the 4 I read about/by them two men more than all the rest combined. After starting simple, I got complex, and found reasons to avoid every investment basically. Then got back to simple basics and have been rockin it the last 5 years. Easier I roll the better. Found the metrics that matter, now the noise is irrelevant. Buy great companies at fair/value prices. If they pay a dividend, that’s even better.

You can check my portfolio though. Have some aristocrats like T. Rowe Price. Still want to add kings like Nucor & Lowe’s at current valuations. And just added some great dividend growers last week; Texas Instruments and Broadcom, which has the fastest growing 5 year DGR (CAGR) among all dividend achievers. It’s higher valuations than I usually pay but I’m spreading my wings. Wanted growth as well as current dividends.
Reasonable Yield's avatar
Agreed, some stability that allows me to sleep, knowing I have invested in slightly more mature companies, ones that have reasonably predictable cash flows.