Friday, February 17, 2012


Not long ago I wrote about adding utilities to my portfolio.  I've owned shares of CNP and Great Plains Energy for quite some time now.  However, with a goal towards increasing monthly cash flows and evening out monthly dividend payments, I decided to beef up my portfolio with high quality utility stocks. I've added Duke Energy (DUK), Wisconsin Energy (WEC) and Northeast Utilities.  With the dividend payment from Northeast (NU) in the month of March, I will have received payments from all three investments.  With these investments paying off each quarter, my next move will be to add shares in 3 additional utility companies paying in different quarters.  This will boost monthly dividends paid to my portfolio for each month of the year.  In the end I'll be collecting the same number of dividend payments each month.  Then it's really just a matter of boosting my holdings through dividend re investments and additional cash contributions to reach the ultimate goal of replacing my monthly from work.

As long as my health holds out, I plan to work at least another 10 years, so I've got quite a bit of time to build on my investments.  I'm already seeing the benefits of monthly income from dividends by the additional freedoms this allows.  I no longer have to work as much as I used to, or make as much from my job, to maintain my lifestyle.  Probably the best benefit of all is not worrying so much about money,  since I know that even when big expenses arise unexpectedly, the cash machine I've created from dividend stocks will eventually put me back in the black.

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