Tuesday, June 30, 2015

THIS IS WHAT'S GREAT ABOUT DIVIDEND INVESTING

Just collected 6 dividend payments on the last day of June.  While I was pleased to see the increase in dividends from last month, what makes me even more excited is that tomorrow, on July 1st, I'll have a repeat of today with all of the first of the month dividends rolling in.  This is the greatest part of dividend investing.  The market is down, yet the money keeps pouring in.  Not only am I collecting more each month, as reinvested dividends increase monthly cash flows, but I'm also seeing my total stock holdings increase with every payment.  While your portfolio is small, the increases seem slow, but as your holdings increase, the money rolls in in ever increasing quantities.

I'm at the point now where I'm in the maintenance mode.  I don't expect to add any new stocks anytime soon, but I'm working on building positions in current holdings.  The only thing that would trigger a trade would be a dividend cut, then it's time to sell.  Otherwise it's just a matter of monitoring my investments.  I do plan to increase my portfolio to a total of 30 holdings after doing more research in dividend investing.  According to my research, a portfolio of 30 investments stands a greater chance of positive returns with less volatility than a smaller portfolio.  I don't feel particularly rushed to buy stakes in an additional 10 stocks.  I think at this point I should be very selective and search out quality stocks at good prices to add to my holdings.  I'll be looking for the best deals with the most profit potential.  When I do decide to buy new stocks, they will most likely all be from the list of Dividend Aristocrats.

No comments: