This will be the first, of many, posts that I will have which will focus on my journey to make sure my family is financially independent in the — hopefully not too distant — future.
Many people choose different investment strategies when it comes to stocks. Some choose to buy low and sell high, hoping they can predict and time Mr. Market just right. Studies show that in the long run, the majority of people who use this strategy actually underperform the market. Others — like me four years ago — decide to go with an easier — and in my opinion less dangerous — route, Dividend Growth Investing.
What I do with my money is simply pick steady, or what I feel are steady at least, companies that have a history of growing their dividend each and every year.
My portfolio as of this update is worth just over $26,000 (this includes my work retirement account mutual funds).
In my portfolio are rock solid Dividend raising machines like Coca-Cola, Consolidated Edison, Kimberly Clark, Johnson & Johnson and McDonald’s.
With these companies I simply invest my money, then sit back and reap my rewards in the form of quarterly dividend payouts. It’s pretty sweet.
Today, I added to my positions with three companies I’m already invested in: OHI (Omega Healthcare Investors), GOV (Government Properties Income Trust) and F (Ford Motor Company).
I added 3 shares of OHI, bringing my total to 10 shares in my portfolio.
I added 2 shares of GOV, bringing my total to 13 shares in my portfolio.
And I added 1 share of F, bringing my total to 16 shares in my portfolio.
Overall these additions added $11.96 to my yearly dividend income, which now sits at $616.20!
That is some dividend power right there. And as long as I decide not to sell any of my stock, I will collect that much money each year just for sitting on my butt.
Of course, the ultimate goal is to earn more in dividends than what my actual job pays per year. I’m a long way off of that goal, but every small step gets us closer to rolling a snowball to retire at an early age.
Disclosure: I am long on KO, ED, KMB, JNJ, MCD, OHI, GOV and F.
This should not be considered financial advise as I am not licensed to provide that for anyone. I am just a guy who wants to share his own attempt at becoming financially independent. This should be used as entertainment only.