Dividend Growth Investing Works for Everyone

Key is putting in the time and sticking to a plan

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I have been writing about dividend investing since early 2008. I started this site in order to write down ideas on dividend investing, keep myself motivated, and make myself to do some work before putting money in dividend paying businesses.

There were not a lot of dividend investing sites back then besides mine, and only Dividends4life and The Dividend Guy are still active. The rest just dropped out, because writing about investing is time consuming. Recently, we have a lot of websites that keep on discussing personal stories of the authors, including details like their monthly income, expenses etc. Some dividend authors like Dividend Mantra have gone as far as coming out into the national spotlight.

You would never see this on the Dividend Growth Investor website however. What you would see is information related to my dividend investing strategy, dividend stock analyses, portfolio management and dividend increases. This example type of information, is really all the information you really need to succeed in the game, if you put in the effort. Actually, your effort might be the most important ingredient you need to succeed with dividend investing, now that I think about it.

The reason why I am anonymous and share little detail about myself, is because this is not and should not be important to you. I have observed how when I mention something specific about my investing, I always notice that someone is focusing on the things that should matter the least to them. This is because it is all very relative – to a cashier working at WalMart (WMT), saving $5000/year might look like an impossible task, whereas a highly-compensated lawyer might just ignore anything that mentions less than $50,000.

For example, an article I posted about the power of dividend reinvestment garnered some of useless comments stating that someone in their 20s cannot save $3000/month. Another article I wrote about investing in a Roth IRA generated comments that investing $200 at a time is not worth the effort. The reality is that it does not matter how much you put into your strategy, because all it matters is that you have a strategy, and you execute it consistently with the amount of capital you have at your disposal.

It should not matter if you put $200/month or $3000/month in dividend paying stocks, or whether you are 25 or 65 years old. What matters is that you put some money to work when you find attractive dividend payers at reasonable prices.

I believe that dividend investing is a perfectly democratic way to earn passive income. In order to be successful, it does not matter what your age, gender, or nationality truly is. You do not have to play office politics, or focus on things that do not interest you. You do need to put in some work into it however, in order to learn how to screen for stocks, analyze companies, and build diversified portfolios over time. You also need to have an open mind, and not be subject to prejudices. This is where most investors usually struggle, because if you make up your mind in advance, then it is very hard to make the right decision, even when the data tells you what the correct answer is.

What I am trying to say is that dividend growth investing is a strategy which is bigger than a single individual. You can be successful using it, whether you put $200 or $20,000/month, and whether you are in your 20s or 60s. The core concept applies for all scenarios. Dividend growth investing is all about finding a quality company at a cheap price, which can increase earnings in order to pay growing dividends. You also want to focus on a company whose dividends are sustainable, which lowers the risk of a dividend cut. Growing dividends are important, because they allow you to maintain purchasing power of your dividend income, without having to add more capital or having to reinvest a portion of distributions back.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/dividend-growth-investing-dividend-stocks-wmt-xom/.

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