So you have decided to invest in dividend paying stocks. Welcome to the club! 🙂 This form of investing can be very profitable on a long term. As I described in my post on “How to be a millionaire?“, the main principle is to continuously invest your savings and let time and compounding work for you. The idea is simple, nevertheless there are quite a few traps on the way. In this article I will explain the reason behind the biggest dividend investing mistake you can make.
It is nearly 2017 and around this time of the year you can find a bunch of articles that all try to find out what will be the winning investment strategy for the new year. I also came across a lot of these that specifically deal with dividend paying companies. I always read these with great interest as all individual stocks in my Dirty Thirty Portfolio fall in this category. From this occasion I invite you for a game that will last throughout the year: The Battle of Dividend Stocks 2017!
When it comes to investing in individual stocks, one of my favorite type of companies are the ones whose products I use myself regularly. Every time I make a purchase from such companies I feel a little bit like putting the money from one pocket to another (ok, the latter one might have a hole 🙂 ). One of my regular expenses is fuel. You can really say that you have reached financial independence once your expenses are covered by your passive income. So let’s find a way to cover fuel costs. I want to fill my car for free!
Wow, it’s already December! This year seems to be passing by in no time. Winter is officially here, although I can’t remember when the last time I saw some proper snow was. Still I invite you for a winter theme game (if you don’t wanna join, you can still watch from your warm room). I’m going to roll a snowball. A dividend snowball! I start with something small, but on its way down the mountain it’s gonna be bigger and bigger like no one wants to stand on its way! Check out how I’m planning to do it!
It’s been a week since we know that the next president of the US will be Donald Trump. Once thing I can promise: this is never gonna be a blog about politics. Also this post will be totally politically neutral. First of all it’s easy for me to be neutral as I live in Europe. Secondly everyone must respect the decision of the American people; at the end of the day the guy got almost as many votes from them as Hillary 🙂 But let’s stick to the topic of finance and let’s see what kind of conclusions we can make from this week!
Another month, another step closer to financial independence. In October our investment rate was according to the plan, adding nearly EUR 2,000 to our portfolio via share purchases. We’re in the middle of the Q3 reporting season and the results so far quite mixed with both positive and negative surprises. Overall the S&P 500 closed slightly lower this month, but due to the stronger dollar our portfolio had some small gains in euro. Let’s see the details!
One great way to invest in many different stocks at the same time is via an ETF. If you buy a Vanguard S&P500 ETF (VOO), your returns will be almost the same as you bought the shares of all the S&P500 companies according to their index weight. All this with one purchase, one time transaction costs and as low as a yearly 0.05% fee. As a bonus, it currently has a 2% dividend yield. Nevertheless if you are looking for ETFs that solely hold dividend paying shares, here are 4 great ones to consider including in your early retirement portfolio:
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in”. This is a quote from John D. Rockefeller which from one hand I find extremely sad (he must have had a pathetic life if he really meant it), on the other hand it’s true that seeing the companies paying you dividends (no matter how big or small) just for the honor that you own their shares is an extremely satisfying feeling. And this is just one of the many reasons why the members of my dirty thirty portfolio are all dividend paying companies. To see the other reasons, please read further.