Dividend Growth Investing

Dividend Growth Investing Blog

About Me

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I am a true capitalist.  In saying that, I mean that I make a profession of investing my capital in good businesses who will pay me for that investment.  When I purchase stocks, I don’t consider this a magical and unexplainable method of making money.  I consider myself a part owner in the company and I expect to be paid cash in return.

This is the first reason I choose dividend growth stocks.

Second, I believe that no company can grow forever and very few can be successful at more than product or service.  Which means, once a company is successful and done growing, it can not spend it’s own money as wisely as I could because I can easily reinvest it in another company.  But most companies refuse to admit this, instead taking their cash pile and forcing growth, R&D, and acquisitions destined to fail.  I would prefer they keep only the cash they need and give the rest to me to reinvest in other smart companies that only keep the cash they need (thus a higher ROE).

That is the second reason I choose dividend growth stocks.

The third reason I choose dividend growth stocks is because they are reliable and consistent.  Several of these companies have not only survived but raised dividends throughout the stagflation 70’s, the 1987 crash, the dot-com bubble burst, and now the great recession.  While the price may go down temporarily, the dividends (income) remain.  In fact, I enjoy the great recession because it means I can buy more shares for my money thus increasing my income.

The final reason that I invest in dividend growth stocks is because I am 33 years old and plan to retire at 35.  I’ve worked very hard increasing my capital, and I’m setting up a life-long consistent paycheck through dividend investing.  Because of my early hard work and now my commitment to making my money work for me, I plan to enjoy I lifetime of financial freedom.

As I said in my intro, I am a capitalist.  This blog is set up to track my investments, analyze dividend growth stocks and my portfolio, and to be completely transparent with you.  While I’m glad to share my strategy and analysis with everyone, none of my writing should be taken as financial advice.

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Written by dividendgrowthguy

July 11, 2011 at 7:42 pm

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