Discovering Dividend-Growth Investing

I’m going to start off by stating that I’m embarrassed.  I’ve been actively involved in stock investing since 2006, yet it was only in August 2019 when I finally came to understand the power of investing in stocks that not only pay a decent dividend, but which also regularly increase or ‘grow’ their dividend.  These are commonly referred to as “dividend growth stocks.”

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Why Does Everybody Love a Sale Except When it’s the Stock Market?

The peculiarity of most people is perhaps no more apparent than how they deal with money.  I find that one of the funniest phenomenons is that of the idea that you’re “saving money” by buying something on sale.  A person might drop $1,000 on a new T.V. that’s on sale, for example, but be more excited by the fact that the regular price was $1,300 and therefore claim that they “saved” $300.  No, they actually didn’t save a single dollar – they just spent one thousand of them!  However, so few people seem to see things this way when it comes to retail spending.

Retailers have most people brain-washed into thinking that spending is actually saving and therefore people from all walks of life don’t get much more excited than when things are on a huge sale.  The most mild-mannered of people can get as excited as a school-kid on a sugar high when an online or in-store search results in finding something (often that they don’t actually need) that’s selling for a major discount.

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Should You Hitch Your Wagon to a Racehorse?

Whether you’re a seasoned stock investor or a newbie, chances are that you’ve come across that one stock that seems to be on fire.  It will surge a percent or more for a few or even several days, cool off for one or two, then continue its strong trajectory for weeks and even months.

The question arises:  should you jump into owning a stock that’s growing fast?

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Building an Investing Cushion

People who are invested in the stock market are enjoying one of the longest periods of sustained growth in its history.  Following the recession of the late 2008-09, the U.S. markets in particular have moved steadily upward, having only short periods of minor setback and few at that.  It’s really quite an amazing run when compared to the overall history of the market.

Even if an investor has started buying stocks of quality companies only within the last five years and held onto them, they will typically have already experienced some of them at least tripling in value even if they only own a dozen companies.  This is the most obvious benefit of long-term, buy-and-hold investing, but another big benefit is not as obvious:  the longer you hold onto a successful stock, the larger the ‘cushion’ that develops between the stock’s current price and the price you bought it at.

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The Poor Won’t Get Richer Until They Get Smarter

Although I don’t always trust the credibility of facts and statistics that I see on social media, I saw a recent Facebook post that had a lot of truth to it.  In a nutshell, it illustrated how big-ticket items like a car and home were a few times less expensive a few decades ago when compared to an average person’s annual wage than they are now.  The point:  the spread between what the average person makes and the things that he/she needs or wants to buy is growing larger.  This made me think about how consumer debt has grown to astronomical levels in recent years.  The correlation between less buying power and growing debt became very obvious to me at that moment.

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So You’re Following this Blog, Eh?

A few months ago, a very curious thing started happening with this blog.  I started getting regular and numerous e-mail notifications about new followers, all with an e-mail address and mostly non-sensical user names.  However, none of them show up in my list of followers and so I’ll call them “mystery followers.”  This is a bug of sorts that other WordPress bloggers have noted in forums, but which nobody seems to have an answer for.  Allow me to entertain some thoughts.

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