All extra dollars to the Dividend Business

Lately, all my extra cash has been going towards the dividend business.

Over the past few weeks, much of my free time has been put towards the rebuild of the best side hustle I’ve ever encountered in my lifetime — dividend income investing.

To put it bluntly, I haven’t been this focused on dividend income investing since before I eluded the 9 to 5.

In the past month, I’ve managed to set up my stock sharing plan through my employer, open up a new brokerage account designated for long term investing, and was fortunate enough to get featured on a Q&A to celebrate happiness.

You can check out my Q&A on the Pursuit of Happiness here if you haven’t yet.

How does dividend income investing relate to happiness?

It relates because one of the great ambitions of my lifetime is to build a dividend portfolio that spins off enough income annually to support me.

Dividend investing is how I plan to eventually support myself. That way, I’ll get to put my full time efforts in to blogging and capital allocation.

Be that as it may, it’s not about the money, it’s about having a more fulfilling life.

I can’t even lie, though, I do enjoy allocating capital in to different income producing assets.

One of the primary reasons I enjoy investing so much is that I get to run cash flow as if it’s a business.

Furthermore, when it comes to dividend income investing, you are creating a snowball because of the way the cash flow comes in.

The more shares you purchase, the more dividends you get paid.

Eventually this leads to even more money available to purchase more income producing assets.

Dividend income investing is a business that is slow in the beginning, but with steady contributions over a 5 year period, you can really start to see significant cash flow coming in.

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DI Notes — All extra $ to the Dividend Business Click To Tweet

My Strategy with Dividend Income Investing

If you’re looking for details on investing from more of a fundamental perspective, please read How to buy Long Term Stocks, which I wrote on this blog last year.

For the sake of this blog post, I want to look at dividend investing as simply a way of spending your money on things that make you more money.

Since I am behind where I once was as a dividend income investor, I will be looking to take on more risk in the early going to get back the level of dividend income of 2016.

To speed up the process, I am looking for minimum yields of 3.5%. However, I’d prefer 4% and up.

As always, though, I only by quality businesses that I support and understand.

Basically, I have preselected a group of 10 or so dividend income stocks. The plan is to continue to purchase this group of stocks by way of whichever is the better priced asset at the time of purchase.

Dividend investing is about spending your money on things that make you more money Click To Tweet

Dividend Income Updates on the blog.

In case you haven’t noticed, dividend income updates have been scare on the blog since last November.

To be honest, due to my extended absence away from the 9 to 5, and in preparation for the chance that I would not be able to find a job, I sold off most of my positions.

If I was to be blogging dividend income reports over the last few months, all that would show is negative YOY results.

I’ve been tryna scheme on new ways to bring the dividend component back to this blog, since it’s a big part of what I like to do.

Further, it fits in with my goal to dividend invest my way to a more fulfilling life.

Through dividend investing, I can progressively grow to a financially independent position.

That said, I do intend to bring back dividend income updates to this blog.

The updates fit along well with the monthly blog statistic reports as well as the goals blog posts.

As fas as a time frame for the next report, I intend to bring the dividend income updates back on this blog over the course of the next few months.

I am still undecided on whether to compare the 2017 results to the 2016 results, or start from scratch altogether. Also, I have never published actual numbers, I have only published percents. I have been undecided on whether to alter that as well.

Nevertheless, watch out for the next dividend income update to make an appearance again soon.

Question: What are your thoughts on dividend growth investing? What is your investment strategy?

14 Comment

  1. I’m a huge fan of dividends. When I was younger I was trying to hit it big with growth stocks. Now that I’m older I love solid dividend paying companies that consistently raise their guidance. There’s no better feeling to getting paid just for holding some shares of stock 🙂

    1. Graham says: Reply

      Thanks for reading and commenting MSM!
      I agree that there’s nothing better than getting paid just for holding shares. Also, it’s even better when those payments keep rising because of dividend raises. I love how much more predictable dividend investing is as opposed to growth investing. Have a great week!

  2. Like I’ve mentioned before, I’m also a dividend guy. I’m always trying to build up that passive income stream. Cash flow baby. I look forward to your posts, I enjoy hearing other people’s strategies!

    1. Graham says: Reply

      Thanks for reading and commenting, Mr. Defined Sight!
      It’s always great to find others who see the value and have the patience for dividend investing. Other than bloggers, I don’t really know many people in real life who have the patience for dividend investing. It’s too slow at first and boring for most people. But like you said, it’s about the cash flow. I am grateful for every extra dollar of cashflow I can attain. Thanks for stopping by 🙂

  3. I am a fan of dividend investing, but at the moment the prices of most dividend stock are even more overpriced than that of the broad market……on a relative basis. I would suggest that this would be a dangerous time for anyone to jump into the stock market with both feet…..especially if you are chasing typical consumer staples like Coca-Cola or Clorox.

    Just my opinion, but personally I am not finding much value in the US market. Happy (Value) Hunting!

    1. Graham says: Reply

      Hey Bryan,
      Thanks for commenting and providing your insight on the market! I always appreciate your thoughts on current market conditions.

      I fully agree with you on most dividend stocks being overpriced right now. I’m having a hard time deciding on what to buy at the moment because yields are lower as well. That said, at the core, I’m a value/dividend investor. My strategy during these type of marketing conditions is simple – if I don’t see anything worth buying, I build up more cash. When I can find value, I usually make bigger initial purchases. Usually, though, I dollar cost average my way into positions in smaller increments. I haven’t seen an equity worth taking a large initial position during my research yet. I’ve got a week off work coming up, so I hoping to be able to spend more time on research.

      Thanks again for your opinion! Hope you’re having a great week!

  4. This post reminds me of Dividend Mantra’s enthusiasm for dividend investing. Awesome!
    I’ve thought about putting some money into dividend investing, but I never seem to have any extra money to throw at it. It’s all going towards fully funding my 401k and IRA. Maybe if I get a nice raise sometime…. 🙂

    1. Graham says: Reply

      Hi Linda,
      Thanks for reading and commenting! And wow. That’s a major compliment to compare the enthusiasm to Dividend Mantra. Thank you for that! I’m glad my enthusiasm shines through. Dividend Mantra was one of the blogs that inspired me to start blogging again. It often helped get me through my work day because I would read it on my way to work.

      In regards to putting money towards dividend investing, it’s definitely a challenge to put extra money aside. In my experience, the best way is to start small. Even if you start contributing $25 to $50 a month into a brokerage account, I think it’s a low risk and motivating way to begin. Each time the dollar value in the account hits $500 to $1000, you can dollar cost average your way into positions and add to your dividend income. Once the ball gets rolling, it gets a lot easier to continue. Thanks again for stopping by! 🙂 I hope you get that raise too!

  5. I’m on board with DGI, been so since March 2016, have done really well. It all made sensemble to me once it was explained. My only regret is that I didn’t start earlier.

    It’s true that most quality stocks are fully valued, but there are pockets of value. I have been adding to a few positions that I feel are somewhat undervalued but are still good businesses.

    1. Graham says: Reply

      Hey Seeking The Dividends,
      Thanks for reading and commenting! I am glad to hear that you have done well with your dividend portfolio over the last year. I regret that I didn’t start earlier too. I wish I had the awareness to know that dividend investing even existed back in my early twenties. Nevertheless, at least I know now and still have the chance to invest. I am also glad to hear that you are finding value. I have been keeping my eye on few stocks and am waiting for a bad day for the markets to pick something up. Thanks again!

  6. Totally! Yes! Love that you’re seriously back onto it – definitely the way to go in my opinion of course.

    Indeed, there isn’t much value out there at the moment, but I think it’s good for long-term investors that’s for sure.

    We are focusing more on fast-growth dividend stocks that should be able to make up for any interest rate or valuation changes in the long run.

    1. Graham says: Reply

      I’m happy to read your reaction, Mr. DDU. I was a dividend investor for years prior to the year off. I agree that it is the way to go when it comes to investing.

      Thanks for the tip! It can be tempting to chase higher yields to get the ball rolling, but higher dividend growth rates is definitely a good way to combat valuation changes. Frankly, though, as a dividend investor, you sort of hope the market prices drop because dividend income is on sale. Thanks again!

  7. DivHut says: Reply

    Any new updates coming up?

    1. Graham says: Reply

      I’m planning to publish a dividend update in June. It won’t be a huge amount or anything though. I’m still way behind where I previously was. I’ve also been working on a post about my investment strategy that will be published shortly. Have a great week.

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