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Saturday, July 26, 2014

Best Dividend Investing Articles for July 2014

For your weekend reading enjoyment, I have highlighted a few interesting articles from the archives, which I find to be relevant today. The first five articles have been written and posted on this site, while the last five have been selected from other authors. I tend to post anywhere between three to four articles to my site every week. I usually try to write at least one or two articles that contain timeless information concerning dividend investing. This could include information about my strategy, or other pieces of information, which could be useful to dividend investors.
Below, I have highlighted a few articles posted on this site, which many readers have found interesting:

1) Seven Dividend Stocks I purchased for the long-term

I was able to identify seven dividend companies, and purchase them in my tax-deferred accounts. In the article, I discuss the names involved, brief information behind each company and why I purchased it. Since I am a stock picker, I believe that investors can find bargains during most times.
On a side note, I also sold some 2015 and 2016 puts on General Electric (GE), Wells Fargo (WFC) and Altria (MO) a few days ago. I am also close to selling some puts on General Mills (GIS) in the coming days.

2) Are you drowning in cash?

I discuss the issue that many investors and corporations have today. The issue is that they are drowning in cash. For the everyday dividend investor like me, I believe the best idea is to keep searching for values, and dollar cost average in those values every month. With a long-term horizon, I believe the power of compounding will provide good returns over time.

3) How to earn $900 in dividend income per minute

Warren Buffett's holding company Berkshire Hathaway is one of the largest shareholders in Coca-Cola (KO). Those 400 million shares effectively produce over $900 in dividend income every minute. Buffett likes receiving dividend income from his holdings, but prefers to allocate those funds himself into other income producing assrts.

4) Can everyone achieve financial independence with Dividend Paying Stocks?

In this article I go through the steps I take each month, in order to achieve my goal of financial independence one day. I believe that everyone can achieve the so called dividend crossover point, which is the point where dividend income exceeds expenses, if they apply themselves and keep learning about investments all the time. I do believe that success will be achieved by those who put in the time and do the work today, and let the snowball roll.

5) Five Dividend Machines With Growing Distributions

One of my ways to monitor dividend growth stocks is through regular monitoring of dividend increases. In this article that readers found interesting, I highlighted five dividend growth stocks, which recently announced increases in distributions.

I read a lot about companies, and also read a lot of interesting articles from all over the web. A few that I really enjoyed over the past months include:

1) A 0% Allocation to Fixed Income?

Dividend Mantra had a very interesting article on why he has no exposure to fixed income. Given the low returns on fixed income, the unfavorable taxation on interest, and the fact that interest barely keeps up with inflation, I share his views completely. I found particularly interesting the discussion how Social Security checks represent an asset that is similar to fixed income, which also provides inflation protection.

2) Why Dividends Matter?

Dividends4Life provides 11 compelling reasons as to why dividends do and should matter to investors. He also provides 11 dividend growth ideas for further research by investors. He is one of the most consistent dividend bloggers out there, and I have had the pleasure to interact with him over the past seven years.

3) 20 Dividend Champions To Buy Today

Chuck Carnevale provides a list of 20 dividend champions which are in value territory today. While everyone else has been worried sick about a correction, individual dividend investors like Chuck have been able to allocate their capital wisely in the best values that they see at the moment. This is what makes dividend growth investing appealing to investors like me who put money to work every month - even when the stock market is at elevated levels, there are always quality companies available at bargain prices.

4) Why Have Dividend Aristocrats Outperformed?

Sure Dividend provides some very interesting reasons on why Dividend Aristocrats have outperformed over the past decade. It is not surprising that when you have highly profitable businesses, which are the leaders in their industries, manage to keep growing earnings over time, have high returns on equity, and have the discipline to keep rewarding long-term shareholders with consistent increases in dividends, that you will generate market beating returns over time.

5) You Are Responsible For Your Investing Decisions

Dave Van Knapp, who is the author of The Top 40 Dividend Stocks of 2014, wrote an interesting article about personal responsibility in investing. Every investor has a duty to themselves to do proper due diligence, prior to purchasing any investment.

Thank you for reading Dividend Growth Investor site. I am also on Twitter, if you are interested in following me on another platform, where I post about recent trades I have made.

Full Disclosure: Long KO, one share of BRK.B and short puts on GE, MO and WFC