Sustainable investing is gaining popularity, but it comes with its own set of risks. You might worry about greenwashing or lower returns. Don’t let these concerns stop you from positively impacting your money. You can reduce risks in sustainable investing by doing thorough research and diversifying your portfolio. To start, look closely at companies’ ESG […]

The post Insider Tips: Choose the Right Investment Strategy for Your Business appeared first on Dividend Power.

Choosing the right way to invest is key for a business to succeed and grow. Whether you are new or aiming to expand, it’s important to pick a strategy that matches your goals, what you have, and how much risk you can take. The correct business investment strategy can boost your gains, handle risks well, and help you reach long-term goals. This guide covers five essential points to consider when creating a business investment plan to secure your and your business’s future.

Getting the Necessary Funding

The first step in setting up a good investment plan is ensuring you have the funds needed for your goals. Getting enough funds is key for buying gear, growing your business, hiring skilled people, or boosting your ads. Many companies explore external funding options, such as business loans.

A business loan can provide the funds for new or ongoing investment plans. Loans can come from banks, credit unions, and special business lenders. Each lender has its own rules, interest rates, and payback terms, so it’s smart to weigh your choices to find one that matches your business style. 

One way to find a reputable lender with excellent terms and reliable security all in one place is to learn more from customer reviews and expert insights. Discover the trusted options available to make a confident, informed choice.

Moreover, for some fields or areas, grants and government loans might give cheaper funding options. Crowdfunding and private equity investors are other ways, but each has its own demands, like on shares or decision-making power. Carefully looking at your business needs and payback ability will guide you to the right funding source and help lay a strong base for your investment plan.

Diversifying Your Investments

After securing funds, think about diversifying your investments. Diversifying helps reduce risks by placing assets in different types. This keeps your business strong during market swings. A balanced approach could mean putting money into real and non-physical items, like real estate, machinery, software, marketing, and research.

For example, investing in machinery and software promotes growth and prepares your business for technological changes. Some companies also invest in hiring skilled professionals or offering specialized training, leading to more productivity and fresh ideas. Diversifying helps avoid the risks tied to one area and creates a more steady and flexible mix of investments that can handle market or industry shifts.

Aligning with Industry Trends

Another important part of building an investment plan is keeping up with what’s happening in your industry. Each field has its own unique chances and hurdles, and staying in line with the latest trends can help you make wiser choices likely to bring good returns. By diving deep into your sector, you can spot where new ideas or growth might offer significant advantages.

For example, if you’re in tech, putting money into cybersecurity or AI could match well with what the market wants. Plus, with around 6.5 cyberattacks daily, you’ll be protecting your business. In contrast, those in hospitality might gain from going green or boosting the guest experience. 

Reading industry magazines, attending events, or joining groups can keep you informed. Investing in growing areas establishes your company as a leader, making it stronger and more relevant in the market.

Assessing Your Risk Tolerance

Every business investment strategy comes with a risk. Knowing how much risk your business can take is critical to making wise choices. Risk tolerance varies a lot between industries, stages of growth, and business goals. Some companies might choose a safe path, opting for low-risk investments with steady returns. Others, like startups, might go for high-growth chances with more risk but promise significant gains. 

To figure out your risk tolerance, consider your cash flow stability, existing debts, and the overall economy. Assessing risk helps you mix high-risk, high-reward options with safer ones for a balanced portfolio. For example, a business with steady cash flow might fund innovative projects that could shake up the market, while one with less money might prefer safer investments like bonds. Balancing different risks ensures you’re not too exposed to high-risk choices, which can harm your finances when the economy dips.

Bottom Line About a Business Investment Strategy

Picking the best business investment strategy is an ongoing task that needs thoughtful planning and constant review. Securing funds, diversifying investments, and staying aligned with market changes contribute to sustainable growth. Knowing how much risk you can handle and planning for future gains lets you make choices that help both your current desires and future dreams. By sticking to these ideas, you can make a steady and flexible plan that helps your business grow strong in a challenging market.

This is a paid guest post.

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The post Insider Tips: Choose the Right Investment Strategy for Your Business appeared first on Dividend Power.

Even before taking office, a president-elect’s actions signal the direction of the incoming administration and its impact on the economy. Donald Trump’s cabinet nominees have created a firestorm in Congress and a fire sale in the stock market.  

In addition, Trump has demanded that those controversial appointees take office without being confirmed by the Senate. That has triggered outrage by defenders of the Constitution’s principle of separation of powers. 

Markets Decline 

All three major stock markets dropped last week. The Dow Jones Industrial Average tumbled 305 points or .7 percent. The S&P 500 dropped 1.3 percent and the Nasdaq composite average fell 2.2 percent.

In short, the markets have done a U-turn after a brief post-election “Trump bump.” Many businesses and investors assumed Trump would cut taxes, regulations, and government oversight of business. As a result, they felt that would lead to higher profits. 

Stock prices for banks, small U. S. companies, and cryptocurrencies benefited the most. 

However, the nomination of controversial cabinet appointments has brought the party on Wall Street to an end for now. Those nominees have been criticized for being unqualified or corrupt. 

Destroying the Balance of Power

Trump was haunted on the campaign trail by a comment he made about being a dictator on his first day in office. He clarified that he would use dictatorial powers to close the border and promote oil drilling. However, various supporters close to Trump have expanded the dictator idea to include political retribution.

Dictators appoint government officials and change laws at will and without accountability. 

Trump tried to change a law by decree in his first administration when he signed an executive order to eliminate the Affordable Care Act (ACA) often referred to as Obamacare. However, the Constitution prohibits a president from overturning a law.

Trump is now trying to appoint his cabinet without the Senate performing its constitutional (Article ll, Section ll, Clause ll) responsibility to “advise and consent.”

Circumventing the Senate

Except in emergencies, presidents submit cabinet nominations to the Senate for review. In almost all cases, those nominations are submitted to a committee, such as Justice for review of a proposed attorney general.

The committee does a background check, examines experience, and conducts a public hearing.

The committee submits a recommendation to the full Senate which then votes on the nomination. A simple majority is required to confirm. With Republicans holding a 53 to 47 advantage – Trump’s nominees would normally breeze through this process.

However, these are not your nominal nominees.  As a result, Trump is trying to get around a transparent Senate confirmation.

Recess Appointments

Although the Constitution designates the Senate to review and vote up or down on cabinet appointments – there is a loophole.

Trump is reaching back to the 18th century to find a 21st century solution for installing cabinet members without a public hearing.

When the nation was founded there were no planes, trains or automobiles. If a senator was in his (women could not serve then) home state it might take weeks – even months to get to Washington. As a result, the founders allowed for “recess appointments.” These are presidential appointments made during a Senate recess and are not subject to review.

Trump demanded recess appointments in a November 10 statement on X. It said in part:

“Any Republican Senator seeking the coveted LEADERSHIP position in the United States Senate must agree to Recess Appointments (in the Senate!), without which we will not be able to get people confirmed in a timely manner. Sometimes the votes can take two years or more. This is what they did four years ago, and we cannot let it happen again. . .”

Newly elected Senate Majority Leader John Thune (R-S.D.) fell in line quickly. However, he also seemed to perform some political contortions.

In a Fox News interview Thursday, Thune said, “I think that all options are on the table, including recess appointments.”

However, in the same interview, Thune said, “But obviously, there is a process whereby we get down and scrub all these nominees and figure out whether or not, one, they’re qualified and are they people who are fit to hold these offices.”

That process is called a confirmation hearing. They do not take place while the Senate is in recess.

Test to Checks and Balances

The man Thune defeated 20 years ago to become a senator, former minority leader Tom Daschle has a different view of Trump’s effort to side-step senate scrutiny.

“Trump has promised to be a dictator on day one but has already started before day one,” Daschle told the New York Times. “This is a major test to our system of checks and balances. The Congress must demonstrate its commitment to its constitutional role. And it is critical that it does it now. Failure to do so is an acknowledgment that the president’s promise will become the reality.”

In addition to circumventing the Constitution and Senate, not having confirmation may lead to some cabinet members who are unfit for their jobs.

“None of these candidates, I’m sure, were vetted,” said David Marchick, dean of the Kogod School of Business at American University and co-author of “The Peaceful Transition of Power”. “It’s all just spontaneous decisions by Trump and then announcement by tweet. No process, no interviews, no vetting, just chaos. He had a mandate to deal with the price of eggs. The question is: Did the mandate extend to this craziness?”

Most Troubling Nominees

A president makes thousands of appointments. Cabinet members are the most consequential. With that in mind, let’s review three of the most controversial of Trump’s nominees.

Robert F. Kennedy, Jr.

Perhaps no nomination has jarred the health sector more than that of Robert F. Kennedy Jr. The day after Trump announced Kennedy as his candidate for Secretary of Health and Human Services – pharmaceutical companies saw their stocks take a dive. 

Moderna was trading down 2.92 points over the weekend at 36.85. Pfizer was off 1.22 points to 24.80 while Novavax closed up .10 at 7.32 after dipping Friday morning by 2.8 percent. 

Kennedy has campaigned against vaccines founding the Children’s Health Defense. That group claims that the childhood vaccine schedule is linked to autism. Once more, he called the Corona vaccine “the deadliest vaccine ever made.”He has also promoted other medical ideas debunked by scientists.

Matt Gaetz

The idea of Matt Gaetz as attorney general has not directly spooked financial markets – but it has created a stir on Capitol Hill.

Gaetz resigned his seat in the house Wednesday “effective immediately” right after Trump decided to tap him to be attorney general. House Speaker Mike Johnson told reporters that Gaetz quit so his seat could be filled sooner. However, there is wide speculation that Gaetz’s quick exit was an effort to prevent an ethics report from being released.

The House Ethics Committee was scheduled to release their probe of misconduct charges against Gaetz on Friday. However, since Gaetz is no longer a member of the House, the report may not be released. 

The committee has been investigating several charges against Gaetz – including that he had sex with a minor. Gaetz has always denied the charges. However, John Clune, attorney for a woman who testified before the committee that she had sex with Gaetz, has called on the committee to make their findings public. 

Other witnesses and some lawmakers have also called for the release of the committee report. Johnson is not one of them. However, even if the report is not officially released, it is the sort of thing that could get leaked.   

Pete Hegseth

A weekend host on the Fox News morning show, “Fox and Friends,” Pete Hegseth served as an officer in the Army National Guard with tours in Afghanistan, Iraq, and Guantanamo Bay. However, he has never served in a senior military position and has no national security experience.

Like Gaetz and Trump – Hegseth has a sexual allegation in his past.  A woman alleged that Hegseth assaulted her following a 2017 Republican women’s event in California. No criminal charges were brought, but Hegseth paid his accuser in a settlement a few years later. 

Trump considered him twice during his first administration for roles as under secretary in the Department of Defense and Department of Veterans Affairs. He was vetted for those posts by Justin M. Higgins, a former opposition researcher for the Republican National Committee.

Higgins writes that he thinks Hegseth was tapped for the top Pentagon job, because of his devotion to Trump.

“Unfortunately, these Trump-friendly qualities also position him as perhaps one of the least qualified picks for secretary of defense we’ve seen,” writes Higgins.

Hegseth was “unqualified for the more junior positions he was being considered for in 2016, and eight additional years spent at Fox News has not made him any more qualified to run the Department of Defense,” noted Higgins.       

The Road Ahead

The list of proposed Trump appointees with sketchy backgrounds and lack of qualifications is growing. That not only undermines the stability of markets – it threatens democracy. The question is whether the Senate will do its constitutional duty or step aside to make way for a dictatorship.

Read More:

• Caffeine May Impact Gut Health Unexpected Discovery Finds
• Fighting Rising Prescription Drug Prices

9 Signs It’s Time to End Your Active Trading Career and Invest Long-Term for Maximum Gains

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-26093" title="9 Signs It’s Time to End Your Active Trading Career and Invest Long-Term for Maximum Gains" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-olly-926390.jpg" alt="

Active trading can be exhilarating, offering the thrill of quick gains and the adrenaline of market movements. However, this fast-paced approach can also lead to stress, burnout, and financial instability. If you’re experiencing any of the following signs, it may be time to transition to a long-term investment strategy that can yield more consistent and sustainable gains.

 ::Pexels” width=”1280″ height=”853″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-olly-926390.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-olly-926390-1024×682.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-olly-926390-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-olly-926390-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

Active trading can be exhilarating, offering the thrill of quick gains and the adrenaline of market movements. However, this fast-paced approach can also lead to stress, burnout, and financial instability. If you’re experiencing any of the following signs, it may be time to transition to a long-term investment strategy that can yield more consistent and sustainable gains.

1. Consistent Losses

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25941" title="1. Consistent Losses" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-andrew-3132388.jpg" alt="

If you find yourself consistently losing money despite your best efforts, it might be a signal that active trading isn’t suited for you. A pattern of losses can take a toll on your confidence and finances. Transitioning to a long-term investment strategy may help you recover and build wealth over time.

 ::Pexels” width=”1280″ height=”853″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-andrew-3132388.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-andrew-3132388-1024×682.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-andrew-3132388-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/11/pexels-andrew-3132388-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

If you find yourself consistently losing money despite your best efforts, it might be a signal that active trading isn’t suited for you. A pattern of losses can take a toll on your confidence and finances. Transitioning to a long-term investment strategy may help you recover and build wealth over time.

2. Increased Stress and Anxiety

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25420" title="2. Increased Stress and Anxiety" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-element5-973401.jpg" alt="

Active trading can be emotionally taxing. If the constant monitoring of markets, news, and price fluctuations is causing you significant stress or anxiety, it might be time to step back. Long-term investing allows for a more measured approach, helping to reduce emotional strain and create a more stable financial future.

 ::Pexels” width=”1279″ height=”854″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-element5-973401.jpg 1279w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-element5-973401-1024×684.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-element5-973401-768×513.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-element5-973401-750×500.jpg 750w” sizes=”(max-width: 1279px) 100vw, 1279px” />

Active trading can be emotionally taxing. If the constant monitoring of markets, news, and price fluctuations is causing you significant stress or anxiety, it might be time to step back. Long-term investing allows for a more measured approach, helping to reduce emotional strain and create a more stable financial future.

3. Lack of Time and Resources

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25333" title="3. Lack of Time and Resources" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-vika-glitter-392079-1650209.jpg" alt="

Successful active trading requires time, research, and resources. If you’re finding it increasingly difficult to dedicate the necessary time to analyze markets and make informed decisions, you may not be able to keep up with the demands of trading. A long-term investment strategy can be more manageable and require less constant oversight.

 ::Pexels” width=”1280″ height=”853″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-vika-glitter-392079-1650209.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-vika-glitter-392079-1650209-1024×682.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-vika-glitter-392079-1650209-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-vika-glitter-392079-1650209-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

Successful active trading requires time, research, and resources. If you’re finding it increasingly difficult to dedicate the necessary time to analyze markets and make informed decisions, you may not be able to keep up with the demands of trading. A long-term investment strategy can be more manageable and require less constant oversight.

4. Missed Opportunities

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25260" title="4. Missed Opportunities" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-olly-3760778.jpg" alt="

If your focus on day trading prevents you from recognizing long-term investment opportunities, it might be time for a change. Long-term investments can capitalize on the market’s overall growth, allowing you to benefit from compounding returns that active trading often overlooks.

 ::Pexels” width=”1280″ height=”853″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-olly-3760778.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-olly-3760778-1024×682.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-olly-3760778-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-olly-3760778-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

If your focus on day trading prevents you from recognizing long-term investment opportunities, it might be time for a change. Long-term investments can capitalize on the market’s overall growth, allowing you to benefit from compounding returns that active trading often overlooks.

5. Emotional Decision-Making

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25255" title="5. Emotional Decision-Making" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-cottonbro-6951522.jpg" alt="

Active trading can lead to impulsive decisions driven by fear or greed. If you find yourself making trades based on emotions rather than analysis, it may be a sign that you’re not in control of your trading strategy. Long-term investing emphasizes a disciplined, strategy-driven approach, minimizing the impact of emotions on your financial decisions.

 ::Pexels” width=”1280″ height=”853″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-cottonbro-6951522.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-cottonbro-6951522-1024×682.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-cottonbro-6951522-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-cottonbro-6951522-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

Active trading can lead to impulsive decisions driven by fear or greed. If you find yourself making trades based on emotions rather than analysis, it may be a sign that you’re not in control of your trading strategy. Long-term investing emphasizes a disciplined, strategy-driven approach, minimizing the impact of emotions on your financial decisions.

6. Burnout from Constant Monitoring

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25253" title="6. Burnout from Constant Monitoring" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-thisisengineering-3861969-1.jpg" alt="

The need to constantly monitor market movements can lead to burnout. If you’re feeling fatigued from staying glued to screens and tracking every market fluctuation, it may be a sign that you need a break. Long-term investing offers a more relaxed approach, allowing you to focus on broader market trends rather than daily price changes.

 ::Pexels” width=”1280″ height=”854″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-thisisengineering-3861969-1.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-thisisengineering-3861969-1-1024×683.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-thisisengineering-3861969-1-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-thisisengineering-3861969-1-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

The need to constantly monitor market movements can lead to burnout. If you’re feeling fatigued from staying glued to screens and tracking every market fluctuation, it may be a sign that you need a break. Long-term investing offers a more relaxed approach, allowing you to focus on broader market trends rather than daily price changes.

7. A Desire for Financial Stability

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25218" title="7. A Desire for Financial Stability" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-anna-nekrashevich-6801647-1.jpg" alt="

If your goal is to build long-term wealth and achieve financial stability, active trading may not align with that objective. A long-term investment strategy, focusing on solid, fundamental assets, can provide the stability and growth potential you seek, allowing for gradual wealth accumulation over time.

 ::Pexels” width=”1279″ height=”918″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-anna-nekrashevich-6801647-1.jpg 1279w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-anna-nekrashevich-6801647-1-1024×735.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-anna-nekrashevich-6801647-1-768×551.jpg 768w” sizes=”(max-width: 1279px) 100vw, 1279px” />

If your goal is to build long-term wealth and achieve financial stability, active trading may not align with that objective. A long-term investment strategy, focusing on solid, fundamental assets, can provide the stability and growth potential you seek, allowing for gradual wealth accumulation over time.

8. Increasing Commissions and Fees

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-25214" title="8. Increasing Commissions and Fees" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-liza-summer-6347720.jpg" alt="

As you trade more frequently, the costs associated with commissions and fees can accumulate significantly. If you find that these expenses are eating into your profits and making it difficult to achieve a net gain, it may be time to reconsider your strategy. Long-term investing typically incurs fewer transaction costs, allowing for more capital to remain invested and grow over time.

 ::Pexels” width=”1280″ height=”853″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-liza-summer-6347720.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-liza-summer-6347720-1024×682.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-liza-summer-6347720-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-liza-summer-6347720-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

As you trade more frequently, the costs associated with commissions and fees can accumulate significantly. If you find that these expenses are eating into your profits and making it difficult to achieve a net gain, it may be time to reconsider your strategy. Long-term investing typically incurs fewer transaction costs, allowing for more capital to remain invested and grow over time.

9. Lack of a Clear Trading Strategy

<img loading="lazy" decoding="async" class="alignnone size-full wp-image-24700" title="9. Lack of a Clear Trading Strategy" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-karolina-grabowska-4467737.jpg" alt="

If you’re entering and exiting trades without a well-defined strategy or plan, it’s a strong indication that active trading may not be for you. A lack of a clear approach can lead to erratic performance and poor decision-making. Transitioning to long-term investing encourages a strategic focus on asset selection based on fundamental analysis, allowing for a more coherent and effective investment strategy.

 ::Pexels” width=”1280″ height=”853″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-karolina-grabowska-4467737.jpg 1280w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-karolina-grabowska-4467737-1024×682.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-karolina-grabowska-4467737-768×512.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-karolina-grabowska-4467737-750×500.jpg 750w” sizes=”(max-width: 1280px) 100vw, 1280px” />

If you’re entering and exiting trades without a well-defined strategy or plan, it’s a strong indication that active trading may not be for you. A lack of a clear approach can lead to erratic performance and poor decision-making. Transitioning to long-term investing encourages a strategic focus on asset selection based on fundamental analysis, allowing for a more coherent and effective investment strategy.

Final Thoughts

<img loading="lazy" decoding="async" class="alignnone wp-image-24707 size-full" title="Final Thoughts" src="https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-buro-millennial-636760-1438081.jpg" alt="

In conclusion, recognizing the signs that it may be time to end your active trading career is crucial for your financial well-being. Transitioning to a long-term investment approach can help you reduce stress, focus on stability, and ultimately achieve greater financial success. Embrace the shift, and start building a secure financial future. 

 ::Pexels” width=”1279″ height=”854″ srcset=”https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-buro-millennial-636760-1438081.jpg 1279w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-buro-millennial-636760-1438081-1024×684.jpg 1024w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-buro-millennial-636760-1438081-768×513.jpg 768w, https://www.ourdebtfreefamily.com/wp-content/uploads/2024/10/pexels-buro-millennial-636760-1438081-750×500.jpg 750w” sizes=”(max-width: 1279px) 100vw, 1279px” />

In conclusion, recognizing the signs that it may be time to end your active trading career is crucial for your financial well-being. Transitioning to a long-term investment approach can help you reduce stress, focus on stability, and ultimately achieve greater financial success. Embrace the shift, and start building a secure financial future.

🎙️ Episode #370 – We break down how conventional and DSCR, financing can help you overcome loan caps and credit snags, so you can keep…

The post The Best Ways to Finance & Scale a Rental Portfolio (Even With No Job!) appeared first on Coach Carson.

Greenwashing has become a big problem in sustainable investing. Companies and funds often make false claims about being eco-friendly to attract investors. You need to be careful not to fall for these marketing tricks. Greenwashing happens when businesses exaggerate or lie about their sustainability. Some common signs include vague language, misleading images, or focusing on […]

Welcome to the “Investing for Beginners” podcast, where we explore essential strategies for successful investing. In this episode, we introduce the PIVOT framework, focusing on portfolio management, diversification, and balancing risk and reward to enhance your investment journey.

• 00:00:00 – Introduction to podcast and unique episode format.
• 00:00:51 – Overview of the PIVOT framework for investing.
• 00:01:05 – Focus on portfolio management’s vital role.
• 00:02:00 – Importance of conviction and diversification in investments.
• 00:03:15 – Buffett’s punch card analogy for investment strategy.
• 00:04:00 – Difficulty in finding multiple great monthly investments.
• 00:05:01 – Discussion on position sizes and portfolio balance.
• 00:06:11 – Need for industry diversification in portfolios.

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The post Understanding the PIVOT Framework in Investing: Focus on Portfolio Management appeared first on Investing for Beginners 101.

In 2012, I retired from my engineering career and our household earned income decreased by 65%. Ouch! Most households can’t deal with this kind of reduction, but I was prepared. We already lived frugally and I ramped up our passive income. I invested in dividend stocks, rentals, and worked on some side hustles. I was lucky because everything worked out very well over the last 12 years. Our FIRE income grew to surpass our expenses.

It’s been a few years since I shared our taxable account. Today, I’d like to give an update on our dividend portfolio.

Dividend income is my favorite form of income because it is very passive. I don’t have to do much and the dividends will keep rolling in AND grow. I used to like rental properties, but they are too much work. These days, I don’t have time to be a DIY landlord anymore. That’s why I invest in Real Estate Crowdfunding. I can benefit from the real estate investment, but I don’t have to fix the toilet. The only problem with real estate crowdfunding is tax filing. Some sponsors are chronically late with the K1 forms and I have to file a tax extension every year. It is annoying, but not a deal breaker. Also, the pandemic and high interest rates caused problems for many sponsors. Some projects didn’t perform as well as expected. Anyway, let’s get back to the dividend portfolio.

Evolution of the dividend portfolio

Before I retired, our taxable account was invested in index funds and growth stocks. When I retired, I wanted to increase our passive income so I focused more on dividend growth stocks. These companies increase their dividends consistently. At that point, I assumed Mrs. RB40 wanted to retire in a few years.

We set her tentative retirement target date to 2020. However, it didn’t work out as I imagined. Mrs. RB40 is one of those people who want to be productive and contribute to society. She could retire if she wanted to, but she prefers to work. After I understood her point of view, I stopped investing in dividend stocks. Dividend income is nice, but you have to pay tax every year. That’s why I have went back to growth stocks over the last few years. Luckily, they have done extremely well lately.   

Dividend income

Here is the chart of our dividend income since 2012.

It grew steadily from 2012 and topped out in 2019. If I kept my focus on dividends, it’d probably be much higher today. I get envious every time I read Bob’s dividend report. Their dividend portfolio generates over $4,500 every month! That’s amazing. But we did okay too.

Growth of portfolio

Here is the value of our dividend portfolio.

I got lucky over the last few years and our portfolio grew quite a bit. Since 2019, I haven’t added much money to this portfolio because I wanted to increase our passive income with real estate crowdfunding. That worked out pretty well too. You can see the RE crowdfunding performance here.

Individual stocks

Here is the spreadsheet.

For 2024, the overall yield is 1.81%. That’s pretty low for a dividend portfolio.

The performance looks better than it really is. I got rid of some losers over the years for tax deductions. Anyway, let’s look at some highlights.

Best percentage gain – Eli Lilly

I purchased LLY in 2011. It was my first dividend stock. Since then, LLY gained 2,044%! They had some setbacks this year, but LLY is still our best dividend investment. Recently, the total dividends received ($3,683) surpassed the price we paid for the stock ($3,481). It’s all gravy from here. The dividend yield is quite low at 0.7%, but that’s because the stock price increased so much over the years.

Best $ gain – Nvidia

By 2020, I stopped buying new dividend stocks because I realized Mrs. RB40 wanted to keep working. I refocused on growth stock and got very lucky. At the time, Facebook changed its name to Meta to pivot onto the Metaverse. I was onboard and purchased Nvidia, Meta, and Unity. Unfortunately, the Metaverse hasn’t pan out as Mark Zuckerberg envisioned. All the Metaverse related stocks dropped, but I hung on. However, AI exploded onto the scene and gave Nvidia a huge boost. I sold off 60% of my NVDA holding to take profit. That wasn’t very smart because the stock rocketed up even more. Fortunately, I knew enough to hold on to some shares. Anyway, the 1,000 Nvidia shares in my dividend portfolio have $126,480 unrealized gains. Jackpot! The 60% I sold off was in my Roth IRA. META also did very well recently. It is in my Roth IRA as well.  

Only 2 losers left – U and INMD

I got rid of many losers over the years and only have 2 left – Unity and InMode. I probably should get rid of these stocks too.

30 yrs bonds

I have $2,000 of 30-years U.S. Treasure bond at 4.125%. I figured I’d sell these off once the rates drop. We also had a bunch of 1-year bonds that matured earlier this year. I moved the money into the Total Stock Market Index Fund, VTSAX.

2024 clean up – INTC, LEG, NLY, WU, EMN, and DIS

Finally, I sold off all my INTC stocks. I should have sold them off when they were $60/share. I guess I held onto them for sentimental reasons. I also got rid of LEG, NLY, WU, and EMN. All these companies had some problems.

As for Disney, I purchased them in 2019 when they paid good dividends. Unfortunately, Disney cut dividends during the pandemic and performed badly over the last few years. They got a pop last week so I sold off some shares.

I Bonds

We have about $70,000 in Series I Savings Bonds at the US Treasury. This will be our cash cushion when Mrs. RB40 finally retires. I plan to build this position to about $200,000. If the market crashes, we can dip into I bonds as needed. In 2024, we’ll receive about $2,150 in interest from I bonds. The I bonds aren’t included in the dividend portfolio above. Next week, I’ll transfer all the money market shares to I bonds, about $30,000.

Going forward

Going forward, I plan to avoid individual stocks. According to Vanguard, my rate of return is 12.3% annually. That’s pretty good, but it was all luck. If we remove NVDA, I’d be underperforming the index fund. My dividend portfolio had quite a few stinkers. Namely, I held on to INTC stocks 24 years too long. I should have sold them off a long time ago.

The problem is I don’t follow the stock market anymore. Some dividend stocks degraded over the years and aren’t good companies anymore. I usually miss the problem until much later. One such company is Leggett & Platt, LEG. They paid good dividends when I purchased the stock years ago. However, the business struggled recently. If I kept track, I would have known to sell the stock earlier.

From now on, I’ll channel everything into index funds and I bonds. At this point, I need to simplify our finances. Mrs. RB40 will need to take over at some point and I don’t want to confuse her with individual stocks. Anyway, I’m pretty happy with our dividend portfolio so far. Everyone looks like a genius when the stock market is going up, right?  

Do you invest in dividend stocks? What’s your strategy?

The post Dividend Growth Portfolio 2024 appeared first on Retire by 40.

The post A Review of The Sure Dividend Newsletter appeared first on Dividend Power.

In this article, I provide a review of the Sure Dividend Newsletter, which is one of the best dividend stock newsletters. Before we proceed, I want to disclose that I am an Affiliate of Sure Dividend. This post provides affiliate links to the Dividend Pro Plan, which includes the Sure Dividend Newsletter. This means I earn a commission for any purchases you make at the Affiliate’s website through these links. This will not incur additional costs for you. Please read my disclosure for more information. In addition, I provide investment research analyses on several stocks for Sure Dividend’s Sure Analysis Research Database.

Sure Dividend Newsletter Review – What is Sure Dividend?

In this review, I want first to answer the question, “What is Sure Dividend?” Sure Dividend is an investment site and research service run by my fellow dividend growth investor, Ben Reynolds. The website was started in 2014 and built a large following by providing free content and lists of dividend stocks.

The Sure Dividend motto is “High-Quality Dividend Stocks, Long-Term Plan,” as their website states. The dividend investing newsletter aims to “help individual investors build high-quality dividend growth portfolios for the long run.” Their goal is “…financial freedom through an investment portfolio that pays rising dividend income over time.” Since I am a dividend growth investor, this fits my dividend investing strategy and long-term plan.

From the perspective of a do-it-yourself or ‘DIY’ investor, Sure Dividend is four services. Sure Dividend features

• Free content in a blog,
• Three premium newsletters,
• Two premium top 10 lists, and a
• Premium database of investment research on individual stocks.

In addition, there is an extensive archive of free articles on the Sure Dividend website. The posts cover a wide array of topics I will discuss below.

Premium Investing Newsletter

The premium investing newsletters are paid services. There are three monthly investing newsletters: The Sure Dividend Newsletter, The Sure Retirement Newsletter, and The Sure Passive Income Newsletter. All three newsletter comes out monthly.

• The Sure Dividend Newsletter covers dividend growth stocks. 
• The Sure Retirement Newsletter covers the best 4%+ yielding stocks.
• The Sure Passive Income Newsletter covers buying and holding stocks with rising income. 

All 3 of these premium newsletters are powered by analysis from the Sure Analysis Research Database. That’s where the Sure Dividend team covers more than 850 income securities quarterly to find the best for their members.

The flagship service is the Side Dividend Newsletter. Click here to start your risk-free 7-day trial now, and save $41/year with coupon code DP41 (which should apply automatically).

I will now discuss the free content and review the Sure Dividend Newsletter.

Sure Dividend Review – The Free Content

Before I review The Sure Dividend Newsletter, let me first discuss the free content. The free content includes many valuable lists of dividend stocks as well as some free analyses.

Free Articles on Dividend Stocks and More

For example, the list of articles for November 2024 is seen in the screenshot below. You can see that the free content includes dividend stock lists, free MS Excel spreadsheets, an analysis of a few stocks that do not pay a dividend and the potential for them to do so, and other content.

This free content got me interested in and following Sure Dividend and the investing newsletter in the first place. Few investment sites and services offer as much quality free content for the DIY or self-directed small investor. Sure Dividend also provides quite a bit of free analyses on other investment sites. For example, Sure Dividend wrote an article for my blog about Procter & Gamble and now publishes monthly articles on Dividend Power.

The most popular articles are

• The Dividend Aristocats List
• The Higher Dividend Stocks List
• The Monthly Dividend Stocks List
• The Dividend Kings List
• The Blue Chip Stocks List

Free Excel Spreadsheets

The free spreadsheets are the other beneficial and popular free content on the Sure Dividend website. This list includes spreadsheets of the

• Dividend Kings
• Blue Chip Stocks
• Dividend Aristocrats
• Dividend Achievers
• Dividend Champions
• Dividend Contenders
• Dividend Challengers
• High Dividend Stocks
• Cheap Dividend Stocks
• Monthly Dividend Stocks
• Dividend Stocks by Payment Date
• Index Lists, Industry & Sector Lists
• Guru and Hedge Fund Lists, and more.

You can see in the screenshot below the free content from the Dividend Kings spreadsheet. It covers much of the valuable data investors need to evaluate and perform investment research on a stock. The other part is that you can use the data in the spreadsheet in your spreadsheets.

The Sure Dividend Newsletter – Review

Now let’s review The Sure Dividend Newsletter, the flagship investing newsletter Sure Dividend provides. As a DIY or self-directed dividend growth investor, I am primarily attracted to The Sure Dividend Newsletter. 

This newsletter covers “high-quality dividend growth stocks” that are investment ideas for you. Ideally, that is what I want to invest in, high-quality stocks that raise their dividend annually with a low probability of a dividend cut or suspension. The detailed newsletter comprises stock analyses, tables, charts, and commentary. The newsletter comes out monthly.

Why Dividend Growth Stocks?

One may ask, why focus on dividend growth stocks? Well, as my readers know, dividend growth stocks tend to outperform other categories, including stocks that pay a constant dividend, stocks that do not change the dividend, stocks without a dividend, stocks that cut or eliminate the dividend, and an equally weighted S&P 500 index.

Further, dividend growth stocks tend to have lower volatility as a group compared to the other categories. Take a look at the table below. The table supports my statements. Dividend growth stocks have higher annual total returns and lower volatility as measured by beta and standard deviation over the long haul—the differences between stocks that pay a dividend and those that don’t are stark.

This Sure Dividend Newsletter draws upon the 850+ securities in the Sure Analysis Research Database to evaluate and rank dividend growth stocks.

The newsletter ranks stocks based on their dividend risk ratings, expected total returns, and dividend yields. The dividend risk scores should be ‘A’ or ‘B.’ The expected total returns should be greater than the broader market – and the higher, the better. Finally, the dividend yield should be greater than 2%. As a point of reference, the S&P 500’s dividend yield is currently about 1.25%.

Each month the Sure Dividend team provides a list of 10 stocks along with detailed analyses. In general, these are undervalued stocks with a margin of safety. They also include over 850 securities with risk rankings. The detail mentioned above is why the Sure Dividend Newsletter is one of the best dividend stock newsletters.

Opening Thoughts from Sure Dividend

The Sure Dividend Newsletter includes opening commentary from the authors that are often thought-provoking. For instance, in a past newsletter, the topic was “Do Recession-Resistant Stocks Stay Recession Resistant?” Other past issues include:

• End-of-Year Tax-Loss Harvesting
• Why Invest in Dividend Stocks?
• The Taxation of Dividends
• The Similarities Between Dividend Growth Investing and Warren Buffett’s Investing Style
• On Branded Consumer Goods Companies

The opening thoughts are about one page long, so it is easy to read and provides relevant information for small investors.

Sell Recommendations

The following section includes sell recommendations. These are equities that Sure Dividend has previously recommended as buys but now recommend as sells. The main reason is they are overvalued with low expected total returns. However, these stocks have appreciated in many cases and may be trading above their fair value estimates.

Sure Dividend Newsletter Review – The Sure Dividend Top 10 List

Next, a list of stocks called “The Sure Dividend Top 10” comprises the top 10 stocks in Sure Dividend’s investing research database for the month’s newsletter. This list is one of the most important and popular sections. It is here that many readers likely get investment ideas for further research. It is an excellent starting point. I include a screenshot from an older newsletter in January 2020 as an example.

The chart above includes both actual current data and metrics based on analysis. The top 10 list covers the company name, ticker, Sure Dividend’s Risk Score (a proprietary score), current stock prices, estimated fair value, expected value return, dividend yield, dividend payout ratio, the expected growth of the dividend, and expected total annualized return or ‘ETR.’

At the bottom of the same page, a comparison of an equal-weighted portfolio of the Top 10 list with the S&P 500 is shown.

Sure Dividend Review – Analysis of the Top 10 Stocks

The central part of the Sure Dividend Newsletter is a deep-dive analysis of the stocks in The Sure Dividend Top 10 recommendations every month. This section includes about one page of analysis commentary, one page of data tables, charts of dividend yield history and stock price, charts on fundamentals, and a bar graph on valuation analysis.

Analysis Commentary

The analysis commentary section in the Sure Dividend Newsletter includes an overview & of current events, competitive advantage & recession performance, growth prospects, valuation & catalyst. The analysis commentary ends with key statistics, ratios & metrics. Below is an example of International Business Machines (IBM) from January 2020.

Three financial data tables cover 10 years of trailing data from the income statement, balance sheets, and profitability & per share metrics. This data is helpful for investors who have held a stock for many years and want to see trends. The data can also be used for your calculations and analysis.

Charts

The charts in the Sure Dividend Newsletter are helpful for historical comparisons. I show an example of IBM again from the January 2020 newsletter. In addition, the chart on dividend yield and price is helpful. As you are well aware, dividend yield and price are inversely related. But you can check if the dividend yield is above or below trailing periods as a measure of over or undervaluation.

Closing Thoughts

Next, Ben and his team at Sure Dividend provide closing thoughts for the analysis section in the newsletter. This is similar to opening thoughts. This page ends with the disclaimer.

Real Money Portfolio

The section tracks actual investments based on the Top 10 list each month. Sure Dividend invests $1,000 in the highest-ranked security they do not own or own the least in the portfolio. Money will not be added to specific stock if it pushes the sector weighting to over 30% to maintain diversification and reduce risk. 

The target number of stocks in the Sure Dividend portfolio is a maximum of 30. Once 30 stocks are reached, Sure Dividend will buy the highest-ranked stock in both the portfolio and the top 10 that they own the least of, up to 10% of the total portfolio. Sell decisions are based on the same criteria used in the Sure Dividend Newsletter.

Buying & Ranking Criteria

This section discusses how Sure Dividend comes up with the Sure Dividend Top 10 list each month. The screenshot below is taken from the January 2021 Sure Dividend Newsletter.

This section also covers information on the expected total return.

Portfolio Buying Guide

The following section provides a strategy on how to buy stocks. Sure Dividend states, “Each month invest in the top-ranked security in which you own the smallest dollar amount out of the Top 10.” Of course, this is one allocation strategy, but you can use your own along with the Top 10 list. 

The strategy is simple since you buy the highest-ranked stock if you do not own it. However, if you already own all ten on the list, you purchase the one you own the least. The screenshot below is an example from the January 2021 Sure Dividend Newsletter. Over time you will build a portfolio of about 30 stocks.

Past Recommendations & Sells

This section includes every past buy recommendation that has yet to be sold. It clearly shows the stock, the years since first recommended, the dividend risk score, total return, CAGR, and comparison to the S&P 500 Index’s total return. Past recommendations at or below the sell thresholds are bolded in red. The last two parts of this section include pending sales and sold positions.

The Sure Dividend Newsletter has two sell rules. The first sell rule is dividend-based. The second sell rule is valuation-based.

Sell Rule #1, Dividend-Based Sell Rules: Any past recommendation that reduces or eliminates its dividend is automatically a pending sell. First, we review and analyze these securities to determine when to initiate the final sale. Secondly, any past recommendation with an “F” Dividend Risk Score is examined as a potential sell.

Sell Rule #2, Valuation-Based Sell Rules: Sell past recommendations with expected total returns lower than 3%. Other factors may be considered before selling lower expected total return securities. 

Sure Dividend Review – List of Stocks by Dividend Risk Score & Sector

The following section is a List of Stocks by Dividend Risk Score. This section groups stocks into categories A through F and is sorted by expected total returns from highest to lowest. The last section groups stocks by sector, sorted by dividend risk scores and expected total returns. These rankings don’t always align with the Top 10 list due to additional safety considerations. But it is a place to look for investment ideas.

The eleven sectors for stocks are:

• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Energy
• Financial Services
• Healthcare
• Industrials
• Real Estate
• Technology
• Utilities

What I Like About The Sure Dividend Newsletter?

Sure Dividend Newsletter Review – Who Is Sure Dividend For?

The Sure Dividend Newsletter is for serious ‘DIY’ or self-directed dividend growth investors. The Sure Dividend Newsletter helps build a portfolio of dividend stocks and generate a rising passive income stream regardless of age. In addition, the newsletter provides a wealth of information that one can review and read. 

There is quite a bit of commentary, analysis, and data in the newsletter consolidated into one place for dividend growth investors. This information is beneficial for investors. It is clear from the newsletter that Ben and his team put a significant amount of time and effort into producing it each month.

Structured and Quantitative Method with Qualitative Analysis

I also like that there is a structured, quantitative ranking method mixed with qualitative analysis. Most small investors need a systematic dividend investing method to filter an extensive list of stocks into a smaller usable and unwieldy list. Ben and his team have done that for you by creating the monthly Top 10 list in the Sure Dividend Newsletter. They have also analyzed the stocks for qualitative factors, which are crucial in selecting stocks. 

The Top 10 is a great place to start for most investors looking for investment ideas. One can read the analysis of each stock, look at the tables, check the valuation, and then make some decisions on whether to invest. But, ultimately, the decision is up to you.

Suitable for Investors with a Wide Range of Experience

Beginners can use the Sure Dividend Newsletter, as well as intermediate to more advanced investors. The investing newsletter simplifies the stock selection process and guides how to build a portfolio. Building a portfolio can be challenging. Many DIY investors end up with a hodge-podge of too many stocks. Their portfolio may be too concentrated in specific sectors. Alternatively, their portfolio may not provide adequate diversification. This section is an excellent place to get some information on portfolio building.

Dividend investing and investing, in general, are about information, structure, and decision making. The Sure Dividend Newsletter provides information, data, analyses, and structure. It permits a DIY investor to make decisions knowledgeably. The path of a DIY or self-directed investor is not for everyone. It takes time and effort. However, if this path works for you, then the Sure Dividend Newsletter may help you.

As a final note, there are three newsletters from Sure Dividend.

The Sure Dividend Newsletter covers dividend growth stocks and draws upon the over 700+ stock analyses in the Sure Analysis Research Database.

The Sure Retirement Newsletter covers high-yield securities with a dividend yield of more than 4% for those seeking income.

The Sure Passive Income Newsletter covers buying and holding stocks with rising income.

What is the Price of The Sure Dividend Newsletter?

I hope that you found this review of the Sure Dividend Newsletter useful. Please click here if you are interested in subscribing to The Sure Dividend Newsletter. The link includes the Sure Dividend coupon code, DP41S, which reduces the Dividend Power reader’s price by $41 per year. The regular price for The Sure Dividend Newsletter is $199 a year, and the reduced price through this offer is $158 per year.

Sure Dividend also offers The Sure Retirement Newsletter and The Sure Passive Income Newsletter for the same $158 annually through Dividend Power.

 Please click here to start your 7-day free trial with the DP41S Sure Dividend Coupon code applied which reduces your price from $199/year to $158/year

The post A Review of The Sure Dividend Newsletter appeared first on Dividend Power.

This is what dividend investing is all about!  Investing in dividend stocks allows YOU to earn dividend income, the best passive income stream!  Bias, you better believe it.

Time to dive into Lanny’s October 2024 dividend income results!  Were records set?  Almost to financial freedom?  One day and one month at a time!

Dividend Income

Dividend Income is the fruit from the labor of investing your money in the stock market.  Further, Dividend Income is my primary vehicle on the road to Financial Freedom, which you can see through my Dividend Portfolio.

How do I research & screen for dividend stocks prior to making a purchase?  I use our Dividend Diplomat Stock Screener and trade on Ally’s investment platform (one of our Financial Freedom Products) and on SoFi.

Related: Dividend Diplomat Stock Screener

Related: Financial Freedom Products

Related: 3 Financial Freedom Products

I also automatically invest and max out, pre-tax, my 401k through work and my Health Savings Account.  This allows me to save a TON of money on taxes (aka thousands), which allows me to invest even more.  In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend, aka Dividend Reinvestment Plan or DRIP for short.  This takes the emotion out of timing the market and BUILDS onto my passive income stream!

Related: Tax Strategy – Part 3 to Reduce Taxes & Increase Investment.

Related: The Power of Dividend Reinvesting

Related: Why I Don’t Time or Predict The Market

Growing your dividend income takes time and consistency.  Investing as often, and early, as you can allows compound interest (aka dividends) to work it’s magic.  I have gone from making $2.70 in a single month in dividend income to well over … $10,000+ in a single month.  My dividend income record was set in December of 2021. Was it broken this month?!  The power of compounding and dividend reinvestment is a wonderful component to the portfolio.  Each and every month, whether big or small, I continue to report the passive income that dividend investing provides me.  Why?

*Not pictured is my wife’s dividend income above*

I want to show YOU that dividend investing makes it possible to achieve financial freedom and/or financial independence.  We all start somewhere, but consistently investing, compounding (reinvesting) dividends and keeping it simple, allows you to be in a significantly better position than most.  Further, if I can grow this portfolio and income stream, YOU can too.

dividend income – October 2024

Now, on to the numbers… In October, we (my wife and I) received a dividend income total of $2,327.07.  Wahoo!  We crossed the $2,000 mark for another off-month this year.  We’ll take it!

The amount and number of stocks listed below show you what it means to buy and hold for the long term.  Most of the positions I have owned for YEARS, letting dividend growth and reinvestment do it’s thing.  This is what dividend investing for financial freedom is all about.  The passive income stream is growing at a RAPID pace.

2023 was up 24%.  10+ months down in 2024 and the S&P 500 is still up 26%, and we aren’t slowing down it seems.  Unemployment has actually come down recently, after slowly coming back up.  Fed cut rates again, Bitcoin is on a tear to $100,000.  Donald Trump will be serving another term.  Wild last few weeks!

Here is the breakdown of dividend income for the month, between taxable and retirement (far right column, under “Retirement”) accounts.  In addition, “W” means my wife’s account:

Big Oil with BHP Billiton (BHP) came big with a massive dividend.  Then, you know Philip Morris (PM) is crushing it, almost $200!

Next, Canadian Imperial (CM), one of the big 6 Canadian banks, sent a massive $210 dividend my way.

My wife’s account is really taking full steam ahead, with $65 from Eastman (EMN) and almost $45 from Medtronic (MDT).

I also split out my retirement accounts in the far right column and the taxable account dividends are in the left two columns.  The retirement accounts are composed of H.S.A. investments, ROTH and Traditional IRAs, as well as our work 401(k) accounts.  In total, the retirement accounts brought in a total dividend income amount of $1,044.80 or 44.89% of the dividend income total.  Therefore, the majority of the dividend income came from my taxable account.  LET’S GO!!

Related: Maximizing your Roth for 10 Years… Then Set It & Forget It!

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Dividend Income Year over Year Comparison

2023: 2024:

Our dividend income is UP $317 from prior year!  That’s a nice 15.73% increase, bang!  I needed that, especially after I’ve had a few quiet months of dividend income growth it feels like.

It’s obvious my 401k mutual fund with fidelity – FXAIX – had a massive dividend this year vs. last year, due to new investments into my 401k and dividend growht, that truly carried the torch.

There are a few less names now in 2024, than 2023, such as MDU Resources (MDU) and Haleon (HLN).  This has been the cleanup year for me, love to see that actually.

Time to crack $2,500 next year, let’s go!

Dividend Increases

I received 5 dividend increases this month, and 2 of the my wife and I both got to experience.  Which dividend increase is the best?

The best dividend increase was Visa (V) of course.  Another double digit dividend increase was expected and we received it.  Thank you Visa!

I also want to mention Starbucks (SBUX) came in with a surprisingly high dividend increase, at 7%.  Despite the struggle this year, NEW CEO (aka the Chipotle CEO) and the change they are making, a 7% increase was awesome to receive.

Related: The Impact of The Dividend Growth Rate!

In total, dividend increases created $102.57 in additional passive dividend income.  I would need to invest $2,931 at a 3.50% dividend yield in order to add that income.  Thank you for the increases, as I didn’t have to come up with the capital to create that form of income!

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Dividend Income Conclusion & Summary

The name of the game is to apply what you learn through financial education.  The next steps are to maximize every dollar for investment opportunities and live life on your own terms.  Therefore, my plan is to demonstrate that dividend income can be a revenue engine.  A revenue engine that allows you to take back control of your life.  A revenue engine to help you reach financial freedom.  Dividend investing, once you learn the right way, becomes easier and starts to immensely make sense!

Excited for the future, no doubt.  Furthermore, all of the investing from last year and moves this year, shows that my aim to save 60% of my income, and making every dollar count, has provided the dividend growth.

If you are just starting out on your investment journey and you aren’t sure to start – please see the articles mentioned throughout this post.  We are trying to bring you financial education and help you reach your financial goals.

Further, if you are interested in our dividend stocks to buy, dividend news, stock purchases, etc., please see our YouTube video (below), subscribe to our channel and check us out!  Accordingly, we’ll help break down further investing topics not only on this blog, but by showing you through video!

As always, thank you for stopping by, leave your comments and questions below.  Good luck and happy investing everyone!

The post Dividend Income Summary: Lanny’s October 2024 Summary appeared first on Dividend Diplomats.