Be A Diversified Dividend Investor

Gross said, ?Investing is dominated by the wave of either public opinion or institutional opinion, which moves prices forward. If you are negative and you refuse to believe in the wave, then you can?t surf ?. Newbie investors are always overwhelmed by the managing their own money. In the investment market so many sectors are available to choose products, opinions and strategies. This is investor own decision that in which he/she should invest their capital.

As a dividend investor, I want to suggest a few simple rules for newbies.

  1. You should think like an owner, not a trader: – Stock market looks like a casino where our goal is change as shares? comes change. For a better approach both for our portfolio and our future, is to think like an owner who participate in the rising profits of the business.
  2. Keep an eye on the dividend, not stock prices: – By creating a spreadsheet we can track the dividends. If a company raises their dividend and we want to buy more shares, spreadsheet is a better option to calculate annual dividend income. By the help of spreadsheet we easily claim on that days when market has best price rates.
  3. ETFs is important, consider it: – If you plan to pick individual stocks than? feel free because there are many exchange traded funds for dividend investors. They offer diversification and lower costs than mutual funds. For example the S&P or TSX Canadian dividend aristocrats Index fund (CDZ), Dow Jones Canada Select Dividend Index Fund (XDV) and BMO Canadian Dividend ETF (ZDV).
  4. Remember about fees: – When we put our money in any investment, find how the investment managers or companies? compensate. Sometime it will only for initial investment, sometimes when we withdraw the money, sometimes when investment is going on or sometimes when a combination of the three. The major point is that what you pay, how to pay and when you pay.
  5. Prefer to buy best dividend paying stocks: – There are a lot of companies such as? McDonald?s (MCD), Coca-Cola (KO), Procter & Gamble (PG), and Wal-Mart (WMT), Vanguard and Invesco PowerShares which is good for investors.
  6. ?Dividend reinvested: – If you are at the wealth accumulation point of your life, reinvest dividends this is a great way to build wealth. We can enroll in a company?s dividend reinvestment plan (DRIP).
  7. Remember past year rules: – Warren Buffett says that, : “If you aren?t willing to own a stock for ten years, don?t even think about owning it for ten minutes.”

Wrapping it up

Investors should follow three basic rules; Be careful when we start, have patience, do not spend money without knowing the pros and cons, do study or research of the climate. The key point is that for a successful dividend investor build a diversified portfolio of select dividend stocks with above-average but modest dividend yields payer and plenty of ?free cash flow. Many investors' dreams of their investments mean ?grow up the money. It's good to have dreams but hard to have achieved. Just develop a sense of the past and today. It will become easier and dreams come true.

DividendInvestor.com is a site that has reached out to those that are interested in learning the stock market and that want to find the top dividend stocks. The company provides many valuable resources therefore quickly you will understand about the market and how stocks can make you wealthy. This is one of the most important times in a decade to purchase dividend stocks and turning these ones in a profit with a very low investment.

Dividend Investor provides additional dividend stocks data, information or screening tools, we encourage you to visit the website. http://www.dividendinvestor.com/

A leading source for in-depth research & analysis on dividend paying stocks.

3 thoughts on “Be A Diversified Dividend Investor”

  1. David Apolonio

    I’ve been inspired to build a DiY portfolio because of your articles. May I ask if majority of your portfolio composition are preferred shares? Since your growing dividends are your top priority (over capital appreciation) and preferred shares are always guaranteed regular payouts, as opposed to common shares. I’m guessing that majority of your portfolio are blue-chip firms with preferred shares?

    BTW, this is @DavidApol on twitter.

    1. Miranda Marquit

      Hi David,

      This was written by a guest, so I can’t speak to his experience. I, personally, do not have a lot of preferred shares, even with the guaranteed regular payouts. My process is a little simpler, cheaper, and boring. I started out with a dividend paying ETF that I could buy shares of for a little bit, using dollar cost averaging. Now that I am seeing some solid returns, I am starting to branch out into individual dividend stocks (dividend aristocrats) with DRIPs. For some beginning investors, preferred shares are a little too expensive, and trying to pick them can be a daunting task. You do what works for you, I think. For me, the ETF and the dividend aristocrats do the job. Not incredibly sexy, but solid enough.

  2. John Petersen

    I espacially agree with this rule:

    “Keep an eye on the dividends, not the stocks prices”. Too many income oriented investors focus on the price of the stock, instead of looking at the dividends, especially if they are growing. It is much more easy to predict dividends (in dividend growth companies) than stock prices.

Leave a Comment

Your email address will not be published.

Scroll to Top