Dividend Growth Investor
@dividendgrowth.bsky.social
1.6K followers 35 following 680 posts
I write about Dividend Growth Investing www.dividendgrowthinvestor.com
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dividendgrowth.bsky.social
I often think about Warren Buffett's coin flipping example
dividendgrowth.bsky.social
I never know what my best stock will be in advance

The end results often surprise me

Which is why I try to allocate equal $ amounts at start as possible, into the ones that fit my criteria

Then let them concentrate on their own and just hold
dividendgrowth.bsky.social
My goal as an investor is to reach my goals and objectives, not keep up with the Dow Joneses

My goal is to generate enough in dividend income that grows at or above rate of inflation to pay expenses in retirement

I sleep well at night
dividendgrowth.bsky.social
This is your reminder to monitor your accounts regularly

Source: NYT archive.is/QdYCD
dividendgrowth.bsky.social
I personally love getting paid rising dividends when owning stock. That could be throughly directly selected stocks or directly selected funds.

That way I can ignore the stock price fluctuations, and stay invested.

I can never run out of money in retirement if I only spend dividends
dividendgrowth.bsky.social
You do need to stay invested, however you never know if you're about to experience a long cyclical bull market or a long bear market

This is of course a problem if you plan to sell stock in retirement

Sequencing risk can destroy nest egg and you run out of money (not the die with zero you planned)
dividendgrowth.bsky.social
However, during long bear market stretches, dividends tend to account for 100% of total returns

1929-1954
1966-1982
2000-2012

The nature of capital gains is that their sequence is unpredictable in the short run
dividendgrowth.bsky.social
Dividends have accounted for 33%-40% of average annual returns on US Stocks historically speaking

This is the beauty of averages

During long bull markets, dividends are outshined by capital gains

1920s
1950s & 60s
1980s & 90s
2010s & 20s

Investors see dividends as irrelevant during those periods
dividendgrowth.bsky.social
"Since initiating its focus on an annually growing dividend in 1973 to drive long-term value for shareholders $RPM has grown from $25 million in annual sales to more than $7.4 billion while delivering $3.8 billion in after tax capital through its cash dividend program

www.rpminc.com/dividend/cur...
Current Dividend | RPM International Inc.
RPM’s dividend growth, coupled with an appreciating stock price, yields a total return that makes the company attractive to institutional and individual investors.
www.rpminc.com
dividendgrowth.bsky.social
Dividend Growth Drives Total Return

"RPM’s dividend growth coupled with an appreciating stock price yield a total return that makes the company attractive to both institutional and individual investors..."
dividendgrowth.bsky.social
RPM International $RPM increased quarterly dividends by 5.90% to $0.54/share

This is the 52nd consecutive annual dividend increase for this dividend king
dividendgrowth.bsky.social
Finance departments of Fortune 500 companies spend a ton of time budgeting, tracking and reporting on income and expenses

Your favorite influencers tell you to just earn more money

These Fortune 500 companies obviously need to hire some finfluencers...
dividendgrowth.bsky.social
Mutual funds in the US started in 1920s

Many investors basically bought blue chips for their dividends, kept share certificates in a deposit box, and rarely traded

I think that's a good way to invest to build wealth
dividendgrowth.bsky.social
Once I buy a company, the goal is to get rising dividends annually, fueled by growth in earnings per share. This would lead to increase in intrinsic value over time as well.

This is Dividend Growth Investing 101
dividendgrowth.bsky.social
I am a Dividend Growth Investor

I focus on companies that have raised dividends for a long period of time

Once I identify such company, I review fundamentals and valuation, before deciding if I should buy it or wait for another price. Or just pass on it altogether.