I take a long term approach to dividend investing. So naturally I look for companies with consistent dividend payments and long track records of dividend growth. I want my dividends to continue to grow even when I’m no longer adding money to the stocks. Essentially, my yearly dividend growth just needs to beat inflation. I also take a long term holding approach to my dividend stocks. The market is constantly changing and I feel too much buying and selling can actually hurt you in the long run. There’s of course situations when you should sell a long term holding but, I’m trying to do very little selling. My main focus is buying companies that I understand and that I personally believe in and at the right price. When I do think that I’m finally ready to retire early I don’t ever want to have to go back to working so I want to make sure I’m 100% ready when the time does come. Here’s what my dividend portfolio looks like right now. I’ll try to keep it updated monthly.
I’m currently up $1,703.30 (6.95%) YTD so for my first year investing I’ll take it. Also, I’ve made $200.44 from dividends in 2016. My 2016 goal for annual dividends is $1,200 and I’m right on track. I’ve been adding $440 to my dividend portfolio bi-weekly. My goal is to stick right around 4% average yield and I’m currently at 4.15%. In regards to average yield I couldn’t ask for anything more. I would like to stay above 4% but, I don’t ever want to be below 3.5%.
I think my portfolio is still pretty unbalanced right now and that’s something I’m starting to work on. I know that I’m going to have to sacrifice yield to balance my portfolio out and that’s fine. I plan on adding to Procter & Gamble, 3M, Northwest Natural and Cincinnati Financial when the prices are a little more to my liking. There’s also a few others I’m waiting to buy. The goal for 2016 is to have at least 30 stocks with a decent holding in each. This alone will balance my portfolio out a bit more. I’m constantly researching companies to find new stocks that will fit into my portfolio.
I’m currently reinvesting all my dividends. To me, this is just extra money that will start working for me. The $440 I add bi-weekly doesn’t get me very far so every little bit helps. I’m excited to see where I’m at come the end of 2016!