I am creating this blog to record my personal journey towards financial independence through dividend growth investing. My hope is to use this as a medium to record my progress towards my goal and gain inspiration through the vibrant community of dividend growth investors on the blogosphere.
I will be sharing updates on my dividend portfolio on this blog and also providing monthly updates on income received, as is the customary practice of several such blogs.
Before going ahead though, I would like to state that I am no expert in this field and what you will read on this blog should not be considered as financial advice. Please consider seeking the assistance of a licensed financial advisor before investing in the stock market.
Why Dividend Growth Investing?
There are several investing strategies out there. So it is important to state why I have chosen this specific strategy for investing. Here are some specific reasons:
- Truly passive strategy: This is a fairly important consideration. I am a working professional with a regular 9-5 job. Beyond that, I am also married and have a young kid. So my time (and mental bandwidth) is fairly limited. Simply put, it is impossible for me to track the stock market on a day-to-day basis. Hence, any strategy for investing needs to be passive in nature. I can spend time infrequently / up-front doing my research in the stocks I want to own, buy such stocks at a reasonable valuation and then continue to invest in them from that point on and let these businesses generate cash for me.
- Creates a second line of income: which is passive in nature. I can let my money work for me while I am asleep.
- “Buy-and-hold” by definition: My decade-long experience in the stock market has convinced me that a buy-and-hold strategy is more suitable to my style of investing. Dividend Growth Investing, at its heart, relies on this strategy as well. One simply needs to invest in high-quality businesses that return back cash its shareholders in the form of dividends. These dividends are re-invested back into the market in the same or other such high-quality businesses. Furthermore, these businesses consistently increase their dividends paid to their shareholders. Over the course of time, the compounding that ensues as a result of this, creates a snowball machine that generates steady cash flows.
- Focuses on high-quality companies: If done right, this strategy will lead the investor towards picking businesses that are stable, growing and reliable. This is extremely important to ensure that the generated cash flow is reliable in nature.
While the primary focus of this blog will be geared towards updates regarding my dividend portfolio and my approach to dividend growth investing, I also plan to write about topics related to retirement and personal finance.
Thank you for reading thus far. Please feel free to drop a comment to say “hi”. I would love to hear from you and hope to learn from you throughout the course of this journey.