Drive to 5 Update: April 2014

Keep Calm

Yes, this is when I discuss my recent purchases and changes to my Drive to 5.  I’m working (slowly) to my 5 for the year.  The impetus for my Drive originally came from Jason at Dividend Mantra.  Just like anything, it took me a few months to understand his philosophy on dividend growth stocks.  Originally, I assumed dividend growth stocks were a combination of growth and dividend stocks.  As I learned, dividend growth stocks are stocks which reliably grow their dividends.

As I have learned, pay raises are not guaranteed.  Even though growing dividends are not guaranteed, a company that is growing its dividends generally tries to continue to grow the dividends.  Stopping the growing dividends and/or reducing the dividends generally signals a potential weakness in the underlying business.

Since I last wrote, I have added a few shares of Intel (INTC) and SeaDrill (SDRL).  In addition, a few of my positions have increased their dividends (YES! dividend growth investing is actually working for me).  Specifically, KMI and O increased their dividends.

I am now earning $129.85 per year in forward dividends, or an increase of 57% from the start of the year.  I am still $370.85 away from my goal however.

In order to help push along my dividends for the year, to try to hit my 5, I am working more in the field (at my day job) in a position that pays a ‘hazard’ pay of $5/hr.  I realize this isn’t much, but it’s something.  I plan to use all of that money as ‘bonus’ investments.

Disclosure: Long INTC, SDRL, KMI, O

2 Thoughts.

  1. Happy to hear you join the ranks of dividend growth investing. It truly is an awesome power when you have time, growing dividends, reinvestment and compounding on your side. You will see that from pennies dollars will flow. It just takes time. I would suggest you start a dividend growth portfolio with several dividend aristocrats and focus more on growth rather than current dividend yield. That’s how I started my portfolio. Great job… keep it up!

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