I started dividend growth investing with $100 on February 27, 2020, and last week, more specifically, Monday, August 10, 2020, reached an important milestone.
$10,000 in portfolio value.
As you can imagine, I am beyond ecstatic. And the best part is, I get to share this news with all of you. You have made me a more skilled investor and motivated me to stay the course.
A big thank you to each one of you. Keep those emails coming.
So what did I learn going from $100 to $10,000?
This tweet from James Clear, one of my favorite authors, perfectly captures what I learned:
I am an accountant by education and fairly decent with numbers. However, when it comes to investing in the stock market, one doesn’t need to be talented.
On Wall Street, the term “random walk” is an obscenity. It is an epithet coined by the academic world and hurled insultingly at the professional soothsayers. Taken to its logical extreme, it means that a blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.-Burton G. Malkiel
And it’s true actually. In 2010, a Russian circus monkey named Lusha picked an investment portfolio that outperformed by 94%.
So what do we have that our primate friends don’t have?
Logic, of course, and the ability to create a system and process.
For me, that process is simple. Identify solid dividend-paying companies and make weekly investments, no matter what.
In other words, a good habit, not talent is the reason I went from $100 to $10,000.
And if it can work for me, it can work for you.
Let’s do the numbers.
Weekly Update 8/10 – 8/14
Value: $10,315 | Gain: +$72 | Return: ▲0.71% | Dividends: $13
Last week I only made one purchase:
- Intel (INTC): $250
And received dividend income of $12.63 from:
- Accenture (ACN): $0.35
- ONEOK (OKE): $10.99
- Costco (COST): $0.22
- Apple (APPL): $0.46
- Deere & Co. (DE): $0.61
This week, I have my eyes on Cisco (CSCO). It has an excellent balance sheet, generates solid cash flow, and sells the infrastructure that runs the internet. The stock has taken a hit due to sales declined, as reported by the management last week, creating a massive opportunity for dividend growth investors to scoop it up at its current price.
Cisco currently has a dividend yield of 3.42%, pays a dividend of $1.44 annually, has grown its dividend by 12% per year for the past 5 years, and has paid uninterrupted dividends for the past 9 years.
This all-time portfolio takes into account the gains and dividends I have re-invested.
Projected Dividend Income
Annual: $446 | Monthly: $37