The principle behind dividend growth investing is about investing in long-term stocks which payout dividends that usually appreciate year over year. As the portfolio grows over time, so do the dividend incomes; and if set as a DRIP, the dividend income(s) go back towards the stock(s) as repurchases. This is a heavily fundamental-based investment form, and requires much due diligence as stocks ebb and flow with the markets. So long as the publicly traded companies remain solid business fundamentals, and solidifies their intent to distribute payouts to shareholders, dividend growth investing will eventually become a new source of income stream for you.
Apple (Stock ticker: AAPL) is a company predominantly known for their computer products. They own a large market share of consumer demand in computer products since they are in an industry that has a 50/50 split of hardcore PC users to MAC Users. This also includes Android vs iOS. Apple products, in my eyes, have always been known to be an "upper" class product. There is a lot of Apple diehards that will remain diehard users for the longterm future. Over the last decade, users have pre-ordered and stood in line (pre-Covid) for the latest iPhone release, enmasse. Not only are their financials tight, but they have also been paying increasing dividends over 7 years. The reason why I chose AAPL as a stock to look out for is due to their financials, market share, and their recent stock split. The stock split has made their stock cheaper, and has created an opportunity to once again invest in Apple stock again, whether you dollar cost average into it, or wait for a better pricing opportunity.
At Pfizer's (Stock ticker: PFE) current price, around $42.50, and with the recent news floating around of a covid vaccination pending release per the FDA's approval, PFE is a great stock to not only speculate into, but also buy into as a long-term investment. This is because they have been paying stable dividends since 1972. Their financials are great, with the exception of their balance sheet, which I presume is due to them not having many tangible assets but rather in the form of intangibles. On a technical level, their chart shows a high uptick due to recent positive news of a covid vaccination, but Pfizer should become a solid choice whether you dollar cost average into it, or wait for a better buying opportunity.
Get Started With Building Your Dividend Portfolio Today
M1Finance is offering you a fantastic platform to buy fractional shares and eventually build up your nest egg into a sizeable amount no matter what your income is. As you diligently pay yourself first in the form of investing into this platform you will soon start seeing higher returns in the form of dividend income. Sign up here to get started.
Webull is another platform I use to speculate on stocks. I like to buy low and sell high with a form of passive swing trading I like to use. I buy stocks at a low price, and increase my cash as I "pay myself first" from every paycheck that I receive from my regular day job. I stick to a disciplined strategy where I invest only a percentage of my overall cash into these speculative stocks and set price targets in advance so that it will sell whenever it reaches that price target. As my cash increases, the less my portfolio risk will be. I try to stay with stocks that have liquidity, brand exposure, and are at really good value buys. Sign up today to receive up to 4 or more stocks free when you get started.
Disclosure: This is not investment advice, nor am I a financial advisor.
0 Comments