What You Get When Subscribing
Create your own safe, growing income stream and get rich very slowly
Each monthly newsletter will have a list of the current stocks that make up the model dividend growth portfolio, along with any changes that are planned for this portfolio. The model portfolio follows the philosophy outlined elsewhere. It contains only companies that have the highest probability of increasing their dividends at 2 ½ to 3 times the current average rate of inflation.
In addition, a company needs to have certain financial metrics and other signs of financial health that generally indicate low risk and a high degree of stability. Also, a company needs to exhibit a historical willingness to incease payouts in the form of dividends.
Only the companies that best meet these criteria are placed into the model portfolio. Again, the portfolio is based on a selection of just those companies where the confidence in future dividend growth is the highest.
A competing goal of the portfolio is the diversification of risks across sectors and geographies. This requires the inclusion of companies from as many different economic sectors and areas as possible, while holding to the goal of high dividend growth.
Portfolio Performance Data
The portfolio listings will also give some basic performance data, concentrating on yearly dividend growth data for each of the companies. This data will not change very much from month to month.
At times, there will be dividend growth news that relates to one of the portfolio companies, and this news will be evaluated and discussed in this commentary. Financial topics that relate directly to the payments of greater dividends will be included here. Also, developments that affect any portfolio holding will be discussed at length. There is no general market commentary in this section of the Newsletter.
Dividend Growth Philosophy
This section of each Newsletter will discuss some aspect of the author’s dividend growth approach to maximizing income growth from dividends, and doing so with low risk and high reliability. Topics are chosen from issues associated with finding and evaluating dividend payment histories, the meaning of various dividend growth patterns, financial predictors of dividend growth, issues regarding portfolio management, non-financial predictors of dividend growth, how to compare one company to another, how to gauge the future dividend growth, dividend growth in foreign/global markets, sector representation and diversification, etc.
Once in awhile, very bad things happen to any portfolio, but even more so to a dividend growth portfolio. In the past, such a portfolio would have had various financial companies whose dividends (and earnings) completely disappeared. Sometimes whole companies seemed to disappear (remember AIG) along with their earnings. This will happen to this portfolio at times.
Along with these very bad things, there will be various threats to the goal of 8 %-10 % growth in income, as companies cut, stop, or lower their dividend payments. For all of these cases, there will be a plan on what to do with each of these unfortunate events or dividend growth threats.These plans generally have to do with the “Wait List” of companies that can replace those in the current portfolio when and if required.
If any member of the portfolio requires immediate action of any sort, all subscribers will receive an email with pertinent information about the action(s) being taken by the author. Subscribers can then take whatever action they deem appropriate.
All back issues of the Newsletter are archived and are available within each Newsletter.