The Transformative Moment of My Investing Life

investkey

Today, I wanted to share with you a moment in my life that “changed everything” regarding how I view investing. For those of you who follow my writings about dividend stocks, it might make sense to give you some context on “where I’m coming from” with my articles.

The summer after I completed my freshman year of college at Washington & Lee, I went to stay with one of my friends for a couple days to hang out before I had to start working (that summer, I was a teaching assistant for a program that taught Reading and Math to students from the inner city of St. Louis, and because it was only a six-week program, I was able to enjoy a meaningful summer break and visit friends).

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Should I Buy Blue-Chip Stocks Right Now?

moneypile

I received this question recently from one of my readers:

“hi tim, i love your articles. i have a question for you. With the dow at >15,000 how aggressively would you buy exxon, pg, jnj etc. would you buy 100 shares then wait for a pull back? Thanks, manoj”

Hi Manoj. When we make investments, one of the best weapons we have in our arsenal is the ability to make each investment one at a time. The fact that the Dow Jones is trading above 15,000 (or whatever figure might be dominating the headlines) says little about the valuation specifics of each company. For instance, Aflac typically traded at 250-400% of book value, and 15-25x earnings, before the financial crisis hit. Nowadays, the company trades at 100-170% of book value and only trades at 7-9x earnings, despite the fact that Aflac’s portfolio is now of higher quality than it was before The Great Recession hit.

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Royal Dutch Shell: The Perfect Stock For Your Roth IRA

shelloil

Tucking away high dividend-paying oil stocks in a tax shelter like a Roth IRA is one of the most underrated ways that an investor can accelerate the journey of turning an income stream into an income gusher. Companies like BP, Conoco, and Royal Dutch Shell that give investors a 4-5% starting dividend yield that typically grow over time can be a surprisingly effective way to build up your nest egg.

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