The Fun Thing About Planting Dividend Trees

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If I had to make a short list of my favorite things about following a dividend growth investing strategy, one of the spots would be devoted to the fact that even if you hit a tight spot in your life and cannot continue to invest, the companies that you have acquired continue to chug out profits and dividends. In other words, your dividend tree continues to grow even if you stop watering it with fresh cash contributions.

I’ll give an example. Let’s say you find yourself in a situation like this: You have $5,500 to invest in a Roth IRA account this year, but next year, you expect money to be tighter (maybe you are getting a new roof, sending kids to college, etc.) and won’t be able to make any investments. Some people may think that if you have to take investing “pauses” at … Read the rest of this article!

Investing In A Late Stage Bull Market

There is an old Wall Street adage that says a bull market moves in three stages–in the early stage, only a few perceptive individuals or entities are able to pick out glimmers of prosperity in the future. These are the investors who go on to reap the biggest gains. Then, halfway through a bull market, investors are “starting to come around”, and those investors tend to reap moderate gains. And lastly, everyone becomes excited about investing, and those investors tend to reap the fewest gains as most businesses become priced at a point that all but guarantees mediocre returns.

Of course, investing slogans are all well and good, but the obvious follow-up inquiry is: How are they integrated into an actual lifetime wealth accumulation strategy? My answer is that, when you are participating in an investing environment where every investor seems more optimistic than not, you have to rededicate yourself … Read the rest of this article!

Secured Bonds Investing: A Warren Buffett Secret

William Wrigley, Jr., the founder of the eponymous gum company that bears his name, is one of the greatest students of efficiency and pragmatism that the business world has ever produced. Wrigley was a young man with the equivalent of $1,000 in his pocket who moved to Chicago to become a soap salesman, and the William Wrigley Soap Company also provided baking powder with the purchase as a gratuity.

Finding that the customers preferred the baking powder to the soap, Wrigley changed his business to the William Wrigley Baking Powder Company and repeated a new iteration of his formula, this time giving two packs of gum as a gratuity to the baking powder purchases. You can guess what happened next. The gum outsold the baking soda! At that point, presumably sick of changing the name, Wrigley began to sell of his gum under the “Wm. Wrigley Jr. Company” umbrella.

As Read the rest of this article!