Thursday, April 10, 2008
Harvest the Fruit
Dividend investing is similar to planting a mango tree. Things start very slowly at first. It appears as if all your efforts are in vain, but ever so surely the process begins to produce fruit (dividends). In about 8-10 years most good dividend companies' yield on cost (YOC) reaches a level that equals a money market account, and continues to grow from there.
Just as picking fruit from a mango tree does not harm it, living off dividends does not damage the investment's ability to produce future results. A mango tree's life will easily span an entire generation. Similarly, well-chosen dividend investments will not only provide income in retirement, but can be passed to your children who can continue to reap the benefits.
If you want to enjoy tomorrows dividend fruits, you will need to plant and nurture the tree today.
Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.
- Dividend Stocks vs. a Safe Distribution Rate
- Best Stocks for 2011
- The 2011 Dividend Aristocrats
- 13 Dividend Stocks With A Good Yield/Growth Mix
- 11 Higher-Quality, High-Yield Dividend Stocks
Popular Posts - Last 7 days
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
After each quarter-end, I review my asset allocation and year-to-date total returns by category. The attached PDF contains my actual asset a...
One of the many reasons I like dividend stocks is because they provide continuous feedback. As time passes, dividend investors see their inc...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Investing in dividend growth stocks is a long-term proposition. One of the beauties of following a dividend growth strategy is that you don&...
Linked here is a detailed quantitative analysis of Illinois Tool Works Inc. (ITW). Below are some highlights from the above linked analysis...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
Each Sunday I highlight any notable articles that I came across over the past week, along with any Carnivals I participated in. For those re...
Linked here is a detailed quantitative analysis of Nike, Inc. (NKE). Below are some highlights from the above linked analysis: Company De...
Investing in dividend growth stocks is a long-term proposition. One of the beauties of following a dividend growth strategy is that you d...