Top 5 Factors for Choosing the Best Dividend Investments – Part 1

Top 5 Factors for Choosing the Best Dividend Investmentstop 5 dividend factors success

If you are investing in dividend stocks for income, you already know that there are 1000’s of companies to consider when investing your money. So how to you choose the best place to put your money? You’ve heard it a hundred times – to protect your portfolio, be “Diversified”. But what if you diversify using the wrong mix of companies? It’s not hard to build a really poorly performing portfolio – so how can you avoid those pitfalls and rise above?

Well, there’s no silver bullet, but here are a few things that I look for when adding a new position to the DDI Portfolio.

Here’s my Top Five Factors for Choosing the Best Dividend Investments… Continue reading “Top 5 Factors for Choosing the Best Dividend Investments – Part 1”

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Time for some Christmas Shopping

Daily Dividend Investor Update

To my loyal Daily Dividend Investor readers: Please note that I have migrated the site over to a managed server located at: www.dailydividendinvestor.com

I will continue to update this WordPress site with duplicate content for a few weeks,  but you may want to check in at my new hosted location for all the latest content. I am also using a better – easier to read theme that I hope you’ll enjoy. Thanks for reading and following along and don’t forget to LIKE our Facebook page!

Thanks!

Neil

Over the last few wchristmas holiday daily dividends investors income portfolio purchaseseeks I’ve done a bit of holiday shopping  for the Daily Dividend Investor portfolio. While I wouldn’t say that I scored any real bargains, I added a few new positions to the portfolio that should really help increase my income stream in 2012 and beyond.

As I add positions to the DDI portfolio I’m not afraid to put some money at risk, buying what may be a smaller, unproven or just less stable company in return for higher yield and the possibility of capital gains down the road.

I do like to try and keep things balanced – so for every riskier stock purchased I try to add what I often refer to as a “Steady Eddie” – those less interesting companies that just pay a consistent, albeit smaller, dividend quarter after quarter, year after year.

A quick overview of my recent purchases is shown below:

Continue reading “Time for some Christmas Shopping”

Things are Quiet like a mouse…

Daily Dividend Investor Update

To my loyal Daily Dividend Investor readers: Please note that I have migrated the site over to a managed server located at: www.dailydividendinvestor.com

I will continue to update this WordPress site with duplicate content for a few weeks,  but you may want to check in at my new hosted location for all the latest content. I am also using a better – easier to read theme that I hope you’ll enjoy. Thanks for reading and following along and don’t forget to LIKE our Facebook page!

Thanks!

Neil

Things are Quiet like a mouse…

Things around the Daily Dividend Investor have been a bit quiet lately. Perhaps you’ve noticed that I’ve started migrating the site over to a hosted WordPress solution.

Thanks to Erica Douglass over at : www.erica.biz (one of my favorite blogs) – she recently hooked me up with great a 50% off all hosting plans disount at Hostgator (www.hostgator.com)! I signed up for their “Baby Plan” which lets me host unlimited sites for 2 years for $100! I figured I couldn’t beat the price and I’d heard really great things about their service so I went for it.

I’ve spent the last week or so working on bringing up a few sites including Daily Dividend Investor and I have to say that it’s been easier than I ever expected. Although I still have a lot to learn – I haven’t even begun to implement 10% of the tools they provide for building, maintaining and growing your own web site. If you’re in the market to setup a site – you should definitely check them out. I promise it won´t take you long to get up to speed and get your content published.

Hereś a great coupon code if you decide to use them – it will take 25% off your order!

Host Gator Coupon Code: discount25fb

Other musings…

cash piles up daily dividend investor wsop cashflow income stream life wsop poker leadersWhile I’ve been focusing my time on the technical side of things, the DDI portfolio has been quietly churning away, building up cash, which as of today is just shy of $600, at $598 and change. I’ll be making my planned capital additions for November and December in the next few days which will bring the cash balance up closer to $3000 – priming the portfolio to add new positions when the time is right.

A positive market

Because the market has been moving upward over the last few days, I’m not in a big hurry to add to my positions. Severalstocks rise christmas santa claus rally bull market daily dividend investor passive income stream lifetime positions have recently announced dividend increases, so the portfolio continues to gain momentum even with no new asset purchases. As the European debt crisis continues to work towards a positive solution, it appears that the US Markets will likely continue this “melt-up” process we’ve seen over the last couple of weeks.

In the mean time as the broader U.S. Stock Market (Dow / Nasdaq / S&P 500)  rises, I’m spending some time looking for undervalued dividend stocks that I can deploy my cash into sooner rather than later. As bank savings and CD rates remain low and continue to trend lower, it’s becoming more and more difficult to find the quality dividend assets, but I’m still looking.

Focus!

bulls eye daily dividend investor focus results passive income stream life cash flowAs I refocus my efforts on finding those hidden dividend producing gems, I’ll be providing more daily updates of the stocks that have announced recent increases – I find it to be a great way to discover small to mid-size niche companies that have long track records of competent and conservative financial management.

Stay tuned for more….

Monthly Income Update: September 2011

Monthly Income Update: September 2011

monthly dividend cash flow reportWhen I look back over each month to calculate the total income, I am always amazed that so many “small” deposits (most less than $15) can add up so quickly.

September was no different, with 47 total deposits the DDI portfolio generated passive income of $567.67. That works out be about 1.5 total cash deposits per day, averaged over the entire month and the largest cash deposit since I started tracking the DDI portfolio on the DailyDividendInvestor.com blog!

The best news of all, is that the DDI portfolio generated $1503.59 for the 3rd quarter of 2011, bringing the average monthly income stream to over $500 per month, effectively exceeding my #1 short term goal!

Continue reading “Monthly Income Update: September 2011”

Bought: Investors Real Estate Trust (ticker: IRET)

investors real estate trust daily dividend investor passive income for life cash flow machineLooking for niche plays

In continuing to “top off” many of my existing positions I went ahead and added 75 shares of Investors Real Estate Trust (ticker: IRET) to the DDI portfolio today.

Investors Real Estate Trust is probably one REIT you’ve never heard of because it focuses on a very small niche, owning properties in Minnesota and North Dakota. Because of it’s geographic focus, it may be well situated to benefit from the recent economic boom that has been going on in North Dakota within the oil industry.

Risk / Reward

I tend to favor REITs when looking for companies to add to the DDI portfolio because of the fact that they own hard assets which makes it more difficult (but not impossible) for the book value of the company to fall to $ZERO. To be completely honest, owning this stock is all about yield which is currently right around the 7% mark. Adding these shares will increase the first month quarterly payout by $9.75.

As I’ve mentioned before, because most of my individual positions are less that $1000 in value and since the portfolio is on track to make $500/month (and growing) – I’m comfortable with the risk/reward scenario that investing in these shares offers.

Conservative Plays

conservative investments show long term profit passive cash flow daily dividend investor portfolio nowI’ll look to add on to one of my more conservative holdings for my next investment in an effort to balance the overall risk of the DDI portfolio. Overall the DDI portfolio continues to perform as expected, delivering over $500/month in income in both month 1 and month 3.

With the continued downward pressure on share prices I may begin to add additional outside funds so that I can capitalize on depressed share prices when the market offers them to me. Mostly this will be a function of how well or poorly my other income sources perform in the coming weeks and months. Ideally I would like to build the DDI portfolio up to $250k in base value before leaving it on auto-pilot to become a true unmanned cash flow machine!

man rebuilds stock porfolio daily dividend investor average joe makes free cash flow possible optionsDid you enjoy this post?

If so, you might want to check out some of my other recent buys including:

Gladstone Investment Corp

Century Link

Pfizer Pharmaceuticals
Or sign up for my email alerts each time the Daily Dividend Investor is updated!

While you were out…

Remind me not take any more vacations!

When I left last week the DOW was sitting comfortably at 12,500 and here we are today looking at 11,866 at thewhile you were out daily dividend investor finds new ways passive income today close.  634 points or 5% in less than a week’s time!

The bright side (there’s always a bright side) is that we can start looking for some bargains.

Perhaps I’ll be able to pick up those shares of Caterpillar (ticker: CAT) that I spoke of a month ago. While we wait for the US government to finalize a debt ceiling deal, I’m guessing this is not the end of all the selling in this market – let the bargain hunting begin!

While you were out…

While I was out the DDI portfolio generated another $124.85 in income which brings my cash balance to just over $1000.00. I should be able to pick up 2 or 3 good new positions or possibly add to my existing positions.

New near-term goals

Now that I’m comfortable with the diversification of the portfolio I’m going to focus less on adding new positions and have decided to implement the following two short term goals:

  • Begin “topping off” existing positions to reach even 100 share increments
  • Focus on adding to higher yielding positions (primarily positions with 5% or greater yield)
topping off passive income daily dividend investor portfolioBy “topping off” existing positions I’m  setting up the portfolio to begin implementing a covered-call option strategy to increase monthly returns by selling option contracts.
In addition, by focusing on the higher yielding stocks I’m hoping to pump up the DDI portfolio’s overall return in the shorter term. With talk of a double-dip and possible weakening economy I’m taking a risk that these higher yielding plays may be more susceptible to dividend reductions should their revenues be adversely affected.
My take is that the average investor is still seeking out above average yields by investing in equities – specifically those in the 5-7% range. Why 5-7%? Primarily, because investors typically search for yields above 3% to beat inflation, while trying to maintain some sense of “safety” by staying below a percieved danger zone above 7%.
Do you enjoy following along as I build the Daily Dividend Investor portfolio? Take a moment and subscribe to my email sign up daily dividend investor passive income email list daily portfolionotifications and you’ll get notified as I continue to work the portfolio. Don’t worry, I hate spam as much as you do and won’t sell or give away your info!
And remember, feel free to drop me a line anytime – I’d love to hear about your passive income journey!

Don’t try this at home!

Don’t try this at home!dont try at home daily dividend investor income results

Yesterday I got an email from one of my readers, asking if they should buy one of the stocks I talk about buying for the Daily Dividend Investor portfolio or even those that have had recent increases in their dividends.

To be clear, I do NOT recommend that any of my readers buy any of the stocks or other investments I might write about here at the Daily Dividend Investor blog.

So why am I writing this then? Good question, read on…

Continue reading “Don’t try this at home!”