First, thanks for visiting my site. I hope you have found it informative and useful.
Yes, my chosen stocks are admittedly high risk, as risk is naturally proportional to gain. In a previous posting about why I buy ETFs, I did write a paragraph addressing the risks of ETFs. Most of the ETFs I have are highly leveraged, so that alone increases the risk factor. I also have an entire post about risk tolerance, which also may give you some insight into my thinking about risk.
So why am I sticking my neck out and not opting for something safer, like dividend growth companies and maybe index funds? Because I’m in my 40s and just don’t have the time and/or capital to reach the same level of income via dividend growth stocks. The issue I have with the dividend growth strategy is that most dividend growth stocks have yields that just currently meet or barely exceed inflation (which has been at about 2-3% and most dividend growth stocks have yields in the 3-5% range). When you’re younger and time is on your side, then the dividend growth strategy is good, but it requires more time and/or capital to achieve.
As for how long I have been holding my dividend stocks, here are my current stocks and when I made my most recent purchase of them. Some shares have taken time to build up (for example, I made 6 purchases from 2009 to 2010 to own a total of 1500 shares of EXG),
As you stated it’s all about risk tolerance and that’s what personal finance is really all about. It’s personal. Portfolio allocation is all about one’s risk tolerance and comfort level with whatever they own for whatever the reason may be. Personally, your portfolio does not suit my needs but I can understand your need to “catch up” as you are starting later in the game. Thanks for sharing your portfolio holdings.
Hello ,
I’m a german so my english is not the best …. this is one of the first comments on a website outside from Germany ….. I am also a Dividend investor and wish you all the best … great blog … I come back …
Thanks a lot for the inspiration
Yours sincerelly
Uwe
Thank you for visiting and commenting MrAktie. It is nice knowing that my humble little blog is viewed outside the US and others find it inspiring. Dividend investing is great way to create passive income. Is the FIRE (Financial Independence Retire Early) idea gaining popularity in Germany?
I started following your blog close to 10 years ago, but hadn’t visited in a while. I was surprised to see your dividends significantly lower than they were several years ago. Have you been unwinding your positions? Were you DRIP investing?
Thanks for your comment! Has it been 10 years already? Wow. Time flies. Yes, my dividend income has been declining as I have been selling off stocks over the past several years. Why? Because I need the money. No, I’ve never done DRIP investing. I like to have the cash and the flexibility to invest where I want, or spend the cash as I need it. However, I can see the attraction of DRIP, as it’s just a simple “set it and forget it” approach and letting compounding work its magic.
Note: Please check your Inbox or Spam folder, as I am sending you a direct e-mail.
My current (as of 6/1/24) dividend investing portfolio:
Hi
nice portfolio , but dont you think its high risk as all your stocks are of high dividend yeilding stock s?
how long have you been holding this ?
regards
kumar
First, thanks for visiting my site. I hope you have found it informative and useful.
Yes, my chosen stocks are admittedly high risk, as risk is naturally proportional to gain. In a previous posting about why I buy ETFs, I did write a paragraph addressing the risks of ETFs. Most of the ETFs I have are highly leveraged, so that alone increases the risk factor. I also have an entire post about risk tolerance, which also may give you some insight into my thinking about risk.
So why am I sticking my neck out and not opting for something safer, like dividend growth companies and maybe index funds? Because I’m in my 40s and just don’t have the time and/or capital to reach the same level of income via dividend growth stocks. The issue I have with the dividend growth strategy is that most dividend growth stocks have yields that just currently meet or barely exceed inflation (which has been at about 2-3% and most dividend growth stocks have yields in the 3-5% range). When you’re younger and time is on your side, then the dividend growth strategy is good, but it requires more time and/or capital to achieve.
As for how long I have been holding my dividend stocks, here are my current stocks and when I made my most recent purchase of them. Some shares have taken time to build up (for example, I made 6 purchases from 2009 to 2010 to own a total of 1500 shares of EXG),
BGY 05-2010
CFP 10-2011
CIK 10-2008
DHY 06-2013
EXG 07-2010
?? 07-2014
NCV 11-2013
OIA 05-2013
DMF 08-2013
DSM 11-2013
HTR 05-2014
PFN 12-2014
HQL 08-2014
RSO 12-2014
VFL 12-2014
CTCM 01-2015
As you stated it’s all about risk tolerance and that’s what personal finance is really all about. It’s personal. Portfolio allocation is all about one’s risk tolerance and comfort level with whatever they own for whatever the reason may be. Personally, your portfolio does not suit my needs but I can understand your need to “catch up” as you are starting later in the game. Thanks for sharing your portfolio holdings.
Hello ,
I’m a german so my english is not the best …. this is one of the first comments on a website outside from Germany ….. I am also a Dividend investor and wish you all the best … great blog … I come back …
Thanks a lot for the inspiration
Yours sincerelly
Uwe
Thank you for visiting and commenting MrAktie. It is nice knowing that my humble little blog is viewed outside the US and others find it inspiring. Dividend investing is great way to create passive income. Is the FIRE (Financial Independence Retire Early) idea gaining popularity in Germany?
I started following your blog close to 10 years ago, but hadn’t visited in a while. I was surprised to see your dividends significantly lower than they were several years ago. Have you been unwinding your positions? Were you DRIP investing?
Thanks for your comment! Has it been 10 years already? Wow. Time flies. Yes, my dividend income has been declining as I have been selling off stocks over the past several years. Why? Because I need the money. No, I’ve never done DRIP investing. I like to have the cash and the flexibility to invest where I want, or spend the cash as I need it. However, I can see the attraction of DRIP, as it’s just a simple “set it and forget it” approach and letting compounding work its magic.
Note: Please check your Inbox or Spam folder, as I am sending you a direct e-mail.