Friday, March 1, 2013

Sowing the Seeds For Your Dividend Growth Portfolio

A dividend growth portfolio is a lot like an orchard. First you have to plant the seeds.

Then you have to be patient, and take good care of your saplings & young trees.
Eventually the mature trees will bear fruit for you for many years.

You'll still need to take care of them though, to keep them healthy and productive.

So get started today, and plant the seeds for your future orchard.
Here are 5 ideas which are reasonably valued (less than 20x) for your orchard.

Coca Cola tree, KO
Mcdonalds tree, MCD
Johnson & Johnson tree, JNJ
Scotiabank tree, BNS
Rogers tree, RCI.B

Happy investing

PS: one of my tweets made it on CNBC's Fast Money show!! I'm on live TV!!... well, my tweet is :P. start at  0:35


  1. Alex, how to know when a good entry point is?

    1. my strategy for determining how to enter or add to a position depends mainly on 3 things: 1. how big my existing position is, 2. what my target total amount is, 3. how much cash i have

      for example, if i already have 8k invested in JNJ, and have 4k cash, and my goal is 10-12k total invested in JNJ, i would wait aggressively for bigger pullbacks (8-10%) before adding another 2k.

      if i had 30k cash, nothing invested, and wanted a 10k position on KO, i would look to buy 2-3k immediately as long as valuations are reasonable, then look to add another 2-3k on a 5% correction in the stock.

      the idea is, address your highest risk first. if you have a lot of cash, and not many investments, you dont want to wait for 'perfect' entry point, since it might never happen. dip your toes in, and take it from there. if you are already mostly invested in the market, then you can afford to wait more aggressively