The market is extraordinarily expensive right now. One metric I like to look at is the Shiller P/E or CAPE ratio. This number represents the price-to-earnings ratio based on the average inflation-adjusted earnings over the past ten years. Meaning, it removes fluctuations in earnings caused by business cycles. As it stands, the Shiller P/E is … [Read more...]
Target Matches Amazon
One of the critiques of dividends is investors miss out on massive growth offered by tech. This is not always the case! Furthermore, for every surging tech stock, there are many more that decline or even disappear. Dividend investing focuses on companies with strong cash flow, healthy leverage, and growing (real) profits. As … [Read more...]
Stick to the Strategy
Sometimes we second guess ourselves. When things get tough, we run for the hills! Due to all the inflation concerns, possible legislation, Amazon, and others I sold my CVS stock in the mid-70s. I thought to myself I can avoid all these hazards AND increase my income. After selling I reinvested the money into a preferred stock ETF. This allowed … [Read more...]
Sprinting to the Finish Line
It’s been almost two months since my last posting, so a lot has happened. According to my calculations, the dividend portfolio is approximately 12-18 months away from meeting minimum income expectations. Essentially in 2022/2023 I’ll have achieved financial freedom and will no longer “need” to work. This does, however, carry some assumptions. … [Read more...]
Recent Buy: Alibaba
In the 2020s it is likely China will emerge as the world’s largest economy. There are close to 1.4 billion people in China and the country has been growing at alarming rates. GDP growth rate averages around 6-8%; more than 3x that of the U.S. In addition, the country has a burgeoning middle class and a government intent on doing … [Read more...]
Recent Buy: Royal Bank of Canada
In November I discussed how I made minor adjustments to my portfolio given current circumstances. I ended up selling my local bank, First Source (SRCE), and bought into Royal Bank of Canada (RY). Both companies are in the same industry, banking, and carry a dividend yield over 3%. However, RY is the largest bank in Canada by … [Read more...]