Investing some money in a "hot tip' hoping to double your money in a week seems exciting - but this "lottery ticket approach" to wealth creation does not work for the vast majority of us. As time passes, I become more and more certain that I am perhaps the world's worst short-term stock picker. Fortunately, my approach to investing removes the requirement to have special stock-picking abilities and instead focuses on the ever-rising income stream that dividends provide. Eventually, these small streams of income meet together in a portfolio and create a gusher of income... This income stream has offered me the choice to opt out of the 9 to 5 grind for 6 years now.
I have no special stock-picking abilities, so I simply buy quality companies and collect dividends. With the warm weather here and sunny days upon us, I have so many things I want to do - but pouring over finanical statements is not one of them. Right now my attention is turned to trying out the new tent trailer our family recently purchased. I want to take it out for a few weekends before the whole Foster clan (there are now 7 of us in total), head out for our cross-Canada trip this summer. Since my mind is not really on the financial markets right now, I'll simply give you a quick update on what's been happening in my portfolio... with regards to dividends.
First off, one of my largest holdings, Johnson and Johnson, decided to raise their dividend by a little over 10%. As Yogi Berra once said, "This is deja vu all over again" as JNJ has been raising thier dividends for almost 40 straight years now. Investors' dividends are now over 300% of what they were at the turn of the milennium. As this company keeps ratcheting up profits by serving the ever-expanding health-care market, I imagine the dividends will keep growing over time. With 5 kids on the go, it's nice to know that at least some of the money we spend on Band-Aids will come back to us in the form of dividends.
Planning our cross-country trek, I've come to appreciate the vastness of our great country. These huge distances will be travelled this summer in our Toyota Sienna, which will burn up lots of gas (I'm still hoping the price of oil falls a bit before we head off). It's a little reassuring that at least a portion of this money I'll be spending on gas will be returned to me via the dividens from a few of my oil company stocks. Thankfully, Imperial Oil just raised their dividend by 10% and their parent and another of my holdings - ExxonMobil - also raise their dividend yet again (as they've been doing for over a quarter of a century).
If we stop to eat while travelling, it's quite possible that North America's largest food supplier - Sysco - shipped the food to the restaurant we chose. They also raised their dividend a few months back, so I am glad I own some shares. This company has actually been raising dividends as long as I've been alive as they started paying dividends the year I was born (1970) and have raised them every year since.
John D. Rockefeller once said, "The only thing that gives me pleasure is to see my dividends roll in." Although I hope to find a few more things in life that bring me enjoyment, it sure is nice getting regular pay raises in the form of rising dividends - regardless of what's happening the financial markets.
