Welcome to our weekly passive income portfolio (PIP) update—#8 in the series! Before we get to the update, I wanted to take a moment discuss my take on the age-old question: What’s the best investing strategy?
The investing community is as broad and diversified as it is passionate and vocal. You know what they say about opinions and it holds true for investors—everybody has one and everybody is more than happy to share theirs!
While this can be a positive, unfortunately, it often turns into a negative within the investing community. Rather than sharing ideas and information with both an open mind and an intent to enrich and help others, investors have a tendency to become close-minded, dismissive and highly negative.
This is painfully obvious when it comes to dividend growth investing. This investing approach is about as polarizing as it gets—you either love it or believe it was spawned by the devil himself. And those that hate it love to foist their own negative view of it on others.
For example, detractors love to assert that dividends don’t matter. I recently published an article addressing this passionate, yet unsubstantiated claim. In it, I address the logical fallacies and fundamental flaws disguised in their argument—demonstrating, once and for all, that dividends actually do matter. You’ve probably been exposed to this investing urban legend and I highly encourage you to read it.
However, while dividends do matter, does that mean dividend investing is the best investing strategy or approach?
The truth is that there are lots of ways to be successful in investing—meaning building your wealth and financial freedom. Like raising kids, there is no one “best” path that everyone must take, or they’re doomed to failure.
When we put our blinders on and view our way as the only way, we do ourselves and the broader investing community a great disservice.
Let’s look at just a few of the limitless possibilities investing offers:
The list goes on and on. There are so many variables that the possible combinations are infinite. And with an infinite system, there is no single solution. Rather, there is an infinite set of possibilities.
So, what do we do? How do we handle the challenge?
How do you tackle the investing maze? You find the best fit for you and learn, grow, and refine it based on your experience and continuing education.
Find your own groove and just be and do you!
Stop trying to find the silver bullet—it doesn’t exist in investing (or trading).
Furthermore, stop trying to convince others you that you have the silver bullet and that they’re idiots for using their approach to investing.
There are advantages and disadvantages with every investing approach. Let’s focus on sharing our knowledge and experience with others in the investing community in a positive and enriching way—rather than as a blunt-force object to beat others down into submission.
While I believe dividend growth investing is a great and highly-effective investing strategy to utilize, you will never hear me say it is the “best” or “only” way to invest.
It never ceases to amaze me when I hear growth investors demean dividend investing. The truth is that I employ a number of different strategies—including growth investing! I have growth portfolios, dividend growth portfolios, and trading accounts.
I find value in many different investing/trading styles—each works in different ways and performs best under different market conditions. Ultimately, while I enjoy trading and growth investing, I honestly prefer the passive-income approach of dividend growth investing for my long-run goals—but I use them all within my broader, multi-faceted, layered system.
To learn more about using a layered investing approach, checkout my article about How Much You Should be Investing–specifically, the section on “How Should You Invest Your Money.”
Rather than telling dividend folks why they’re wrong (negative), why not focus on sharing why and how growth investing works (positive)?
On this site, I’ve chosen to teach others how to be successful at dividend growth investing. That doesn’t mean they won’t be successful with growth investing. If you’re a growth investor, that’s fantastic—share your knowledge base with others and help them to be successful growth investors too.
However, don’t allow yourself to suffer from the selective perspective syndrome. Don’t focus exclusively on your particular investing strategy, while dismissing all other possibilities and clinging to the unfounded belief that everyone else is crazy or wrong (especially if you have no actual exposure to what they’re doing).
Instead, be open to other possibilities–whether you personally choose to use them in your own investing or not.
There is no one best investing strategy or approach. Rather, there are only infinite possibilities. Embrace the possibilities! Stay open-minded and be positive. Rejoice in your successes, as well as the successes of others—even if they take a different path to get there.
Just do you! Find what works for you and become the best at it—and then share that knowledge with others.
While we all share a common goal or destination (wealth and financial freedom), the investing map is chocked-full of different roads that will get us there. Each is unique and suited for different travelers. Pick yours, enjoy the journey, and never feel your road is the only way to get there—you’ll be surprised when you finally arrive at how many others got there too using their own roads!
Now let’s get our weekly passive-income portfolio update!
As we close out the week and our fourth month since portfolio inception, we currently have a portfolio value of $2,535.31—up from our starting value of $500 on March 13th.
In terms of market performance, we are up +0.3% since inception, up +1.0% over the past month, and up +1.4% over the past week.
We have earned $25.14 in dividends since inception, $10.55 over the past month, and $2.12 during the past week. We’re looking forward to the end of the month, when we can share the information on our dividends paid—including our updated trend.
Dividends continue to trend in the right direction with roughly 42% of our earned dividends coming in the past month (representing 25% of the portfolio’s lifespan).
Our yield-on-cost (YOC) is 7.5% and our current yield is 7.4%. Below is a look at our current dividend payout schedule and YOC trend.
We have made some sector allocation adjustments recently and I wanted to provide you with our current targets:
Finally, with the portfolio changes that have occurred over the past month, I wanted to provide an updated look at two of our fundamental portfolio allocations: asset type and market capitalization.
We hope you’ve enjoyed this week’s update on our public-view dividend growth portfolio.
You can always view our Wicked Capital dividend growth portfolio at https://m1.finance/1zUclN2JL
If you’re interested in starting an M1 Finance portfolio, please consider using our referral link https://mbsy.co/sZVS3 and we’ll both get some free cash!
That’s just one more reason to start your dividend growth investing today! It’s never too soon to start working towards your financial freedom!
Remember, when it comes to investing… there is no one way to do it or best investing strategy to use. You just have to do you!
That may be dividend growth investing, it may be growth investing, or it may be a combination of several different strategies. Keep an open mind, find what works for you, and embrace it!
If you’re interested in dividend growth investing—you’re in the right place! We focus exclusively on helping others be as successful as possible with this approach and we hope you’ll continue to return to our site to learn, grow, sharpen your skills, and find effective and positive ideas and motivation!
Enjoy your week and good investing!
Always remember, investing involves substantial risk of loss and is not suitable for everyone. The valuation of investments may fluctuate, and, as a result, you may lose substantial amounts of money. No one should make any investment decision without first consulting his or her own financial adviser and conducting his or her own research and due diligence.
You should not treat any opinion expressed on the Wicked Capital website as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion for entertainment purposes.
The opinions are based upon information we consider reliable, but neither Wicked Capital nor its affiliates, partners and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such.
Past performance is not indicative of future results. Wicked Capital does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this website.
As noted above, strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested.
Investments or strategies mentioned on this website may not be suitable for you. The material presented does not take into account your particular investment objectives, risk tolerance, financial situation, or needs and is not intended as recommendations appropriate for you. You must always make an independent decision regarding investments or strategies mentioned on this website. Before acting on information provided on this website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own licensed financial or investment adviser.