The DOW just doesn’t want to go down

The best part about investing is the market always goes up.

Wait … that doesn’t sound right. That’s not right, right?

Of course it isn’t, but you wouldn’t know it by the way things have been going here recently. Have you seen what the DOW is doing? Monday marked its ninth record high … in a row. It’s small .12% increase was its 10th straight gain in as many trading days.

Who knows? It might never go down again. Wouldn’t that be nice?

In all seriousness, nothing about the stock market is a sure thing. The DOW, at some point, will fall 10 days in a row. Maybe not this month, maybe not this year, but it will happen. For dividend-growth investors like myself, though, the 10 straight gains or potential 10 straight losses mean next to nothing. The gains are nice – watching your money grow never gets old – but the losses would inevitably have the inverse impact.

While the market itself is a roller coaster ride to say the least, there is a way to experience predictable gains. Know where I’m going with this? Yeah, I’m talking about investing in dividend stocks. Some of the best companies raise their dividend each and every year … some have been doing it for more than 50 years. The struggling ones can cut or even get rid of their dividend at any time, but, in my experience, that doesn’t happen all that often. Of the 130-plus companies in my portfolio, none have cut their dividend as long as I’ve owned them.

When companies raise their dividend, you get the gains without lifting a finger. It’s pretty awesome. When they don’t, well, there is still a way to boost your dividend income … buy more shares. It’s that simple. It’s certainly the closest thing to a sure thing I’ve been able to find since starting my march toward $1,000,000. It’s the reason I have the strategy I do.

Maximizing gains and minimizing losses, the keys to investing, right? Well, investing in high-quality companies that pay dividends is a great way to do both.

OK, I digress. The DOW has been on fire lately, though.

OK, seriously, I digress.

Dividends

I was paid a dividend Saturday and earned another Monday.

PNC Financial Services: PNC paid me $0.75 over the weekend. It was my first time getting a dividend from the company since I opened a position back in May.

Universal Holding: Monday’s $0.54 dividend payment was another first for me. I bought a share of UVV for $71.95, also in May.

The two increased my August dividend total by $1.29, up to $16.07. I’ve been paid $176.25 so far this year, which I’m happy with. It’s $176.25 more than I earned in dividend income last year.

  • Maimon Mons

    If you’re not re-investing the dividends, you’re not getting the most beneficial effects of the money. If you are re-investing the dividends you might as well have picked stocks that go higher and don’t give dividends.

    Why not just choose a Total Stock Market index fund with a low expense ratio and automatically re-invest dividends? That will give you the most bang for the buck. It will diversify you (reducing risk) and allow you to be more hands-off with your investing. After all, you’re never going to be able to pick stocks as well as the people that do it 24/7 and even they can’t (on average) beat the index funds once their expenses are taken into account.

    • Steady Saver

      I have a system and, at least so far, it works for me. I kind of made my own ETF, only it’s totally free and pays out dividends super consistently.