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DISCLAIMER - I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice. These are my findings and can hopefully help you to make informed decisions on investing. Consult a Broker or Lawyer before making any investment. Some Great Dividend Stocks in 2024 If you are like me, you like to have some examples of what will work in today's stock market. There are many voices out there crying for our attention. Unfortunately, most are trying to sell you something. If a person is making a profit off of their advice, it is wise to double-check the recommendations. It may not be better than a mediocre return. Don’t get me wrong. Sometimes mediocre returns are great. I remember the first quarter of 2022 when the S&P 500 dropped like 30% in one quarter. Anything that made money then looked good. To offset these kinds of losses, be sure to mix your investments and always hold a large portion in bonds and CDs or ready cash. The main focus of my investments is in what is called Dividend Growth Stocks and ETFs. I have several articles in this category. What is DGI Investing? Dividend Growth Investing with ETFs One of the simpler methods to invest in the stock market is to just purchase full stock market ETFs such as ITOT, SPY, VTI, or SCHB. Investing with Stock Market ETFs I keep a large number of what are called Blue Chip Dividend Stocks in my Schwab Portfolio. They do not pay huge dividends like REITs and Closed-End Funds(CEF) and Business Development companies. (BDC) I have articles on each of these categories. Just click on the INVESTMENTS tab on top of the page if using a computer or click on the block with 3 lines on it to get to the Investments menu if using a smartphone. You can also access the menu at the bottom of every article under “All Investment Articles”. This week US News and World Reports gave a list of several good Dividend Growth Stocks. One of them is special to me. It is Tyson’s Food. I worked for over 20 years at Wright Brand Foods which was purchased by Tysons in 2012. I then worked for 9 more years as a computer consultant with Tysons. They have hundreds of meat plants all over America and from the article they appear to be selling at a low price based on earnings. I will have a few comments about Tysons later. Here is the list of stocks they recommended with the current dividend rate. HE - Hawaiian Electric Industries 3.7% D – Dominion Energy Inc 4.6% TD – Toronto Dominion Bank 4.8% AMGN – Amgen Inc. 3.4% AVB – AvalonBay Communications 3.9% NSA – National Storage Affiliates 5.1% O – Realty Income Corp. 4.9% FIS – Fidelity National Information Svcs 3.9% TSN – Tyson Foods Inc. 3.2% VZ – Verizon Communications 6.6% IBM – International Business Machines 5.1% Here is a capsule of what they said about Tyson Foods. Tyson Foods is a packaged foods firm focused on meat products. Meat wasn’t a great industry in 2022 due to soaring livestock prices. The war in Ukraine caused a surge in grain prices, making it more expensive to raise cattle and poultry. The meat cycle seems to be turning in Tyson’s favor and grain prices have plunged in recent months. Even with current difficulties, Tyson shares are selling for just 11 times earnings which seem to be a tasty entry point. I have not reviewed any of these 11 stocks, but already own over half of them. I will consider each of these and will consider adding Tyson Foods. What is great about Dividend Growth Stocks is that if they pay 5% in Dividends and the stock goes up in price by 6% in one year, your real return is like 11%. So do consider these and get some good passive income. PASSIVE INCOME Explained List of All Investment Articles List of All Minimalism Articles Internet Direct Laptops
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RESLIENCE There are a lot of ideas about what minimalism can do for us. Then you cut out the excess “stuff” you have more free time. You have less to keep up with, and your expenses are lowered. Today I want to discuss a word that all of us should really learn and strive to make part of our day-to-day mindset. While perseverance and determination are very important and closely interweaved, this attribute is one that we really need. If we can get this attribute into our daily action steps, believe me, it will allow us to have a more consistent life. I want to talk about the word: Resilience The dictionary defines resilience as: 1. the power or ability of a material to return to its original form, position, etc., after being bent, compressed, or stretched; elasticity. 2. the ability of a person to adjust to or recover readily from illness, adversity, major life changes, etc.; buoyancy. 3. the ability of a system or organization to respond to or recover readily from a crisis or disruptive process. If you watch NFL football, in the middle of the 2023 season I watched the Philadelphia Eagles perform some real resilience. Against the Kansas City Chiefs in Kansas City, they were down 17-6 at half-time. By playing excellent defense and holding Kansas City to 0 points in the second half, they were able to score twice and win that game. The following week against an equally hard opponent, they faced that same 17-6 halftime deficit. While they came out and scored quickly, this time Buffalo did the same. Over and over they fought until in overtime Philadelphia won that game. Their quarterback was pounded over and over, but he kept coming back. To me, this is an excellent example of resilience. Bounce back when things are NOT going your way. As a Christian, almost daily you will be stretched to your limit and face adversity. Can you quickly recover from hard times? We can when we have faith in God. When we ask God for faith, he has promised to give us our desires. Who in the bible was the ultimate example of resilience besides our Savior Jesus Christ? I think after Christ, the first person that comes to my mind is the apostle Paul. 2Co 6:4 But in all things approving ourselves as the ministers of God, in much patience, in afflictions, in necessities, in distresses, 2Co 6:5 In stripes, in imprisonments, in tumults, in labours, in watchings, in fastings; 2Co 6:6 By pureness, by knowledge, by longsuffering, by kindness, by the Holy Ghost, by love unfeigned, 2Co 6:7 By the word of truth, by the power of God, by the armour of righteousness on the right hand and on the left, Paul was a man who never gave up, no matter the circumstances. He knew that God was the one who helped and guided him every day of his life. Through Christ, Paul could do all things. Heb 11:6 But without faith it is impossible to please him: for he that cometh to God must believe that he is, and that he is a rewarder of them that diligently seek him. We are commanded in Romans to not be conformed to this world, but have a mindset geared towards doing the perfect will of God in our lives. Rom 12:2 And be not conformed to this world: but be ye transformed by the renewing of your mind, that ye may prove what is that good, and acceptable, and perfect, will of God. Rom 12:3 For I say, through the grace given unto me, to every man that is among you, not to think of himself more highly than he ought to think; but to think soberly, according as God hath dealt to every man the measure of faith. To have resilience, you will certainly need to have a lot of determination. All of these things work hand in hand to make you a person who is very productive in your life. By being determined, you keep on when others quit. When you have determination, little setbacks are just those. Failure is never failure until you quit getting back up and fighting another round. Paul told the church at Phillipi that he had no confidence in his flesh, but he looked to God with faith to help him have the resilience to keep on keeping on. Php 3:1 Finally, my brethren, rejoice in the Lord. To write the same things to you, to me indeed is not grievous, but for you it is safe. Php 3:2 Beware of dogs, beware of evil workers, beware of the concision. Php 3:3 For we are the circumcision, which worship God in the spirit, and rejoice in Christ Jesus, and have no confidence in the flesh. Php 3:4 Though I might also have confidence in the flesh. If any other man thinketh that he hath whereof he might trust in the flesh, I more: Php 3:5 Circumcised the eighth day, of the stock of Israel, of the tribe of Benjamin, an Hebrew of the Hebrews; as touching the law, a Pharisee; Php 3:6 Concerning zeal, persecuting the church; touching the righteousness which is in the law, blameless. Php 3:7 But what things were gain to me, those I counted loss for Christ. Php 3:8 Yea doubtless, and I count all things but loss for the excellency of the knowledge of Christ Jesus my Lord: for whom I have suffered the loss of all things, and do count them but dung, that I may win Christ, Php 3:9 And be found in him, not having mine own righteousness, which is of the law, but that which is through the faith of Christ, the righteousness which is of God by faith: Php 3:10 That I may know him, and the power of his resurrection, and the fellowship of his sufferings, being made conformable unto his death; And what goes with determination? Absolutely it is persistence. Day after day you fight again and again. Failures come and failures go, but you don’t give up. Having mule-like determination will allow you to overcome almost any resistance you come up against. Thomas Edison tried over 14,000 tests in trying to create the light bulb. When his assistant said after a few months, let’s give this up. It can’t be done. Edison was reported to have said, “No. We just now know over 10,000 ways that won’t work.” Robert Cavett, a great motivater, once said: “You don’t drown by falling into water, you only drown if you stay there. It’s all right to get down, but don’t get down on yourself.” All of us stumble, but resilience and determination make us keep on going when it is not going our way. In sales, I have heard most salesmen give up after being told “no” 3 times. But successful salesmen know that the ‘no’ is not personal, and you just have to keep on trying. One of the greatest salesmen I ever met told me that he has found that it takes 30 attempts to sell, so he keeps up a record of all the ‘nos’. When he gets to 25, he knows a ‘yes’ is coming. You build greater determination which makes you even more resilient. While we are not selling our faith to the lost, we are presenting the Lord in sharing the gospel and we need to know that we may have to witness a number of times before we make headway. If the roles were reversed, would you want that other person to give up on you if you said no a few times? Determination will help you to develop the resilience you need to be consistent and successful in your life. It all begins at the start of each day. We must let God through the Holy Spirit guide us, and that begins by reading our bible and being in tune with God’s leadership. List of All Investment Articles List of All Minimalism Articles Internet Direct Laptops
Market Cap Movers in 2023 DISCLAIMER - I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice. These are my findings and can hopefully help you to make informed decisions on investing. Consult a Broker or Lawyer before making any investment. I read an interesting article last week on Market Moving Trends. According to their research, 7 stocks in 2023 have been responsible for 73% of the Market Gains in 2023. I try to stay with tried and proven Dividend Growth Stocks that give at least a 4% dividend return and potential upside gains in price of around 5% or more. However, I could not ignore the fact that just 7 stocks had such movement in them in 2023. According to Market Moving Trends, those stocks moving the most in first 10 months of 2023 are the following: While these 7 may have had the most upside thus far in 2023, it does not mean it will continue. However, if any of us had been wise enough to buy a few shares of Microsoft in 1983 would have made us millionaires. Same could be said before Amazon or Apple took off the last few years. I don’t have thousands of dollars to invest in speculative adventures, but I did decide to start buying $5 on each of these 7 stocks weekly in my wife's Fidelity Roth IRA over the upcoming year. I don’t expect huge gains on them all, but if just 3 of the 7 move up substantially, it could mean a good return on the investment. Fidelity allows you to purchase by the dollar during open Stock Market Hours. You can do it similarly on Schwab with their Stock Slices program. So for the next year, these will be my low-percentage speculative money purchases. I have tried several ‘hot’ idea items over the years, and so far none have performed well. We will see if this is another wild goose chase. Never invest more than 5% of your investments in non-solid investments. I believe that DGI investing is where you will consistently do well. These are Dividend Growth Stocks which all pay a dividend and still have some upside to grow. We have discussed dividend stocks in two previous articles Dividend Aristocrats Dividend Kings These lists zero in on stocks that may or may not be ideal DGI investing instruments, but many will. A Dividend growth stock will not only provide you dividends, but the company will continue to grow and the stock will appreciate in value. So if a stock pays a 6% dividend and in a year grows 8%, and the stock price rises matching that 8% growth (no guarantee of this… it may go up 7% or 12% depending on market psychology and the overall stock market). But if it does go up in value 8% and the stock pays a 6% dividend, you received a 14% growth in that one year. So you are looking for high quality companies with an ability to continue to grow. With this and the compounding of interest and growth price (appreciation), this can really turn into a fine return. Since 2022, I have been putting over ½ of my investment money set aside for ETFs and Stocks into DGI investments. Review those two lists on Dividend Aristocrats and Dividend Kings. They are different lists, and if a company is in both lists, it should be carefully considered as a potential DGI investment. If you continue to buy stocks all through the year with consistent investments, you will gain the average cost on the price through the year. So consider all your investment options. REITs, BDCs, and Preferred Stocks should all be part of your investment portfolio. Growth Mutual funds are also good steady money in up markets. List of All Investment Articles List of All Minimalism Articles Internet Direct Laptops
FAILURE DUE TO LACK OF PLANNING DISCLAIMER - I am not a Financial Advisor and do not work for any Brokerage Firm. The opinions given are my own and are not to be used as professional advice. These are my findings and can hopefully help you to make informed decisions on investing. Consult a Broker or Lawyer before making any investment. When it comes to investing, there is no substitute for having a clear and concise plan. A plan followed by actionable steps leads to success. In life, we have so many reasons to delay our starting to invest. We may think that we simply do not have any extra money to invest. There are always unexpected expenses that will give you an excuse to wait until next week or next month. Thinking like this is a sure way to never get started. “He who fails to plan is planning to fail” according to Winston Churchill. Even a minimal plan with minor amounts of savings is a plan to get off to a good start. The number one regret I hear from investors is that they wish they had started investing sooner. I know that is true in my own life. I started investing in my 20’s but failed to be consistent year after year. And then life happened. We raised three kids, and it wasn’t until I was in my 50’s that I got a serious plan of action in place. Since then, I have consistently invested monthly. In his book Personal Finance, Matthew Collins states that “A plan without action is just a dream.” Action is required on your part. And your first action is to get started. Maybe just $10 a month, but start and be consistent. Once you see some returns, you will find a way to increase your investing amount. Investing is not all easy. Andrew Carnegie once said “Anything worth having in life is worth working for. “ So we must make up our minds to get started, and then come up with a reasonable Investment Plan. I can not over emphasize the importance of starting now while you are young. Last year I read the book “I Will Make You Rich” by Ramit Sethi. In his book, he gives an excellent example of two people, one who started at age 35 and the other who started at age 45. Smart Sally sets up an investment account with $200 a month and only invests for 10 years. Dumb Dan waits until he is 45, and he puts in $200 a month for 20 years. Who has the most money based on a conservative return of 8% at the age of 65? Smart Sally, having only 10 years of monthly investments has $181,469. Dumb Dan invests $200 a month for 20 years, but because he started late, his balance at age 65 is only $118,589. He invested twice as long, but is $60,000 less because he started late. Think the huge difference if the monthly amounts had been $500 monthly. Now starting late is better than never, but see my point. START NOW. Time is on your side when you invest when you are young. Time is not on your side after you pass the age of 50. Don’t let me hold you back if you are over 50. It is much, much better to get started now than to never start. In this Ramit Sethi book, he goes over dozens of excuses why people do not invest. Many have to do with the claim they don’t have the money, or that it is someone else’s fault. It is not someone else’s problem. Ramit Sethi lists several counter-cultural excuses: LOL! Invest? I can’t even save enough for a pizza. Maybe if baby boomers hadn’t ruined it for all of us. I have social anxiety so I can’t do that. Do you know who’s the real victim here? Me. I’m offended at you being offended. And at the stupidity of this entire victim culture. I refuse to play into the theatrics of how you can’t afford to save even $20 a month. We play the cards we’re dealt. I believe in focusing on what I can control. I love Ramit’s in-your-face approach. So many today blame someone else when the issue is really ourselves. It is your problem. As Dave Ramsey has said over and over, the main problem is the guy in the mirror. Knowing what to do is 20% of the equation, and doing it is 80%. Once you get started, it will be easier. I know. It was hard for me to get disciplined and consistent. We are creatures of habit. I will close this article with a little poem I read. Sow an act and you Reap a habit. Sow a habit and you Reap a character. Sow a Character and You reap a destiny. List of All Investment Articles List of All Minimalism Articles Internet Direct Laptops
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David ParhamChristian Minimalist and Investor. God guides and helps me everyday. Archives
May 2024
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