For my first blog post on Dividend Empire I figured I should provide a little background on myself, why I’m investing in dividend growth stocks and what I hope my readers will gain from this website. My name is Ken and I’m a 33 year old (as of 2015) Oncology Research Scientist in Southern California. I have been trading options in my spare time since 2003 with some success, but my returns have not justified the amount of time, energy and risk involved in options trading. For those reasons, I am always looking for a better place to put my money. One strategy that has always stood out is dividend growth investing – investing in companies that regularly raise their dividends. I love the idea of not only getting consistent paychecks from company stock, but ANNUAL PAY RAISES as well. I’ve done my homework over the past few years knowing that I would eventually make the transition.
Two recent events in my life have led me to finally embrace dividend growth investing: the birth of my first child and an article I read from DailyFinance.com titled “One Share of Stock Now Worth $9.8 Million.” Having a child has obviously changed my life (for the better) and it was the initial spark that eventually drove me to dividend growth investing. There are many things that I want for my children but the top priorities are a loving family, happiness and financial stability. The first two priorities have come easy so far but I have struggled with the task of ensuring financial stability. My wife and I make a decent living that covers everything our family needs, but we want so much more for our children when they grow older.
About a month ago (March, 2015) I stumbled upon the DailyFinance article that I mentioned above. In summary, the article points out that a $40 investment in one share of Coca-Cola back in 1919, with dividends reinvested, would be worth $9.8 million today. Now let’s be clear – I have no delusions of being able to pick a stock today that will give me that kind of return, let alone one that would give me that kind of return in my lifetime. But it occurred to me that it doesn’t have to happen in MY lifetime, but my children’s or grandchildren’s lifetime. Regular, decent-sized investments in dividend growth companies over my lifetime, with dividends reinvested, could turn into an empire for future generations. So that is my overall goal – to build a diversified dividend growth portfolio (the Dividend Empire) that will compound over many years and support my children, grandchildren and beyond.
So in summary, this portfolio is not for me. I don’t think I have the time horizon to solely live off of the dividend income generated in this portfolio – and I have other sources of retirement income. No, this portfolio is for my children, my grandchildren and their grandchildren. My goal is for this dividend portfolio to compound over generations and grow to be an empire for my family. My dream is for my descendants to one day write a post on this blog describing our journey from $0 in 2015 to a multi-million dollar portfolio supporting the entire family.
So what’s in it for you, the reader? Over the years I have thoroughly enjoyed reading other dividend growth investment blogs that track their portfolio over time (some of my favorites are listed under “Favorite Blogs” on the right). It is just plain fun to see what other’s have in their portfolio, how their portfolios are performing, what they think of different stocks and really just witnessing the power of compounding. Similarly, I will provide my current portfolio, which is updated in real-time, along with my current dividend growth stock watch list, goals & milestones and dividend growth investing resources. I will also post monthly / quarterly activity & performance updates, rationale for all of my investment choices, all of my transactions and stock analysis.
You can subscribe to my blog on the right side of this page so you don’t miss any posts. Also, feel free to shoot me an email at email@example.com if you have any questions, comments or suggestions.