8 Principles of Successful Investing
Dividend Geek uses the following investment principles used by the world’s greatest investors. We have taken these successful long-term investment principles and structured them into a safe, simple, and powerful plan that will enable you to achieve financial freedom!
1. Dividend Growth – You purchase only the strongest high-quality companies that have a history of consecutive dividend increases (5 year minimum, prefer 10-25 years), and raise there dividend payment an average of 10% every year this adds a turbo-charging effect to compound your portfolio’s income and principle even higher and faster.
2. Reinvest / Compounding – It Works! Mathematically sound and exponentially powerful! We reinvest all dividends back into more shares of stock so you utilize the power of compound growth. The earlier you start this better.
3. Invest for Income not Capital Gains – Prevents trying to time the market, a futile, self-defeating loser’s game that under performs.
4. Value Investing – We purchase stock when it is at or below fair value. This is what Benjamin Graham the Father of Value Investing called a ‘margin of safety’ Buying at good values improves your long-term portfolio return and gives you a higher initial dividend yield.
5. Diversification – Minimizes risk, stabilizes your portfolio through business cycles, and lowers investor’s emotional swings.
6. Inflation Protection – Dividend growth stocks provide you with inflation protection as they raise their dividend by 10% each year once you start taking your dividend income to live on.
7. Minimize Taxes – Use a tax sheltered Roth IRA. A self-directed retirement account where you pay no taxes while your investment grows or when you withdraw it! This is the best gig in town – if you don’t have one yet you are missing out on the investing opportunity of your life!
8. Dollar Cost Averaging – Takes advantage of market volatility, recessions, and crisis as you automatically buy more shares at lower prices and fewer shares at higher prices with every stock purchase and reinvested dividend.