Good Morning Steemleo Tribe, I am @lalai and I am responding to a post by @leo.voter encouraging content creators to post on this Steem-Engine Tribe from it”s Frontend.
I would like to write about “dividend investing”.
When I was young my father was an investor, and I often heard him talking about how great the dividend was for this company or that company. It seemed he was quite happy to talk about dividends and who was paying the most. Luckily for me my brothers were not interested in investing, only fast cars, pretty girls and other sporty things. This meant I had my father all to myself when he wanted to talk about his passion. It is very unusual in Asian culture to teach or discus business with your daughter, but Asians are also family oriented, so if only the daughter was interested, then the daughter it was....but it was a bit of a secret, so my brothers could save face. In Asian culture saving face and protecting the family name is of paramount importance.
It was from him that I learned the two types of dividend investors;
People who invest mostly in stocks which pay a quarterly dividend or share of company earns for the quarter to owners of the stock are known as “dividend investors”. Also there are dividend investors who only invest into companies with track record of increasing their dividend rate every year. These investors are known as “dividend growth investors”.
My father was a “dividend growth investor”. He was very passionate about a group of stocks he called the “Kings” or sometimes the “Royals” as he felt these were much better then any other dividend paying stocks. The more common name for this group of dividend paying stocks is the “Dividend Aristocrats”. The “Dividend Aristocrats” is a group of dividend paying stocks that have increased their dividend payouts for 25 consecutive years or more.
The group includes companies that fit into all eleven sectors within the S&P 500 index. This is great for diversification of your portfolio, so single sector trouble doesn’t sink your “portfolio ship” as my father loved to say. So I would never forget the importance of diversification.
My father was never happier then when he was going over the statistics of this group. A recent performance references reveals the following:
The Dividend Aristocrat portfolio long term track record shows that over the past ten years on an average annual basis, the Dividend Aristocrat portfolio has returned approximately 1.6% more annually than the S&P 500 index with less risk.
Source
If you are interested in learning more about this group of dividend paying stock investments, you should read the references below.
Sincerely,
@lalai
References
http://moneyinvestexpert.com/dividend-aristocrats/dividend-aristocrats-2014
Dividend Aristocrats List for 2018;
https://www.dividendgrowthinvestor.com/p/dividend-aristocrats.html)