Emotional Investor
05-19

SHOW ME THE MONEY 

 So in previous posts I've mentioned a few stocks that form the foundation of my portfolio. These are all dividend stocks that provide nice cash inflows, and they make up 50% of my portfolio. 

Some of them like $Main Street Capital(MAIN)$, $NextEra Energy Partners LP(NEP)$ , and $Trinity Capital Inc.(TRIN)$ These are often REITs or BDCs but I'm looking for a return of +15%. I call them my dividend engines because they are the engine room of my portfolio, providing 10% plus returns plus around 5% growth, to get to that magic 15%. There are some companies out there that provide over 20% returns, but their dividend growth is in the negatives and has been for years. So they are a trap. I avoid these.

The second category of dividend stocks I invest in I call dividend growth stocks. They mite have a modest dividend return, perhaps as low as 2%, but the growth rate of their dividend is crazy good. Pushing up the returns to that Magic 15%. Plus they also tend to appreciate better than the dividend engines so you get the paper gain over time. $Goldman Sachs(GS)$  Is one in this category, $Procter & Gamble(PG)$  is another... there's actually heaps to choose from that have twenty to even 50 years of paying and increasing dividends without a single glitch.

Is this a sexy strategy that you can brag about? No it is not. Highly unlikely they will jump 70% in a week for example. Just slow steady quarterly even monthly cash in your hands that you can reinvest and grow your portfolio. 

@TigerPicks @MillionaireTiger @SPACE ROCKET @Barcode @TigerClub @Tiger_chat @TigerObserver @Daily_Discussion  

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