Dear DTA,
My goal is to find success in the market.
-Martin S.
Hi, Martin. Thanks for reading.
I also want to thank you for your note.
We sincerely appreciate our readership, so much so that we try to respond to feedback just like yours.
Finding success in the stock market is something that, I believe, a lot of people are looking for.
The great news about it is, success is actually hiding in plain sight.
I’m going to share a long-term investment strategy with you that isn’t only proven to lead to success in the market, but it’s also a very obvious and straightforward strategy that is staring at all of us right in the face.
We just have to stare back at it, then take advantage of it.
That long-term investment strategy is dividend growth investing.
This strategy essentially involves buying and holding shares in world-class businesses that have longstanding track records of paying their shareholders growing dividends, funded by the growing profit these businesses are producing.
Fellow contributor Dave Van Knapp has laid out exactly what this strategy is, why it’s so amazing, and how to prosperously take advantage of it.
He’s done so through his Dividend Growth Investing Lessons.
It’s a very worthwhile read, Martin.
So let’s first address how this strategy is hiding in plain sight.
Many of the world’s biggest, most recognizable, and most successful companies are also high-quality dividend growth stocks.
I mean, these stocks are literally staring at us right in the face.
Just browse through the late, great David Fish’s Dividend Champions, Contenders, and Challengers list to get a gist.
David Fish spent years of his life tirelessly compiling invaluable data on more than 800 US-listed stocks that have paid rising dividends each year for at least the last five consecutive years.
And although his recent untimely passing means this list’s information is becoming slightly outdated, it still contains pertinent information on some of the best stocks and companies in the world.
You’ll see names that you’ll surely recognize from your everyday life.
Think Walt Disney Co. (DIS), PepsiCo, Inc. (PEP), and Microsoft Corp. (MSFT).
In fact, it’s highly likely that you, personally, are regularly using products from one of these companies.
Guess what?
So are billions of other people all over the world.
That means money. Greenbacks. Profit. Cha-ching!
And it also means dividends.
More specifically, it means growing dividends – because the very profits these dividends are funded from are growing over time.
That growth occurs as more people pay higher prices for more products.
This leads to the second point, which is finding success in the market.
You can probably imagine by now that investing in these blue-chip stocks can lead to success over the long run.
Well, that’s actually been quantified many times now.
In fact, Ned Davis Research has found that dividend growers and initiators performed better than an equal-weighted S&P 500 index over a 34-year period covering 1972-2016.
Since reinvested dividends account for the vast majority of the stock market’s total return over the long term, this shouldn’t be a shock.
Warren Buffett, the world’s most successful investor of all time, obviously got the message: he’s long been investing in high-quality dividend growth stocks via the public portfolio he oversees for Berkshire Hathaway Inc. (BRK.B).
I can tell you I also got the message.
I’ve used this strategy to build out my FIRE Fund.
That real-life and real-money portfolio generates the five-figure and growing passive dividend income I need to cover my basic expenses in life – and it rendered me financially free at 33 years old.
If you think financial freedom via dividend growth investing sounds like some far-fetched idea, it’s not: I’ve recounted exactly how I went from below broke to financially free, using this strategy, via my Early Retirement Blueprint.
That’s a road map almost anyone can follow and flexibly adapt to suit their own path to their early retirement dreams.
But I want you to know, Martin, you won’t have to walk that path alone.
We’ve got you covered all the way along.
For instance, I personally highlight a compelling long-term dividend growth stock investment idea every single Sunday.
That’s through the Undervalued Dividend Growth Stock of the Week series.
What this means is, we provide (for free) appealing long-term investment ideas for the dividend growth community.
Once you find yourself ready to put capital to work, you won’t be short on ideas.
Keep in mind, I don’t just talk the talk. I walk the walk. I’m investing (or already invested) in these same stocks I’m writing about.
Like I said, you won’t be walking that path alone.
But nobody can do it for you, Martin.
It’s ultimately up to you to take those steps, walk that path, and achieve what you’re aiming for.
There’s no better day than today to take that next step.
I wish you luck and success.
Jason Fieber
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Disclaimer: Jason Fieber is not a licensed financial advisor, tax professional, or stock broker. Please consult with a licensed investment professional before investing any of your money. If your money is not FDIC insured, it may decline in value. To protect the privacy of our readers, any names published in this article are under aliases. In addition, text may be edited, omitted or paraphrased for grammar or length.