For my February dividend reinvestment, I added shares of what I think is the best all-around dividend-growth ETF on the market. And I don’t make that statement lightly: I’ve studied dividend ETFs for nearly a decade, as they have grown from a niche product to a major genre of ETFs.
“I hope that these real-world results are inspirational for younger investors who can visualize the possibilities of large amounts of future income that are possible to generate from modest investments today.”
In addition, my Dividend Growth Portfolio (DGP) has now collected more in dividends than my original investment…
I just re-allocated roughly 10% of my dividend growth portfolio… and as a result, I’m boosting my income without adding any new money to my portfolio. Here’s how…
Perhaps the best of the dividend-growth oriented ETFs, now’s a good time to increase its position size in my Dividend Growth Portfolio.
It’s a very high-quality company with growing profits but a stagnant price (one of my favorite scenarios for buying stocks). In fact, after running the numbers, it now appears 18% undervalued.
The company falls just one point short of a perfect Quality Snapshot score… and with a current 3.3% yield, I think it’s a steal for a long-term dividend growth investor.
In doing so, I moved capital from a stock whose dividend characteristics made it unsuitable for my dividend-growth approach, and into two investments that I believe will generate more dividends and more portfolio growth in the future.
It’s an example of opportunistically investing in an excellent company at an attractive price.
Even though it flies in the face of a lot of conventional wisdom, I’ve decided to trim the hot stock given its meteoric price increase.
