Dividend Growth Investments for August 2, 2024

Good Morning,

Consistent with prior months, I will invest roughly $1,000 this month in several businesses. Most of those are companies I already have a position in. However, I am always on the lookout for new potential inclusions in my portfolio. 

I wanted to let you know that I just added to two existing positions. The companies are attractively priced today. I have initiated a position in both earlier this year, and I am currently working to increase my allocation to both. These companies have a below average allocation to my portfolio right now, but I am looking to increase that over time. This of course is subject to valuation and for as long as fundamentals do not prove me wrong. I tend to build positions slowly and over time, testing my hypothesis in the process, while also trying to avoid sinking money into a bottomless pit. 

I've been going through the list of companies I own, and trying to determine if I want to increase allocation to companies I own, or keep them unchanged. 

My decision is based on current valuation, as well as my review of recent earnings and dividends trends. If a company has stopped raising dividends, or raises them at a very slowing pace due to changes affecting earnings, I would likely not add to it. I also take into account the trade-off between current yield and future estimated dividend growth, along with stability of the business, dependability of the earnings stream, and how cyclical that business is. 

I have communicated before that I only plan on investing in companies where I can invest at least $500 - $1,000 into an idea. I also like to build my positions slowly and over time. This is a risk management process, which allows me to observe any changes when I invest. It also protects me from piling everything at one time. I like diversification across companies, industries and time. A one time dip in share prices may be helpful to initiate a position, but I do not want to have too much of a scattered portfolio of names in which I may never add to. This is basically the internal dialogue I have.


The companies I added to this morning include: