Recent Investments for January 3rd, 2024
I wanted to let you know that I added to one of my existing positions. I have been building out my position slowly, after initiating it late last year.
The company is a dividend champion with a 32-year track record of annual dividend increases. It has had a relatively consistent annualized rate of dividend growth over the past five years as well that exceeds 7%.
The stock sells for 20 times forward earnings and yields 3.25%. I would welcome declines in the share price as I keep building out this position. That being said, I like the opportunities for earnings and dividend growth over time.
I will likely keep adding to existing positions over the course of this month. It looks like equity prices are going down for a change, in stark contrast with last month. As long-term patient accumulator of future income, I welcome equity declines, because that means I can buy more income for less money. I also believe in investing regularly, rather than sitting in cash, waiting for a crash.
I would argue that consistent investing over a decently long period of time in dividend growth companies acquired at good prices would really take advantage of the power of compounding. At least, that's been my experience so far.