From my past posts, most readers can tell that I’m a dividend investor and collecting dividends is my core strategy. Some readers ask me, do I sell my shares. My reply to them is “Yes” In our investment, we must have the RIGHT reasons to buy & sell our shares.
Companies that I own shares will actually give me a passive income as their dividends. Are we able to spend those dividends and yet accumulate wealth over the time?
The answer is yes. Reason are simple, great companies will make good profits and reward shareholders with increasing dividends at the same time; which they will either grow their business or do share buyback. When they do a share buy, the share price will increase and this lead to capital gain. Share buyback is also another factor that I will consider while making my investment decision.
Usually, I favoured large cap companies more compare to the mid and small cap companies. Because, the profits they generate are usually consistent, low debt and the possibility for them to cut or omit their dividend is low. Some of them even increase their dividends on a yearly basis.
In my portfolio, I only invest in those solid growing dividend paying stocks and real estate investment trusts . And, this approach actually creates more wealth and also allows me to live the lifestyle I choose.