Our Philosophy
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We are an investment advisory. Twenty-five years in the futures markets has helped shape our view of investing. We think you should treat your investment account like a small business; you need positive cash flow to survive. It should produce a reliably increasing passive income stream and ultimately result in financial freedom.
Dividend Growth Investing When the dividend income stream is large enough to cover cost of living and a buffer for abnormal/unexpected expenses, you have achieved financial independence. The fact that you won’t have to sell the stocks in your account is one of the most attractive aspects of dividend growth investing; and it makes you less dependent on timing the market. |
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In many cases, passive investing is better suited to a regular brokerage account, while an actively managed account is better in a Roth IRA if you’re not retired, or close to it.
If your company matches funds in a 401(k), we think you should participate up to the matching funds limit. But we believe your primary investment account should give you access to your funds, without penalty, before you retire. |
The idea of collecting checks for the rest of your life and generating passive income can be very compelling. If this sounds like the type of investing strategy that appeals to you, you may want to learn more about dividends and dividend investing.
Dividend investing is based upon building a collection of diversified ETFs, MLPs, Closed End Funds and so-called "safe" blue chip stocks with large, regular dividend yields that generate money throughout the year. Dividend investors have the pleasure of seeing regular cash deposits appear in their brokerage account or bank account. Dividends are derived from a company's profits, so it is fair to assume that in most cases, dividends are generally a sign of financial health. From an investment strategy perspective, buying ETFs, MLPs, Closed End Funds, and established companies with a history of good dividends adds stability to a portfolio. If you're going to invest in dividends, look for increasing earnings, long-term expected earnings growth between 5% and 15%, strong cash flow, a low debt-to-equity ratio, and industrial strength. When you find a stock (or stocks) that meet these parameters, consider setting up a dividend reinvestment plan. If you're a dividend investor, you can't just pick the stocks with the highest dividends. That may seem counterintuitive, but there is often a reason why high-dividend stocks pay out so much. There could be problems with the underlying business, or the dividend payout ratio is much too high and threatens future growth. The firm may have a debt-to-equity ratio that makes investors believe the company can't survive in the long run. Take a few moments to discover some things to consider when finding the highest dividend stocks for your investment portfolio. The dividend tax sometimes confuses new investors because there are "qualified" dividends and "non-qualified" dividends. The most significant difference between the two is that non-qualified dividends are taxed at ordinary income rates, while qualified dividends receive more favorable tax treatment by being taxed at capital gains rates. Learn how the dividend tax works and the individual dividend tax rates that may apply to the money you earn from your stocks or other cash-generating assets.. If you have suffered a devastating blow to the value of your investments, 401(k), or stock portfolio, you may be able to use the combined power of dividends, dividend reinvestment, and dollar cost averaging to rebuild your assets Did you know that a portfolio full of dividend stocks is likely to fall less during a market crash than non-dividend paying stocks? |
We can offer you superior service for less than you’re paying now.
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Investment Philosopher, LLC
A Registered Investment Advisor
St. Petersburg, FL
A Registered Investment Advisor
St. Petersburg, FL
Contact us, let’s get the conversation started.
