• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

10 best practices for dividend investing

December 14, 2012 3 Comments

Share this:

  • Tweet
  • Email

At this point of time, in mid thirties and, having a stable job, I do not look for income from my shares. I rather re-invest the dividend I receive each quarter. I own almost 20 different stocks right now and more than 80% of those stocks are dividend paying.   Dividend Investing

If you are aiming for higher return from your investment, stock and dividend investing is probably in your list already. But stock investment inherit greater risk compared to other form of investment. You should have some clear strategy and game plan to secure higher return with lower risk. These are some of the best practices that I tend to learn and adapt over last few years.

Let’s see them, very briefly.

10 best practices for dividend investment

  1. Setting goals: working without a goal means nothing…you do not have anything to lose. All you do is survive. With goals, you will know the reasons for your investment and what you want to do with it when it matures. Eventually, you can decide the steps to do to make your dreams come true
  2. Have strategies that are achievable and sensible. People have written down their dreams and visions, it wouldn’t be surprising to write down your own in a document. Write down steps of how you will be investing your capital.
  3. Learn from mistakes: first I should mention that once the excitement of being an investor wears off, there comes a point when you will make mistakes-but first learn from the mistakes and experience of others before you can learn from your own
  4. Think beyond today or tomorrow: think about how your life will be in the next two to three decades. This is a motivation that will help a lot in deciding against impulse decisions that many people make when they are scared. This will also encourage you  to invest more
  5. Follow your strategies: it is one thing to have a strategy document and it is another thing to follow them to the last point. You can always increase their number, but they shouldn’t be too restrictive or too allowing as you will not achieve what you set out to achieve. A good example will be the judging of companies according to factors like current yield, dividend growth rate, operating margins, earnings growth etc.
  6. Learn: there is never an end to learning. Learning investing is a great way to go about your own path of investment, learn on valuation, compounding business developments corporations master limited partner shops etc. understand the risks you have to take when going a certain path. Always maximize the rewards and minimize the risks.
  7. Measure your own performance constantly: are you achieving your goals? Will you have an income stream at  the end of your investment? If your total returns will be affected, perhaps it is time you changed your tactics and went to something else
  8. Selecting stocks: when it comes to stock considerations, you must have a list of what your stocks should have for you to consider them. You should have a minimum standard of initial yield and an increase streak. You should remove from your list and standards any kind that does not meet your standards. This will make it very easy for you to select stocks
  9. Diversify your portfolio: decide how diversified it will be. It could be measured by the number of stocks or companies, the varieties of yields, the various growth rates and so forth. Decide the parameters of your diversification.
  10. Monitor your portfolio. You need to keep up with the important happenings in your stocks. Get constant reviews from experts and so forth.  This is an important exercise, although not something you should do everyday.

Readers, you have seen that having a good dividend income strategy is no different from having a stock portfolio growth strategy. You might be on the course of increasing your dividend income, what strategies you want to recommend other readers? 

LIKE THIS POST?
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« Goal Setting for 2013: Living The Music Instead of the Light Show
Ways to Invest your First $1000 Saving »

Comments

  1. My Multiple Incomes says

    December 14, 2012 at 10:42 AM

    Valuable tips on dividend investing! Investors need to have some sort of guidelines when investing so it’s really great that you came with this kind of list to help us know how to invest on dividends better.

    Reply
  2. Finance says

    December 17, 2012 at 5:59 AM

    The way which the facts are presented is really impressive.Thanks for sharing.

    Reply
  3. Indian dividends says

    July 10, 2013 at 8:46 AM

    Nice post. By following these simple steps investors can get profit from their investment. One important point is set your goal, without any goal your work means nothing. So you must know the reason of your investment.

    Best dividend stocks in India

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media