Dividends should be a central focus for any sound investing plan. Luckily for us, there has been a recent explosion of a vast number of reputable and educational dividend blogs online.
Why Dividends Matter
I’ve written in the past about why you should invest in stocks with dividends. Simply put, the income from an investment is an instant boost to your portfolio.
Income, or interest, from an investment or loan creates a reward for money upfront. The lender gives up capital now with the risk of not getting it back in order to earn more money through interest.
This interest can either compound for you or against you. It’s the same reason why your credit card won’t be paid off for decades with minimum payments. It’s also why even a small amount invested over the long term can create massive amounts of wealth.
Stocks that pay dividends provide both income and price appreciation through the value of the business growing.
Since the best dividend stocks tend to increase their dividend payments each year, the income received increases exponentially. Smart investors reinvest their dividends which also increases the income received exponentially.
So now you have two forces of compounding interest working for you in a single investment. That’s the power of dividends, and that’s why you should learn how to invest with dividends.
Of course, we have plenty of articles on dividends, value investing and tips for beginners on our own site. But there are other dividend blogs out there that could be worth a follow, here’s the list [Click to Skip Ahead]:
- The Conservative Income Investor
- Sure Dividend
- Simply Safe Dividends
- The Dividend Guy
- Div Hut
- Dividend Diplomats
Dave and I recently interviewed Ferdi S, owner of DivGro, on our podcast about his many years being a Dividend Growth Investor.
Ferdi has an inspiring story; having come from South Africa, Ferdi had a late start to investing at the age of 40. Through that, he has built a portfolio of great dividend payers.
Like with the stocks he’s looking to buy, Ferdi tends to ensure that his dividend stocks are increasing their dividend every year.
That way, his portfolio can provide double compounding streams of returns and income.
See all of the great metrics and resources that Ferdi himself uses to find and invest in good dividend payers (and let him know I sent you 😉).
This is an excellent dividend blog written by Tim McAleenan Jr. Tim teaches about combining the power of dividend growth and long term holding periods with a buy low strategy. Sounds a lot like me.
Tim’s Income Investing Archives are filled with articles covering many top stocks such as Walmart, Coca Cola, IBM, Bank of America, and more. What I especially like is that he takes the time to talk about the strategy and mindset behind why he likes certain stocks and their price.
Like I did when co-founding The Money Tree Investing Podcast, Tim uses the metaphor of investing in dividends as planting a dividend tree. Even during tough times, you could stop “planting” and your “tree” would naturally continue to grow. I couldn’t agree more.
The focus behind the blog is finding income period, whether that’s in treasuries, bonds, or dividend paying stocks. It just so happens that today’s best income opportunities are in stocks, which is why Tim writes about them.
This emphasis on income is exactly why you should follow this blog. Turns out, I’m not the only one who has figured out the importance of income and compound interest with your investing.
Ben Reynolds is the founder behind the popular dividend blog, Sure Dividend. Ben frequently writes about and updates lists on “Dividend Aristocrats”. Aristocrats are S&P 500 stocks with a track record of raising their dividend for 25 consecutive years or more.
The investing philosophy behind this website is Ben’s “8 Rules of Dividend Investing”. These combine valuation and dividend health metrics with common advice, such as diversification.
Looking at the 8 Rules, with inclusion of both P/E and growth, shows that there is more to these criteria than just selecting any Dividend Aristocrat. Ben is a follower of Benjamin Graham and seeks to find an adequate margin of safety.
In fact, he recently guest posted on my blog about the validity of the Graham Number in today’s investing environment. A metric like Graham’s can quickly eliminate overvalued, bubble-like type stocks. That can be very useful at times.
Like Sure Dividend, Simply Safe Dividends focuses on finding good dividend yields and growth. But, with an additional emphasis on safe business models and valuations.
The president of the Simply Safe, Brian Bollinger, has spent over 10,000 hours in the investment management industry. He has an impressive educational background and is happy to teach others what he knows.
Brian also guest posted on this site about how he selects high quality companies with various important financial metrics. It really is quite an informative and expansive article.
This is a blog written by a guy named Mike. He has an interesting background, where he was able to take several tens of thousands of dollars from a bank loan and turn it into $70,000+ in a very short period of time.
Mike subscribes to the dividend growth investing world, yet he does it in a little more aggressive way by splitting his portfolio into growth and core. The growth portion tries to find high flying stocks that can appreciate in a very short time frame.
On the website you can find Mike’s 7 investing principles. They are similar to mine in that he uses various financial metrics but with a specific emphasis on dividends.
This is another dividend blog that subscribes to dividend growth investing. Clearly the blogs on this list understand the power of double exponential growth that can occur from a growing dividend held over a long period of time.
I really like the monthly updates that are posted to this site. Every dividend payment and stock holding is disclosed and reported, down to the penny. It’s a great way to document the journey and watch the passive income stream grow in real time.
This blog is a two-man effort that combines two topics into a similar goal. This synergy of dividend investing and frugal living begets success upon success. Finding success in one area compounds into success in the other.
The guys really put everything they’ve got into trying to reach financial freedom, which means having money work for you instead of you working for money. Dividend stocks are an excellent way to do this.
The author of this blog is an anonymous baby boomer who has been writing about dividends online since 2007. His site was actually one of the first I ever stumbled on when first learning about the investing world.
Not only does this site provide valuable education, but there is also an impressive portfolio of many dividend blogs. The author is very popular on Seeking Alpha and is clearly a leader in the dividend space.