EP #177 | Our Q4 2023 Dividend Portfolio Performance | Including our buys & sells and live listener questions!
Dec 30, 2023
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The hosts reflect on the year, discuss portfolio performance, and announce a live Q&A session. They talk about stock market predictions, litigation for big companies, and favorite guests. They discuss the temptation to change investment strategies, challenges of transitioning to dividend growth investing, and their reading preferences.
Dividend growth investing provides a stable and growing income stream over time, allowing investors to compound their wealth and achieve financial independence.
European investors often choose dividend growth investing over ETFs due to higher costs, lack of dividend growth, and significant taxes on capital gains.
Actively managing a dividend portfolio can provide invaluable knowledge and experience about different companies, industries, and market trends.
Deep dives
The Benefits of Dividend Growth Investing
Dividend growth investing provides a stable and growing income stream over time, with the potential for higher returns than traditional savings accounts or bonds. Through careful research and selection, investors can choose dividend-paying stocks that have a history of increasing their dividends, providing a growing income stream for the future. This strategy allows investors to compound their wealth and achieve financial independence.
The Challenges of ETFs in Europe
ETFs can be an attractive investment option, but in Europe, they may not provide the same benefits as in other regions. European ETFs often have higher costs and do not offer the same level of dividend growth as individual stocks. Additionally, taxes on capital gains can be significant, potentially reducing overall returns. Due to these limitations and the desire for consistent dividend growth, many European investors choose to focus on dividend growth investing instead of ETFs.
The Value of Experience and Learning
While a strategy of investing in growth stocks and transitioning to dividend stocks may seem appealing, the experience gained and the knowledge acquired over time through dividend growth investing are invaluable. By actively managing a dividend portfolio, investors can learn about different companies, industries, and market trends, which can enhance their investment decision-making. This knowledge and experience can provide a solid foundation for long-term financial success.
Sources of News and Updates
When it comes to staying up to date with news and announcements in the investing world, the podcast hosts rely on a variety of sources. They use the CNBC app and seeking alpha to track general stock news and updates. For dividend hikes, they have their own database where they keep track of the information. Social media also plays a role, with their Facebook group serving as a platform for members to share dividend hikes. However, they note that there is a lack of reliable trackers for European dividend growth stocks.
Enjoying Dividend Income
Although the hosts have not withdrawn money from their dividend accounts, they do find ways to enjoy the benefits of their dividend income. For milestone achievements, such as hitting a financial goal, they may celebrate by buying a bottle of champagne or treating themselves to something special. They emphasize the importance of not postponing the rewards and finding ways to enjoy the fruits of their investing journey along the way.
Welcome to the last episode of the year, number 177. This time we start with some reflections on the year, followed by our Q4 2023 performance results and in the end up we wrap up with listener questions from some of our most loyal followers.
We hope you enjoy the show and see you on the inside!
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