EP #178 | Kickstart 2024 with Dividend Growth Investment Goals! & our thoughts on Walgreen's Dividend Cut
Jan 7, 2024
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In this episode, the hosts discuss goal setting for 2024, with one host sharing a systematic approach and the other reflecting on past successes and challenges. They also analyze the implications of Walgreen's dividend cut. Other topics include ASML shipping lithography systems to Intel, the challenges of installing machines, and the importance of engineering in technology companies. They discuss time management, investing for financial security, and considering liquidity and popularity in investment decisions, along with analyzing specific stocks like OX boy and Texas Instruments. They also discuss the potential buying opportunities for Louis Vuitton and Starbucks stocks.
Setting goals for 2024 should involve reflecting on the previous year and learning from past experiences.
Diversifying investing strategies, such as exploring high-yield investing, could be a potential goal.
Being more present and reducing phone usage can be an important goal for personal growth.
Starting with a passive income approach, like dividend growth investing, is recommended for 18-year-old investors.
Deep dives
Setting Goals for 2024
When setting goals for 2024, it is important to reflect on the previous year and learn from past experiences. One listener suggests sticking to the plan, buying on market dips, and growing dividend income in a sustainable way. Another goal is to break the €4,500 per year dividend income mark before Irish tax. Additionally, diversifying the podcast to explore different investing strategies, such as high-yield investing, is seen as a potential goal. Finally, a focus on being more present and reducing phone usage is also highlighted as an important goal.
Investing Strategy for an 18-year-old
For an 18-year-old investor, the recommended strategy would be to start with a passive income approach, such as dividend growth investing. This allows for higher risk tolerance and the ability to learn from mistakes at an early age. While growth investing may have its merits, a dividend-focused strategy provides a more stable and predictable income stream over the long term. Additionally, allocating a smaller portion towards individual stock picking can help develop investment skills and provide a more hands-on experience.
The Importance of Financial Security
Building financial security should be a priority at any age. By investing in dividend growth stocks, individuals can aim for consistent and growing income over time. While a high-yield portfolio can generate income, it is essential to carefully select reliable and healthy companies to minimize risk. Additionally, diversification and considering long-term dividend growth potential are important factors to consider.
Considering Liquidity and Popularity
When investing, it is crucial to consider liquidity and popularity. Small-cap stocks with limited trading volume may pose challenges when executing trades, especially during market downturns. Investing in stocks listed on the primary exchanges where they are most actively traded can help ensure better liquidity. It is important to be aware of potential difficulties in selling shares and to plan accordingly.
Red Flags in 10-K Reports
When reading 10-K reports, some red flags to look out for are focused with a smirking face, impairments, and goodwill write-offs. These indicators can suggest a declining health of the company or potential financial challenges. Paying attention to adjusted figures versus reported figures, as well as comparing CEO statements with the actual financial data, can also help identify discrepancies or potential issues.
Goal of Reaching €100,000 Portfolio Value
A specific goal mentioned is to reach a portfolio value of €100,000. This milestone is seen as a significant achievement, emphasizing the importance of perseverance and long-term investing. With a focus on consistent investing and potential income growth, this goal can be attained through disciplined saving and strategic investment decisions.
Investing in CEO Trustworthiness
One of the main ideas discussed in this podcast episode is the importance of CEO trustworthiness. The speaker emphasizes the frustration with CEOs who try to manipulate or boast about their company's performance, even when the earnings are bad. The speaker values CEOs who are honest and transparent, willing to acknowledge areas for improvement. Trustworthy CEOs are seen as more credible and are able to build trust with investors and stakeholders.
Attractive Sectors for Investment
Another key point addressed in this podcast revolves around attractive sectors for investment. The podcast suggests that real estate investment trusts (REITs) and the pharmaceutical sector are still attractively priced. While real estate investment trusts are not as cheap as they were previously, they are still considered fairly valued. The healthcare and pharma sectors, on the other hand, are seen as relatively good investment opportunities. These sectors are highlighted for their potential value and the stability they offer in the market.
In our latest episode, we're diving into 2024 with a focus on practical goal-setting to make this year your best one yet. We kick things off with news, including the PepsiCo Carrefour ban and ASML's groundbreaking shipment of its "High NA" lithography system to Intel.
We Discussed Walgreens' unsurprising move to cut its dividend before moving to our main topic – "How do we set goals?"
eDGI shares his systematic approach, evaluating last year's learnings, identifying areas for improvement, and crafting SMART goals. For instance, investing 1000 euros monthly in dividend growth stocks with a 3% average yield while adhering to a set plan.
On the other hand, Derek reflects on his successes and challenges from the past year, categorizing goals and prioritizing measurable outcomes. Learning from our 2023 experiences, Derek emphasizes the importance of following your instincts and staying with market shifts.
All that and more
See you on the inside!
Tickers discussed:
PepsiCo (PEP)
Carrefour (CAR.PA)
ASML Holding NV (ASML.AS)
Intel Corporation (INTC)
Walgreens Boots Alliance, Inc. (WBA)
OXY
TXN (Texas Instruments)
Cembre S.p.A. (BIT:CMB)
Whirlpool Corporation (WHR)
Aflac Incorporated (AFL)
Games Workshop Group PLC (GAW.L)
Enagas S.A. (ENG)
Starbucks Corporation (SBUX)
LVMH Moet Hennessy Louis Vuitton SE (MC.PA)
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