Dividend Growth Investment Strategy

My goal of FIRE is to generate a sufficient stream of passive dividend income, which will adequately cover my expenses. One needs to select a strategy and fine-tune it over time to reflect the current market conditions.

I contribute regularly to my investment portfolio. This is important, because it allows me to dollar cost average my way over many years. This will provide me with the opportunity to build my portfolio brick by brick, without purchasing everything at a lump sum.

I will focus on dividend growth stocks, which are companies that raise distributions on regular basis. Since I live off distributions for decades to come, I need to overcome the risk of inflation. As such, I need to invest in stocks that can afford to increase dividend on a regular basis, thereby ensuring an inflation adjusted stream of income.

It is likely that I will own most of the stock counters in the stock exchange located in the country of my residence. I seldom sell the stock counters unless there are mandatory takeovers. I buy and hold the stock counters as long as possible. I will forget these stock counters and wait for the dividends to be credited into my bank accounts.


Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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