Weekend Reading – Dividend income, stock investing, diversification, pending recession and more

Welcome to some of the best personal finance and investing articles around for your Weekend Reading friends.  I only managed one post this week and that was how I used to sabotage my portfolio. Those days are over.

I found a number of cool investing articles this week and I hope you feel the same. Check them out, thanks for reading and sharing My Own Advisor and see you here again soon!

Larry MacDonald featured financial analyst and blogger Tom Drake in this Me and My Money column.

Tawcan shared some dividend income.

Here are seven essential saving and investing tips.

Kyle Prevost and Roadmap2Retire shared an interesting dialogue over this reader question about individual stock investing.

Dividend Mantra said the first $100,000 to save is the hardest.

A Wealth of Common Sense wondered if international diversification is worth the risk.  Here’s Ben’s take:  “Global diversification allows intelligent investors to take advantage of the reactions, biases and mistakes of investors in other markets. Even with increased correlations, investors around the globe are never going to be completely in sync with one another.”

Kevin Press believes Canada might be in a recession.

Here’s an extensive insurance infographic associated with medical preconditions courtesy of InsurEye.

Dividend Growth Investor wrote about the biggest investing sin.  Not investing at all would top my list instead.

12 Responses to "Weekend Reading – Dividend income, stock investing, diversification, pending recession and more"

  1. Actually Mark, I disagree with your comment. Starting early is important, but only when you have the right tool to harness the power of compounding. If you start early in the 1990s, but then chase technology stocks, try your hand at online daytrading, and subsequently lose money or thread water for 10 -15 years, starting early would not have helped at all. The chance is very high that you would have gotten frustrated with investing, and just abandoned it altogether.

    1. Fair point DGI and those examples are good ones. I know for me I am happy to have found a nice blend of dividend investing AND indexing – I feel like I’m getting the best of both worlds.

  2. Hi Mark,

    Those who read my site carefully know that I am not against indexing. The point of the article was not to say indexing is bad – it was to say that hopping between strategies without allowing them to do their magic compounding is bad.

    Somehow, despite stating on several occasions that 80 – 90% of individual savers are better off in an index fund, I have attracted the hatred of index investors. Lucky for me, my success as an investor does not depend on the “opinion” of others.

    How did you like the UK?

    1. I know you’re not DGI re: indexing but I think because you’re so passionate about dividend stocks it gets lost in translation. I still believe not investing at all is a great sin.

      You also are correct and your advice is good: “I believe that in order to be successful in investing, one needs to select a strategy, and stick to it for decades.” Jumping in and out of investing styles can be very damaging to a portfolio.

      Also luckily for me, maybe?, I have a hybrid approach to investing so I feel I get the best of both worlds but also, I make the indexers less annoyed but then I also frustrate the devout dividend investors skeptical as well. 🙂

      I like the recent KMI and COP dividend hikes, very unexpected but I’ll take it! You?

  3. Fair point.. Investing early is important – a dollar invested in your 20s can generate a dollar in income in 50s or 60s.

    I have lower expectations for KMI dividend growth than most, though a 5% yield growing at say 5%/year should deliver decent returns over time. I was surprised that COP raised the dividend. It is interesting to observe the slow motion decline in oil, and how it affects so many things – this train wreck reminded me of the GFC in 2008 – 2009. Meaning, there will be pain spreading around ( or it has in case of Canada) though opportunities as well.

    1. I figure if most of my 30 dividend growth stocks in Canada (and a handful in the U.S.) can increase their dividends by 3% or more per year, I’ll be doing very well. I can see more pain ahead but that’s good news for investors like us in our asset accumulation years.


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