The Easiest Way To Improve Your Portfolio Returns

Posted On March 13, 2018 1:30 pm

The bottom line is that if you think you can time the market to boost returns, you are almost certainly wrong. You’re not going to be able to call the exact top or bottom in almost anything. But the good news is that if you buy quality income producing assets, at good prices, such as undervalued dividend growth stocks, you pretty much can’t lose. That’s as long as you have a diversified portfolio, and hold long enough for exponentially rising payouts to lift their share prices. Historically these appreciate at the same rate as long-term dividend growth.

Total return = yield + dividend growth

Keep that in mind the next time you worry over the random fluctuations in some dividend stock you own. In fact the best way to boost your returns is to ignore your portfolio entirely. Don’t check it every day, every week, or even every month. What do I do? I don’t focus on price at all. Rather I have every stock I own tracked on Seeking Alpha. When news breaks, such as earnings, or dividend announcements, I can quickly check to make sure that the fundamental investment remains intact. 99% of the time that is the case.  

As long as the dividend is safe and growing that’s all I care about. I only focus on the magic formula to getting rich over time; yield + dividend growth. Never forget that long-term value investors almost can’t lose, while short-term speculators almost never win.

About author

Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 22 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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