My Dividends Are Producing More Dividends – Dividend Reinvestment Compounding returns

Dividend reinvesting is one of the most important concepts when it comes to growing your wealth over time. Research has shown time and again that investors who reinvest their dividends tend to outperform those that don’t over time. The outperformance can be huge and could be in the double to triple digits over the long-term! Have a look at this example on Galxosmithkline (GSK) to see how dividend reinvestment would have boosted returns. What is Dividend Reinvestment? In short, dividend re-investment is a strategy that allows investors to own more shares or units in a fund without putting their hand in their pocket for more cash beyond the original investment. […]


A Share Of Stock Is Just An Ownership Stake In A Business – Unilever Case Study

I recently read a report that the young generation of today are the most adverse to the stock market in recent history. I think a big part of the reason people are scared away from investing is they don’t understand that a share of stock is a piece of ownership. Let’s look at Unilever as an example. When you look at the company, you see a business that sells great products ranging from Lynxs deodorant to Magnum ice cream to Toni & Guy haircare. Last year, it brought in £43,171,950,000 in sales. After paying all of the expenses, salaries, and taxes, the owners were left with £4,245,700,000 in profit. Since […]


4th Quarter Dividend Income + Annual Dividend Summary 2

Another quarter has passed by, and it’s time for me to post the dividends that my ISA portfolio earned in the months of October, November and December. It’s hard to argue about the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering your living expenses. I hope these quarterly dividend income reports provide inspiration for any investors out there that are just starting out. It shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. In total, I […]


Creightons PLC (LON:CRL) Share Purchase – The Opportunity of Investing Small Caps Stocks

Over the past few weeks, I have been increasingly looking into smaller companies as I believe the valuations on offer in this sector are far more favourable than those of larger companies at present. Most big blue chip companies – the ones I prefer to invest in – have seen their valuation stretched as the big institutional investors continue to pour money into them and have largely shunned small-cap stocks. This has provided an opportunity for small investors like myself to exploit. Below is a bit of a background of this opportunity and why it has come about. Over the past couple of decades, economic expansion as a result of […]


Solid State Share Purchase – Small Cap With Good Growth And Income Prospects

It feels like it’s been a while since my last outright purchase. And there is good reason for this. It is becoming extremely difficult to find value within the big blue chip companies I like to invest in. On the FTSE 350 index, there are not many shares I am willing to buy at current levels as I believe many of them are overpriced. The three companies I believe that are offering decent value at present are GSK, Imperial Brands and Shire but with all my recent monthly purchases, these three stocks are fast becoming full positions – they already account for 17% of my portfolio. (For full disclosure, I […]


November Monthly Stock Purchase – High Yield At A Discount 3

2017 has been the year of growth stocks. November was the perfect epitome of this as the month saw the trend of growth outperforming value in the markets. This has caused many investors to rotate their portfolios and ditch solid cash generators in favour of higher growth companies. Too many investors or should we call them speculators have been pushing growth company valuations to obscene valuations and have left high quality free cash flow producing businesses in the dust. Its almost as if ‘investors’ have forgotten that valuation matters and instead have thrown caution to wind in search of instant wins. This has caused solid dividend payers to go out […]


A Year In The Markets And The Path Ahead

What a year it has been in the markets. Neither the vengeance of Mother Nature, North Korea’s threats of nuclear retaliation, an increasingly fractious political environment both at home and abroad, the first year of Donald Trump, a rising terrorism threat, nor the prospects for coordinated monetary tightening by central banks in the US, the UK, and Europe were enough to shake investor conviction over the past year . Global equity markets have roared over the past year and continued their advance unabated. Investors who were waiting for a chance to ‘buy the dip’ have been left on the sidelines still awaiting an opportunity to do so. Such has been […]


4 Factors To Consider Before Investing In A Consumer Staples Company

When Jeremy Siegel and Jeremy Schwartz were doing research for the book The Future for Investors, they wanted to find the best performing stock from the original 1957 version of the S&P 500[i]. What they found wasn’t an exciting technology stock, or a behemoth oil company, but rather a simple consumer stock: cigarette maker Philip Morris (now called Altria Group). What’s more, Siegel and Schwartz found that 11 of the top 20 long-term performers came from the same boring economic sector: consumer staples. And Jeremy Siegels findings were not an outlier. Consumer Staples companies – those that sell essential repeat everyday products such as food, beverages, tobacco and household items […]


Accrol Papers – A Catastrophic Loss From A Small Cap 1

Every Investor, through the course of their investment lifetime, will experience a negative setback in the form of a bad investment decision. No investor has a perfect record. And if any of them were to ever tell you otherwise, you can be sure that they are giving you ‘alternative facts.’ Even the greatest investor of all time, Warren Buffet, has made bad decisions. Most notably of these was the purchase of Dexter Shoes which has cost Berkshire Hathaway an estimated £7.2 billion and growing to date – as the purchase was made using Berkshire Hathaway shares! Ever since I launched my income focussed portfolio over two years ago, it has […]


Billionaire Charlie Munger On How To Get Rich Through Investing 1

One of my favourite investment thinker and theorist is Charlie Munger. And if you have read any of his investment pieces or listened to any of his interviews, you would understand why. Mr Munger is a stern believer that an investor would be better served by focusing on better quality businesses, even if the price were higher, because those businesses could be held for decades, continually churning out cash and profits for the owners. This level of thinking rubbed off on his long-time business partner, none other than the legendary Warren Buffet, and led to Buffet acquiring stakes in quality companies such as Coca Cola and shunning the “cigar butt” […]