Tag Archives : passive income







RWS Holdings PLC Stock Purchase – Buy Quality Companies During Market Selloffs

What just happened this past week? After a year and a half of smooth sailing, volatility reeked havoc in the stock market this past week which resulted in huge fluctuation in stock prices. For investors with cash on the sidelines, it provided a good opportunity to ‘buy the dip’ and buy certain shares at 10 – 15 % off. I do admit that I was a little slow in reacting to the initial sell-off as there were a number of shares offering attractive valuations. But thankfully I was able to pull the trigger and buy myself shares in a company I have been following for a long time now – […]


My Dividends Are Producing More Dividends – Dividend Reinvestment Compounding returns 2

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. […]


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 […]


May Stock Purchase – GSK, SHP and The Importance of Income 4

The month of May continued to see markets at record highs. For someone like me who is in the asset accumulation phase of their life cycle, this is terrible news. This is because I don’t like paying top price for ownership stakes in companies. I or anyone else for that matter who has a long time horizon in front of them should wish for languishing markets so that we get the most bang for our back – we get more shares for the same amount spent. Unfortunately the persistence of low interest rates by various central banks has meant stocks are at record highs and I need to pay up […]


First Quarter Dividend Income

£347. That is the amount I received over the first three months of the year. Considering I only received £120 in the same period last year, I can safely say that my dividend strategy is slowly chugging along and proving to be successful. Yes, part of the increase from £120 to £347 is due to adding more money into my portfolio and buying more stocks. But the other part which is much more satisfying is the fact that the companies I own raised their dividends without any effort from me – more money for doing nothing other than holding shares in wonderful businesses. Sure, I’ll take that. So what does […]


I made £1500 in Passive Income last year – This is how I did it 2

One of my new years resolutions for 2016 was to build a stream of Passive Income. Unlike most resolutions which are easily forgotten once the first week of January comes to an end, this was one I was determined to follow on. I needed to stop being broke and start being flush with cash. I knew that I had to buy more money. The reasons for wanting to get started on the passive income journey are simple. I wanted to earn continuous streams of money without having to do any work. I wanted to earn money whilst I slept, ate, socialised and played football. I wanted my bank account to […]


To Be a Successful Stock Market Investor Think Like a Business Owner

Modern day stock picking is akin to gambling money in a casino, you place money on a particular ticker symbol and hope that it goes up. How many times have you read an article on that ‘one magic stock’ or seen people speculate on a single stock based on an online forum. The majority of people think that the stock market is a route to overnight millionaire status. The mass media has led people to believe this as they selectively run stories on people who have become millionaires overnight based on a single stock pick whilst sunning the countless others who have lost it all by placing everything, including their […]


December Dividend Income – How to go about building a dividend machine as a beginner 6

If 2016 has taught me anything, it would be that dividends are king. Throughout the volatility, political shocks and market turbulence, one thing has remained certain – great companies that I have shares in have paid me an increasing stream of dividends. Make no mistake, this is no accident. The truly great companies make profits no matter the market environment Take Royal Dutch Shell (RDSB) for instance. It has paid out an ever increasing dividend for over 60 years now. This means that it has not cut its dividends during times of war, political upheavals, recessions, revolutions, oil embargoes, financial crises all that has happened in between. It is a […]


National Grid Share Purchase – The Ultimate Blue Chip Bond Proxy

In the current low interest rate world, investors have had to bend the rule book. Whereas in the years gone by, you could get a safe and stable income via a portfolio of bonds, it is no more the case. Investors have had to turn to stocks (equities) of companies who produce predictable cash flows year after year in order to get their required level of income. They have had to turn to dividends from bond proxies. What are Bond Proxies? Bond Proxies are shares of companies whose cash flows and profits are very consistent – like coupons paid on a bond – and they also pay out a large […]


Stock Purchase: Merchants Trust and Dunedin Income Trust – Buying Investment Trusts at a Discount. 7

As I write this in October 2016, stock markets are at record highs and the very best businesses are trading at high valuation multiples. The FTSE 100 has crossed the psychological 7000 levels and is trading at a P/E of above 20 and a dividend yield of 4%. This is in stark contrast to the beginning of the year when it was trading at 5800 and the market was yielding 4.9%. For investors that sunk m money into the markets during the lows of Jan/Feb of this year, it has turned out tone an excellent deal as they were able to buy many stocks at a discount of 10% – […]