A major benefit of dividend growth investing is that it allows me to sleep well at night. Unlike in the past with momentum stocks I would always have to monitor the companies on a daily basis and sometime hourly, a dividend growth portfolio is quite the opposite. There is usually little movement with safe dividend growth companies, so there is less of a need to check on it on a daily basis. In fact the beauty of a safe dividend growth portfolio is one that needs very little attention and you almost never need to check on it.
In my DGI Portfolio, I have a mix of low beta stocks, so the daily fluctuations are small. Honestly, I don’t even need to look at the stock market every day if I don’t want to. It is truly a Sleep Well At Nigh (SWAN) portfolio. I can leave it alone for a long term and let the dividends pile up. And the added bonus is that I know these dividends will also grow over the long term. And this is not even to take the price of the stock in consideration. Generally, if the company’s dividend does well, the stock price will follow. And that just adds to the total return. This type of investing really helps to build a steady stream of growing passive income.
My goal is to use this portfolio to help me achieve financial freedom in the long term. In the mean time, I will continue to work hard, pay off debt and save for the future.