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Trading 212 Promo Code for The Dividend Experiment
There are numerous investors seeking an investment portfolio that strikes a harmonious balance between growth, income, and security. In this series, we’ll explore stocks that meet specific dividend criteria.
In this article, we will be focusing on Dividend Achievers.
What are Dividend Achievers?
Dividend Achievers are U.S. public companies that have successfully raised their dividends for 10 or more consecutive years. Unlike Dividend Challengers, which have a shorter track record, Dividend Achievers boast a more extended history of consistent dividend growth.
They haven’t yet reached the elite status of Dividend Aristocrats, which have even longer records of dividend increases, but they are highly appealing to investors looking for a blend of income and growth.
Why Invest in Dividend Achievers, and What Are the Benefits?
- Dividend Achievers are renowned for their ability to generate a consistent and reliable source of income. For income-focused investors, this is a paramount advantage. The regular dividend payments can supplement other income sources, making them especially appealing to retirees or those seeking steady cash flow.
- Unlike relying solely on capital gains, which can be unpredictable and market-dependent, dividends offer a dependable stream of income. Investors can count on these payments as a source of financial support, helping to cover living expenses, reinvest in the market, or simply enjoy a more secure financial position.
Long-Term Growth Potential:
- Beyond providing income, Dividend Achievers often exhibit long-term growth potential. These companies have a proven track record of success and stability. Their ability to consistently grow dividends indicates financial strength and management quality.
- As such, investors can benefit not only from the income but also from potential capital appreciation. These companies are well-positioned for growth in the long run, which can lead to an increase in the stock’s value over time. This dual benefit provides investors with a means to achieve both income and wealth accumulation.
- The historical trend of increasing dividends suggests financial stability and resilience. Companies that can weather economic downturns and still increase payouts are often better equipped to face challenges. This resilience translates to lower investment risk.
- In times of market volatility or economic uncertainty, Dividend Achievers can act as a safe haven within a portfolio. The dependable income stream and a track record of consistency can provide a sense of security for investors, reducing anxiety during turbulent market conditions.
In conclusion, investing in Dividend Achievers offers a well-rounded set of benefits for investors. They provide a dependable source of income, the potential for long-term growth, risk mitigation, and an opportunity to enhance portfolio diversification.
These benefits make Dividend Achievers an attractive and comprehensive option for those seeking a balanced and reliable investment strategy.
How did I build this portfolio?
Creating a successful Dividend Achievers portfolio involves a structured approach that can help you maximize the benefits of these promising investment opportunities.
Here are the key steps I considered to build this little template portfolio of Dividend Achievers framed in a way that can help you if you want to make your own:
- Identify and Research: Begin by identifying potential Dividend Achievers. Look for publicly traded companies with a proven track record of raising dividends for 10 or more consecutive years. Online stock screeners, financial reports, and investment news can be valuable resources.
- Financial Health: Evaluate the financial health of the companies you’re considering. Key financial metrics, such as the debt-to-equity ratio, cash flow, and dividend payout ratio, can help you determine if the company can sustain its dividend growth.
- Spread Your Investments: Diversification is a cornerstone of risk management. Distribute your investments across various sectors and industries to mitigate risk.
- Risk Mitigation: A diverse portfolio is better equipped to weather economic fluctuations, as the impact of an industry-specific downturn is lessened by holdings in other sectors.
Ok, let’s see the stocks!
I will give a little description of the company and post some graphics so you can get a general overview of the company itself. Of course, if you want more details you will have to do your own research!
LMT – Lockheed Martin
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide.
ARE- Alexandria Real Estate Equities Inc.,
Alexandria Real Estate Equities, Inc. (NYSE: ARE) is a pioneering real estate company specializing in life science, agtech, and advanced technology campuses in key innovation hubs. They partner with approximately 825 tenants and have a total market capitalization of $30.6 billion, with properties spanning 74.9 million square feet in North America. Alexandria is known for creating collaborative environments that attract top talent, fostering innovation and success. They also offer strategic capital to companies in these industries. Their unique business model ensures a high-quality tenant base, resulting in strong occupancy rates, long-term leases, and increased asset value.
BLK – BlackRock Inc.,
BlackRock, Inc. is a publicly traded investment management company that serves various types of investors, including institutions, individuals, and more. They offer services like managing different types of investment portfolios, mutual funds, exchange-traded funds, and hedge funds. BlackRock invests globally across various markets, focusing on stocks, bonds, real estate, and other assets. They use different strategies for their investments and compare their portfolio performance to well-known market indices. The company was founded in 1988 and is headquartered in New York City with offices worldwide.
BMY – Bristol-Myers Squibb Company
Bristol-Myers Squibb is a global biopharmaceutical company. They discover, develop, and sell various medical products for conditions like cancer, heart disease, and immune system disorders. The company was founded in 1887 and is based in New York, New York.
CSCO – Cisco Systems, Inc.
Cisco Systems, Inc. is a company that designs and sells networking and communication products. They serve customers across the Americas, Europe, Asia, and more. Their products include things like network switches, routers, wireless devices, and security solutions. They also offer services like technical support and work with various businesses, governments, and service providers. Cisco was founded in 1984 and is based in San Jose, California.
CMI- Cummins Inc.
Cummins Inc. is a global company that designs, makes, and services engines, powertrains, and related parts. They operate in five segments and provide diesel and natural gas engines for various markets, including trucks, buses, construction, and more. They also offer power generation systems, emission solutions, and electrified power systems. Cummins serves manufacturers, distributors, and dealers and has been around since 1919, headquartered in Columbus, Indiana.
DFS – Discover Financial Services
Discover Financial Services and its subsidiaries offer digital banking and payment services in the United States. They have two main segments: Digital Banking and Payment Services. In Digital Banking, they provide credit cards, loans, and deposit products directly to consumers. In Payment Services, they operate the PULSE network and Diners Club International, which includes payment cards and processing services. Discover Financial Services was founded in 1960 and is headquartered in Riverwoods, Illinois.
FAST – Fastenal Company
Fastenal Company and its subsidiaries are involved in the wholesale distribution of industrial and construction supplies in the United States, Canada, Mexico, and beyond. They provide a variety of fasteners and related products used in manufacturing and construction, as well as for machine maintenance and repair. They also offer other supplies and hardware, serving customers in manufacturing, construction, agriculture, transportation, and more. Fastenal Company, founded in 1967, is based in Winona, Minnesota.
SNA – Snap-on Incorporated
Snap-on Incorporated is a global company that manufactures and sells tools, equipment, diagnostics, and information systems for professionals. They operate through various segments and offer hand tools, power tools, diagnostic products, and storage solutions. They also provide software, business management services, and equipment for vehicle and industrial maintenance. Snap-on serves a wide range of industries, including aviation, agriculture, construction, and more. The company was founded in 1920 and is headquartered in Kenosha, Wisconsin.
QCOM – Qualcomm Incorporated
QUALCOMM Incorporated is a global company that focuses on wireless technology. They have three main segments: one develops and supplies chips and software for wireless communication products, including 3G, 4G, and 5G technologies. Another segment licenses their intellectual property for the manufacturing of wireless products. The third segment invests in early-stage companies in various industries, like 5G and artificial intelligence. QUALCOMM also provides services to U.S. government agencies. The company was founded in 1985 and is based in San Diego, California.
PRU – Prudential Financial, Inc.
Prudential Financial, Inc. and its subsidiaries offer insurance, investment management, and financial products worldwide. They have different segments, providing investment services, retirement products, and insurance coverages. Prudential serves a wide range of clients, from individuals to institutions, and distributes its products through various channels, including digital and agents. The company was established in 1875 and is headquartered in Newark, New Jersey.
PLD – Prologis, Inc.
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At September 30, 2023, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (114 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.
HD – The Home Depot, Inc.
The Home Depot, Inc. is a home improvement store where you can buy building materials, tools, garden supplies, and home decor. They also provide installation services for various home upgrades. The company serves both homeowners and professionals, including contractors and maintenance experts. The Home Depot was founded in 1978 and is headquartered in Atlanta, Georgia.
VZ – Verizon Communications Inc.
Verizon Communications Inc. and its subsidiaries offer communication, technology, and entertainment services globally. They have two main segments: Consumer and Business. The Consumer segment provides wireless and broadband services, while the Business segment offers various communication and networking services, including IoT. Verizon serves consumers, businesses, and government entities. The company was originally known as Bell Atlantic Corporation and became Verizon Communications Inc. in 2000. It was founded in 1983 and is based in New York, New York.
So those are the stocks in the portfolio, let’s see what it looks like when we put them all together!
I decided to market weight the portfolios, this will probably be the biggest question asked when it lands on the Trading 212 pie library as the allocations might look a little bit weird.
Because the classifiers are only based on the number of years of dividend growth it makes for an unusual mismatch of company sizes.
Therefore, in my opinion, it makes more sense to market weight the stocks in the pie rather than equally weight the tiny ones with the huge mega caps.
This obviously took more time to do itthis way but it means that the investment won’t be overwhelmed by movements in the smaller-cap stocks
For the Dividend Achievers here’s what the pie looks like:
And for those who will inevitably ask, here is the yield, at the time of making the video at least. Remember yield changes a little everytime the market opens.
The Dividend Yield at the time of making this video is 3.4%
If you want to see this pie in real life then you can follow the link here.
Finally, as I know this will get asked, will I be maintaining this pie?
As I have said before these pies take a lot of hard work to create and maintain, if you are taking it seriously so I will be maintaining the pies in this series as long as there is significant support from the community.
Unfortunately, if only a small number of people support the pie, I am better off focusing on things you like more.
You should see this pie as more of an example of a certain type of dividend-paying stock rather than a comprehensive portfolio for you to invest in!
Check out the other videos in the series and guess which one will perform the best!