I’ve been hooked on dividends for over a decade. And like most things, dividend stocks go in and out of fashion with investors.
Why collect a few percent yield from a dividend stock when Treasuries are paying their highest yields since 2007?
We know the answer: Time in the market is more important than timing the market. We also know that to really unlock wealth-building potential we reinvest our dividends.
Always chasing the next big idea means we will lose out on the compounding effect of reinvesting.
Plus, we held Current Yield stocks in Yield Shark with yields well above 5.5%, the peak in short-term Treasuries. We continued to outperform and had a great year in 2023.
Now, interest rates are off their peaks and expected to drop further. You can bet that we’ll see yield-hungry investors move back into dividend stocks.
We will continue to use our same strategy, however, we will have to be more cautious to not overpay. Remember, when a stock’s price goes up, its yield goes down.
As dividend stocks regain their popularity, it will be more important than ever to know what you want and need out of your dividends to deploy our money more accurately.
Setting Your 2024 Intentions
Intention sits at the heart of my investing strategy. It requires you to know your goals and pick the stocks that meet them. That’s why I sort dividend stocks into two groups: Bedrock Income or Current Yield. As we enter the first week of 2024, it’s important to make sure we’ve taken stock and know where we are heading for the year.
If you set a New Year’s Resolution, I hate to break it to you: They are rarely achieved.
Research shows only 9% of people who make resolutions actually complete them. Roughly 23% quit by the first week, and 43% quit by the end of January. They fail because they start with the assumption that something about their life is “not good enough.” This belief is reinforced by thinking they can only be truly happy if they acquire this “thing.”
In yoga philosophy, we use a sankalpa—an intention formed by the heart and mind. It gives us a sense of direction but does not focus on the traditional presumption of “lacking” found in resolutions. It’s all about intent.
So, be sure to devote some time to establish your financial intent for the year. Here are some examples:
I am building wealth for a better future/leisurely retirement/my grandkids.
I am aware of my spending today, so I can invest more/save more for a better future.
These are just ideas. When you form your own intentions, state them in the present tense—and tack on a reminder of why you are pursuing them.
So, look back on 2023 and know where you stand financially. Then set your intentions for the journey ahead. If you want more guidance on setting and achieving your intentions, head over to my new YouTube channel. I will be releasing more educational videos over the coming weeks.
Other Resources for 2024
I am super excited about this year. Part of my intention for 2024 is to keep creating great content for all my readers. I will target investor education, dividends, and the market in general across several social media platforms.
Last week, I sent you a link to my new four-part video course for beginners. And I want to hear from you with ideas about other investing areas that you’d like me to break down.
Plus, we will soon have a Dividend Digest area in our new Mauldin app where we can interact.
If that’s not enough to be excited about in 2024, I’m also speaking at two MoneyShow events in January and February. I would love to see you there.
The first one is a virtual event and will run from January 16‒18. The theme is “Your 2024 Portfolio Playbook.”
I’ll be sharing my presentation titled “The Stampede into Dividend Stocks Starts Now” on Wednesday morning. I will cover the three types of high-yield stocks you need to be watching in 2024. You can attend for free from the comfort of your own home. Just register here to claim your ticket.
I will also be at the MoneyShow/TradersExpo in Las Vegas in February. The conference runs the 21-23 and I will speak on Friday afternoon on “How to Triple Your Dividend Yield Without Excessive Risk.” I welcome the opportunity to meet some of my readers face-to-face. If you’re interested in attending, you can find all the details here.
For more income, now and in the future,