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The second article in a series that I've written
#1
This is the second part of my series on dividend growth investing. I think this article is unique because I do something that I've never seen anyone do before when imparting their investment knowledge (at least, I've never seen it); I actually take the person by the hand and walk them through how to analyze a stock.

It's how I analyze a stock, and the methodology is far from perfect. But I throw theory to the wayside and actually work with the person in a real life setting.

You might want to go get a drink for this. It's a long one. But it's definitely a good one in that it is approached in a unique way. If you know anyone that has a desire to learn, has read all the "You have to buy great companies at low valuations that are consistently growing their dividends. You need to analyze their fundamentals" advice but still doesn't know where to start because no one actually taught them how to do it, then this article would be a great place for them to start.

Dividend Growth Investing Part 2: How To Pick Dividend Stocks

On a more sour note, I am currently writing the fourth article in the series, but this may be the last one I am able to post on that site. It's been giving me problems of all different varieties, and I am considering leaving and moving my work elsewhere. I don't want to and I don't know where I'd go, but if I have to, that's what it's going to be. So enjoy this one for now because I don't know where or when Part 3 will be.

Full disclosure: Infobarrel is a revenue sharing website. I earn money whenever you click on the ads, as well as commission from sales made from the Amazon links, as well as another affiliate link in there.
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#2
Joey, I agree, it's a long one. My coffee pot melted because I brewed so much in such a short period of time. Big Grin

I have a few nitpicks but am not going to voice them. Save the article and then go back after a few years. I've found when I do that, I discover ways to not only improve my writing but also some misconceptions I may have had or can trace how my opinions have changed.

Regardless, I assume you know your audience and are writing for them and that's all that matters.

Thanks for sharing.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan


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#3
(11-15-2014, 09:39 AM)Dividend Watcher Wrote: Joey, I agree, it's a long one. My coffee pot melted because I brewed so much in such a short period of time. Big Grin

I have a few nitpicks but am not going to voice them. Save the article and then go back after a few years. I've found when I do that, I discover ways to not only improve my writing but also some misconceptions I may have had or can trace how my opinions have changed.

Regardless, I assume you know your audience and are writing for them and that's all that matters.

Thanks for sharing.

Both my writing and my investment knowledge are something that I'm always striving to improve. As for the latter, I acknowledged that my method of analysis can be flawed and incomplete at times. It's not perfect and I won't sit there and pretend otherwise. But I know that so many people out there that don't even know what dividend growth investing even is (a friend of mine that was asking about it was skeptical of living off one's dividends, asking why a company would even pay dividends and saying that it "sounded too easy"). For those people, I feel like this would be a great place to start.

I've been constantly adapting the way I've analyzed companies for some time now, and while I have made a bad purchase decision here and there (I bought BWP right before they cut their dividend and the stock price bottomed out), I've been doing great overall and my strategy mirrors that of the general dividend growth community. I aim for well known companies that have strong dividend histories because I know of my capacity to make mistakes and I encourage those who take my analysis advice to do the same. But all in all, while not perfect, my method has worked for me, so I'm hoping to share it with others in the hopes it works for them. And yeah, that's my audience. Those who know nothing about this stuff. I shared it here for everyone to enjoy, but ultimately those who are masters of dividend investing aren't going to learn anything new from my articles.

I'm not going to ask you to go into detail, Dividend Watcher, as you hinted you didn't really want to, but I just want to ask if your nitpicks were with my writing style (which is very humor-based and reads like a Cracked.com article, I know), or with my actual method of stock analysis? As I've said, I'm striving hard to improve both.
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#4
Joey, I went back and re-read it. My biggest nitpick was the length of the article. I was/am afraid that perhaps your message got lost amidst the banter you used expounding on your points. It may be my own biases that caused me to lose focus as I read.

Technically, and maybe it's really semantics here, "The market cap is pretty much the total value of the company" is not really a good description if you want to use the word 'value' in other contexts. You went on to explain that market capitalization is the product of the current price and the shares outstanding, which is true, but to characterize it as the value of the company may lead to some confusion. Otherwise, how can a company be under, fairly or over valued?

Overall, I think you did a solid job. It's difficult to introduce such a broad topic to a neophyte.
=====

“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan


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#5
(11-16-2014, 10:05 AM)Dividend Watcher Wrote: Joey, I went back and re-read it. My biggest nitpick was the length of the article. I was/am afraid that perhaps your message got lost amidst the banter you used expounding on your points. It may be my own biases that caused me to lose focus as I read.

Technically, and maybe it's really semantics here, "The market cap is pretty much the total value of the company" is not really a good description if you want to use the word 'value' in other contexts. You went on to explain that market capitalization is the product of the current price and the shares outstanding, which is true, but to characterize it as the value of the company may lead to some confusion. Otherwise, how can a company be under, fairly or over valued?

Overall, I think you did a solid job. It's difficult to introduce such a broad topic to a neophyte.
I love the idea behind the article as well but I must confess that I gave up on it in the middle as well Sad
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#6
I'm planning on going back and splitting the article in two, but right now Infobarrel is giving me problems still. Details aside, I can't submit articles, and anything that gets erased isn't getting put back in until the admins there figure something out.
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