Low Dividend Stocks

Most of my recent purchases were what people would call growth stocks, or to be more precise, low dividend growth stocks. Companies like Disney and Visa currently offer around 1% dividend yield which is rather low for someone trying to live off dividend income. On the other hand these companies grow their revenues and earnings at a fairly high pace which makes them interesting.

The low dividend stocks currently in my portfolio are: VISA, DISNEY and maybe NVIDIA. Looking at these first two companies is a maximum of 1%. If you are planning to live of dividends this sounds horrible. However their dividend growth is great. Visa upped their dividend 20% last year and Disney raised the dividend in 2014 with 33%! If we maintain a conservative 20% dividend growth projection for the next few years both companies will double their dividend before 2020.

I don’t want to exclude great companies just because they are in their early stages of dividend growth.

Buying Disney: Betting on Entertainment

When I buy stocks I like to have a long-term positive feeling about the business and the sector it operates in. June 17th I initiated a small position in Disney. The Disney company is well known worldwide for their movies and theme parks. What I just found out a few years back is that roughly half their revenue comes from TV or more specific, from ESPN. While covering a sporting match is hardly the same as building amusement parks both businesses are entertainment. When I bought my first couple of Disney shares last month I made a bet on entertainment. Continue reading Buying Disney: Betting on Entertainment

Recent Buy: Nvidia (NVDA)

Yesterday I pulled the trigger on a new stock in my portfolio: NVIDIA. This is quite a different purchase then I am normally used to but there are several factors that made me interested in this company for a long time. At the same time I felt the need to increase the tech exposure of my portfolio, I am still looking for an entry into VGT as well. Continue reading Recent Buy: Nvidia (NVDA)