The 7 Investing Principles I Follow To Succeed


Dividend GuyMy name is Mike, the creator of Dividend Stocks Rock and owner of the very successful blog, The Dividend Guy Blog.  I started investing in 2003 in natural resources & mining stocks with $0 in hand and a line of credit of $20,000.


During my first three years of trading, I accumulated a $50,000 down payment, net of debt, for my first house.  I then converted my strategy to a dividend growth portfolio in 2010. Those who follow The Dividend Guy Blog have seen my results so far, but if you don’t know the blog, you may want to dig a little bit more into my mind prior to deciding if this strategy is the right one for you. The purpose of this page is to share with you the seven dividend rules I follow to succeed on the stock market. I linked to all sources used for further reading.


I used to struggle with the same issues millions of small investors deal with on a daily basis. Which stocks to buy? When to sell them? How to find the time to manage my portfolio? How to diversify? I wasn’t into dividend investing until looking at my portfolio returns in depth to realize I was having difficulty keeping up the with the market.  The root of the problem was a very poorly built portfolio that lacked structure and the components required to build a sturdy baseI made good money from the stock market but I was taking unnecessary risk to achieve my investing goals.  From that point on, I was determined to create a portfolio strategy that would allow me to benefit from dividend growth stocks as a solid foundation.


We all ask ourselves the same questions…


Which stocks to buy?
When to sell them?
How to diversify?
How to find the time to manage my portfolio?

I’m not exactly following the buy & hold strategy recommended by many dividend investors. I like to build a core portfolio of stocks I would probably never sell but I also like trading a few more stocks in and out to make a healthy profit. Imagine if you could still invest actively in individual stocks while building a rock solid portfolio.  Imagine if you could use the fundamental principles of investing without getting bored or having to read hundreds of pages of stock research.


Dividend Stocks Rock (DSR) follows the same dividend growth model I use to manage my own portfolio. I didn’t come up with these investing rules out of the blue. Each rule has been written after these four years of trading dividend stocks, reading through many financial research publications and listening to top investors and portfolio managers’ wisdom.


Principle #1: High Dividend Yield Doesn’t Equal High Returns
Principle #2Focus on Dividend Growth
Principle #3: Find Sustainable Dividend Growth Stocks
Principle #4: The Business Model Ensure Future Growth
Principle #5: Buy When You Have Money in Hand – At The Right Valuation
Principle #6: The Rationale Used to Buy is Also Used to Sell
Principle #7: Think Core, Think Growth

Dividend Stocks Rock Principles

The first question that comes to mind as an investor is: why choose dividend investing over all the other investing strategies used by investors? In 2011, Ridgeworth Investments highlighted the main benefits of dividend investing:


Corporate Finance Health. The dividend evolution of a company is a transparent image of the companys ability to generate wealth for its investors over time. Dividend growth is a direct translation of managements confidence in the companys future.


Significant Source of Total Return. From 1926 to 2011 Dividend paying stocks are responsible for over 43% of the S&P 500 returns (source JP Morgan Asset Management). Therefore, almost half of your total return is found in dividend payments.


Important Impact on Stock Returns. Research has proven the impact of a dividend announcement. On average, a dividend increase pushes the stock higher by 2% (Aharony and Swary,1980), a dividend initiation increases the stock value by over 2% (Michaely, Thaler & Womack, 1995) and a dividend cut decreases the stock value by 9.5% (Healy and Palepu, 1988).


Lower Relative Volatility. Have you ever heard of the expression getting paid to wait. During bearish markets, dividends are like a buffer to your portfolio valuation. While the value of your stocks fluctuate, you still receive your dividend payout which reduces your portfolio volatile.


Higher Returns Regardless of Interest Rate Movements. Bonds holders think they hold safe securities until the day the FED raises its interest rate. Then, they realize bond values can drop as fast as a stock in a market crash. With interest rates at their lowest, dividend stocks become a great solution for income dependent investors.


Okay, now you know why to look for dividend paying stocks. But which kind of dividends should you aim for? High yield? What about Dividend Growth? Which kind of payout ratio is reasonable? Here are my answers to these questions.


High Dividend Yield Doesn’t Equal High Returns


Some investors look for the highest dividend yield possible. Did you know that the highest dividend yield stocks underperform more reasonable yielding stocks? The Hartford Mutual Funds company wrote:


“The study found that stocks offering the highest level of dividend payouts have not performed as well as those that pay high, but not the very highest, levels of dividends.”



Following this principle, I usually aim for dividend yields over 2.50% but under 5%. During a bullish market, I’ll even start being cautious with stocks paying over 4% in dividend yield. I’ve done my own research and even built a case against high dividend yield.



Focus on Dividend Growth


Beyond dividend yield, there is dividend growth. To be honest, the dividend yield doesn’t matter to me. I even picked stocks with yield as low as 1% (Disney:DIS) for example. What really caught my attention is management’s will to increase this payout year after year. Here’s an interesting quote from Saturna Capital:


“Indeed, dividend growth has been a much larger determinant of equity returns in this new era of low benchmark rates and higher levels of uncertainty.”



At DSR, we look at dividend growth over 5 and 3 years. We ensure both metrics are positive to ensure that management is dedicated to return more wealth to investors over time. This is also a great indicator of management’s confidence in the company’s future. In addition to including dividend growth stocks in our DSR portfolios, we also provide a list of Pure Dividend Growth stocks updated weekly.



Find Sustainable Dividend Growth Stocks


Since 2009, companies have been very careful managing their payout ratios. The dividend payout ratio tells you what percentage of the earnings per share (EPS) is used to pay the dividend. In an ideal world, the dividend payout grows at the same rate as the EPS in order to keep the same payout ratio. We can see that recently, companies have grown their EPS faster than their payouts:


Dividend Payout Ratio of Stocks in S&P 500 Index 30-Year Average vs. 2014, period ended June 30, 2014


Source: Compustat via FactSet. Indexes are unmanaged, and one cannot invest directly in an index. Past performance does not guarantee future results.


This graph shows us there is plenty of space for more dividend increases in the future if you select the right stock. Companies included in our portfolios show a payout ratio under 80%, most of them have a payout ratio under 65%. We want to make sure companies not only continue paying their dividend but will also increase it in the future.


This covers which type of dividend stocks you should look for. But the dividend payout is only the result of a sound business model. There are other metrics to consider prior to buying a dividend stock. These metrics are linked directly to the company and not its payout.


The Business Model Ensure Future Growth


When you think about what the dividend truly represents for a company, you quickly understand it’s the “extra money” left in the bank account once all profitable projects have been funded. Instead of leaving this money sleeping in a bank account, the company can generate more interest in its stock by distributing dividends. Businesses which pay dividends and increase them will outperform other stocks:



Source: Edward D. Jones

Now how can you find these marvels? This is why you need other financial metrics to identify companies that will be able to sustain and increase their dividend for the next 10 years. At DSR, we look at the 3 and 5 year metrics for Sales and Earnings per Share (EPS) growth. We only select companies showing positive growth on both the 3 and 5 year periods. Since an economic cycle lasts between 5 and 8 years, a strong company should be able to post increasing sales and earnings over these periods.



3 year revenues = positive
5 year revenues = positive
3 year EPS growth = positive
5 year EPS growth = positive
Why look for these metrics? Technically, you can’t expect to pay dividends if you don’t make money (earnings per share). Following the same train of thought; it’s impossible to continuously increase dividend payouts without increasing the EPS. But in order to increase the EPS, you need to increase your revenues (sales). The more sales, the higher EPS (if your margins are positive of course!). And the higher the EPS growth, the higher the chances of seeing an excess of cash flow converted into a dividend increase.


The reason why I don’t require a 5% or 10% growth or the one year data on both metrics is to avoid discarding strong companies running into small bump in the road. As you can see in the following graph, many great companies will experience a rough year of sales:



This doesn’t mean they are not good companies to include in your portfolio. It is important to keep in mind that revenues can’t always climb higher every year and it’s only normal that there are small, temporary declines in sales. The first 4 dividend investing principles are not the ingredient of a magic formula that will guarantee your investing success. However, it will help you focusing on the right stocks. Overall, I follow 7 investing principles that have been proven and provided me with great returns since 2010, the year I started to pick dividend stocks.


Since 2012, I’ve  announced my stock results online and I beat my benchmark each year.  This means I not only made money in a bullish market, but I’ve made more money than the index I’m comparing with. The majority of my Dividend Stocks Rock portfolios are also beating my benchmarks.


If you want to learn more about those 7 investing principles, you can keep reading and find out about what Dividend Stocks Rock has to offerIf you have read enough and want to start using Dividend Stocks Rock, you can select the DSR membership option that suits your needs and benefit from our 30 days no question asked refund policy:
One Year Investor Package
17% Rebate on the monthly subscription
8 Dividend Stocks List
12 DSR Portfolios
DSR Premium Newsletter
DSR Exclusive Ranking
60+ Stock cards
Bonus Book!
Long Term Investor Package
$199.95/2 years
45% Rebate on the monthly subscription
8 Dividend Stocks List
12 DSR Portfolios
DSR Premium Newsletter
DSR Exclusive Ranking
60+ Stock cards
Bonus Book!
Monthly Package
8 Dividend Stocks List
12 DSR Portfolios
DSR Premium Newsletter
DSR Exclusive Ranking
60+ Stock cards


Buy When You Have Money in Hand – At The Right Valuation


One of the most debated questions among investors is definitely when is the right time to buy a stock. There are many ways to determine the “perfect time” to add shares to your portfolio. Most of them are just gimmicks to take money out of your wallet. At DSR, we would rather buy stocks when we have the money available. Sleeping money is always a bad investment. There are always great opportunities on the stock market. In 2014 for example, there were nice buying opportunities in February, April and August:



But let’s be honest, each time we hit these headwinds, we start reading about dozen of reasons stocks would continue to go down. In January, results weren’t as high as expected, then we heard it was the end of the party and a 10% correction was to follow the 2013 crazy bull market. Similar stories popped-up in August. Therefore, how is it possible to call the shot and aim for the perfect moment to enter a specific stock? Take a wider range and look at the S&P 500 over the past five years:



Where are the great opportunities of February, April and August 2014 on this graph? You are right, they are very small and insignificant. The only truth I see on this graph is the following: once you have selected the right stock, the right moment to buy it is now, time will do the rest.


However, it doesn’t mean that you should buy everything you see because you have some savings aside. There is a valuation work to be done. In order to achieve this task, I will start by looking at how the stock market valued the stock over the past 10 years by looking at its PE ratio:
 JNJ_chart (7)
This gives you a good idea of how the stock market value the stock you are looking at. But the PE ratio is not enough. As a dividend growth investor, I also like to consider the value of a company solely based on its dividend perspectives. I use the dividend discount model (DDM) with a double stage dividend growth. The double stage calculation enable me to select a dividend rate for the first ten years (to reflect if I’m bullish or bearish for the short term) and then use another growth rate for the following years.
Here’s an example of valuation calculation with Johnson & Johnson (JNJ):


jnj valuation

Principles #1 to #4 cover how to find the right companies. Once you have found them, the sooner you buy the stock, the sooner you start cashing its dividend.



The Rationale Used to Buy is Also Used to Sell


If buying seems complicated, selling stocks is probably worse. I wrote a complete guide around the right time to sell which I will summarize with the following rules:


I never sell a stock because I make X% on it;
I sell a stock because the upside potential has materialized;
I never sell a stock because it is at its highest price ever;
I sell a stock because I don’t see how it will continue to go higher;
I use a stop sell instruction to protect my profit once I’ve decided the stock can’t reliably go higher.


I have explained how I select companies to be part of my portfolio. These are my reasons to buy. Then, if the company doesn’t meet these requirements upon my quarterly review and don’t see how it will get back on track, I simply push the sell button. The reason to buy a stock becomes my reason to sell it. Let me ask you this question: If a stock is up 50% in my portfolio but still shows upside potential, why would I sell it?


The classic example is when a company suspends or cuts its dividend – that’s an immediate sell trigger. Technically, you should get to this extreme by following Dividend Stocks Rock’s dividend growth model. Since we follow revenues, earnings and dividend metrics, we will highlight stocks that with eventually have problem paying their dividend. Each quarter, we review all stocks in our portfolios. We look at their financial results and answer these two questions:


A) Is the company heading towards my expectations (e.g. is the potential being realized or was it just a mirage)?
B) Does the company still show future upside potential (the stock may go up, and still shows it could climb higher)?


When the answer to one of these two questions is a blunt “no”, the sell is triggered.
Finally, my investment decisions are motivated by the fact that the company confirms or infirms my investment thesis. Once the reasons (my investment thesis) why I purchase shares of a company  are not valid anymore, I sell and never look back.


Think Core, Think Growth


We have a different way of managing our DSR portfolio compared to the regular “buy & hold” dividend investor. We tend divide our portfolio in two segments:  the core portfolio built with strong & stable stocks meeting all our requirements. The second part is called the “dividend growth stock addition” where we may ignore one of the metrics mentioned in principles #1 to #5 for a greater upside potential (e.g. riskier pick as well).



The reason why we has. It’s fairly easy to select a company like Procter & Gamble (PG) since it has been in business forever and has always paid a good dividend. However, picking-up Seagate Technology (STX) after the stock tumbled or Apple (AAPL) when it was going nowhere but started to pay dividends is another both in our portfolios is to generate higher return.


While the core section is like any other dividend growth portfolio, the addition segment will require closer follow-up. This is the part of our portfolio that will most likely generate the most volatility. Since we don’t have the same risk tolerance, we have divided our portfolios into “conservative” and “growth” models. This means the conservative one won’t likely include the “addition” segment and will concentrate on the core portfolio.


How This Wisdom is Reflected in Dividend Stocks Rock

This resumes the investing principles I use to manage my dividend growth portfolio. In the end, the true power of dividend investing is materialized through time. The longer you keep your dividend growth stocks, the higher the return you will earn from your investments.


Dividend Stocks Rock is an online membership site that give you access to all the tools and techniques you can personally use to build a rock solid portfolio.  This is not about stock recommendations or some kind of guru principles. It’s about sound investing decisions made based on solid stock research.  And 95% of the work is done for you.


The Dividend Stocks Rock Club will build your knowledge, skills, and investment capability from the ground up.  You’ll master the techniques you need to understand what drives portfolio growth and individual stock growth to build the portfolio you want.  Most importantly, it will give you the data at your fingertips to allow you to put the process into action from day 1.


The Dividend Stocks Rock U.S. and Canada Dividend Growth Stocks List 

Stock ListThis is the bread and butter part of the active investing portfolio of your portfolio.  These lists are your starting point for using dividends to grow your portfolio.  With a choice of 8 lists at your disposal (4 US and 4 CDN) the best dividend growth stocks available to supercharge your portfolio returns. We have used four powerful criterion to build our lists: Quality, Yield, Growth & Stability.


Most importantly, these lists are updated weekly with new stats on each and every dividend growth stocks as well as additions of new dividend growth stocks and removal of stocks that are no longer providing that all-important dividend growth. Check out the list descriptions here!


The Dividend Stocks Rock Core Model Portfolios 


We are sharing with you our talent with a series of portfolios that cover a number of different scenarios, you will be able to find a portfolio that fits your needs. There are model portfolio suggestions for Canadian investors, U.S. investors, or investors interested in investing in both Canadian and U.S. investments at the same time. There are a total of 10 different portfolios (click here to see what we are talking about) you can use to build your own. BUY & SELL updates will be delivered in your mailbox!


The Dividend Stocks Rock Premium Newsletter

Premium NewsletterThis high quality investing newsletter will provide you with first class information about macro economics, various stocks to look at and valuable hindsight about the stock market. We will cover various industries and pick the finest stocks with high dividend growth potential. I wake-up every morning to read financial news and economic data. I’m doing all the work for you and send it over once a month. It will be ready to digest and implement right away. This will be part of your favorite Sunday morning reading each month!



Baby Steps For a Better Understanding of Dividend Investing

Baby StepsThis section has been created for beginner investors who wish to learn how to build their portfolio. It explains the DSR philosophy. You don’t need thousands of dollars to start investing; a few hundred is enough. The idea is having a clear investing process to achieve your goals.
The DSR Investing Baby Steps is an 8 Step process that will guide you through all phases of investment. You can either read each steps on your screen or download them in an eBook (pdf) format.


Dividend Growth: Freedom Through Passive Income (Yearly Subscription Only)

The success of my investment strategy has found its foundation in the book Dividend Growth – Freedom Through Passive Income. For those who want to learn all about my investing strategy, I’ve written this 4.8 stars Amazon book in 2012 to explain, step by step, how I build and manage my stocks. You will also find tax optimization toools depending on which account you use to make your trades along with crucial information about the quadrant strategy I use to manage my portfolio as a whole. This book comes as a complement to the Dividend Stocks Rock yearly members only.





We have priced this product for the individual investor! Personally, I am sick and tired of the investment industry fleecing the individual investor and charging outrageous mutual fund fees or brokerage costs because they have “convinced” (read: brainwashed) us into believe we cannot invest on our own. Invest on your own and they say we are destined to a life of poverty!


We want to change that for as many people as possible through sharing this premier investment strategy.This is why we offer three options: our newsletter only registration for smaller budgets, a complete access to our stock lists, rankings, real-time portfolios and our newsletter or the annual package to save 17% on the monthly subscription.


One Year Investor Package
17% Rebate on the monthly subscription
8 Dividend Stocks List
12 DSR Portfolios
DSR Premium Newsletter
DSR Exclusive Ranking
60+ Stock cards
Bonus Book!
Long Term Investor Package
$199.95/2 years
45% Rebate on the monthly subscription
8 Dividend Stocks List
12 DSR Portfolios
DSR Premium Newsletter
DSR Exclusive Ranking
60+ Stock cards
Bonus Book!
Monthly Package
8 Dividend Stocks List
12 DSR Portfolios
DSR Premium Newsletter
DSR Exclusive Ranking
60+ Stock cards

60 Days No Question Asked Reimbursement Policy


The purpose of Dividend Stocks Rock is to provide you with high quality information to help you in your dividend investing process.  Our rates are made to be affordable for any investor. This is why Dividend Stocks Rock makes the following guarantees:


60 Days No Question Asked Reimbursement Policy – you can cancel your subscription and get full refund during the first 30 days of your membership
No contracts, cancel any time
Your price will never increase after subscribing


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32 Responses to The 7 Investing Principles I Follow To Succeed

  1. The Dividend Guy says:

    Hello A,

    I’m glad you ask about the difference between stock recommendations and what DSR offers. DSR will provide you with example of real world portfolio models that are managed in real time. The site also provide several stock lists shown according pre defined metrics. In both cases, it’s up to the investor to do further research and make his/her own investment decisions. This site provides tools to save time and make your portfolio management easy. However, it is still up to you to make your investment decision.

    I hope this answers your question,

    Best regards,


  2. Valencia Bennett says:

    Hi I’m relatively new to investing and would like to start with a small portion of funds to get started. (Around 1k or so). Would I benefit from starting this process with your DSR website? Thanks so much for your time.

  3. The Dividend Guy says:

    Hello Valencia,

    I think you would definitely benefit from it. The “Baby Step” section include a eBook teaching the basics of dividend investing. Then, we have the real life starter portfolios (American and Canadian versions) including 4 stocks. As you grow your investments, you will benefit from our stock lists and stock ranking and you can continue your financial education through our bi-weekly newsletter.

    Feel free to ask me any other questions through this page or via my email at


    The Dividend Guy

  4. Kenneth Buck says:

    Is the $149.50 an annual price and it does it includes the Dividend Stocks Rock? Can it be cancelled at any time?

  5. The Dividend Guy says:

    Hello Kenneth,

    yes, it’s the annual price to access to Dividend Stocks Rocks and all its features (portfolio models, newsletter, stock list, stock ranking, etc)

    You can cancel it within the first 30 days of purchase and get reimbursed without questions.

    Best regards,


  6. gary macdonnell says:

    Hi Mike, been receiving and appreciating your emails for some time now, I would like to ask, can you assist in providing a sample portfolio for me. My wife and I are Canadian, in our early 50’s and would like to retire now by investing in dividend paying stocks. I have 1 million in a corporate account and 2 million in cash to invest 1/2 of which is in RRSP divided equally between my wife and I.
    I am somewhat familiar with the stock market but am afraid to invest at the present time since I fear there is another crash in the near future, we lost nearly 40% in 2008 and could not handle that stress again.
    Can you offer some asistance.

    Thank you

    • The Dividend Guy says:

      Hello Gary,

      I’ll send you an email regarding your question but we don’t offer taylormade portfolio services. You can use our portfolios and combine them with a few stocks found from our stock lists, DSR ranking or our newsletter.

      Best regards,


  7. Pete says:

    Hi mike,
    I have been receiving and enjoying your emails and analysis for some time now – thank you! Like you, I am an vid dividend investor with a large side of value investing included (think Norm Rothery or Benjamin graham). As your most recent post suggests, since 2009 It has been relatively easy to do well in the markets, I have an average CAGR of 22% including dividends. The high market scares me so I dumped everything recently (including JNJ which I bought at 58, as well as WFC, MDT, And KO) – with the market so high, what is your stance on selling some of your core stocks (I.e. JNJ, KO etc.) and waiting for a correction? Regarding this great new dividends rock service, if we purchase the annual subscription now – can we lock in the annual price as early subscribers for future years?


    • The Dividend Guy says:

      Hello Pete,
      as long as you stay a member of Dividend Stocks Rock, your annual subscription price will remain the same. You will keep the price forever.



      • Pete says:

        Thanks mike. I noticed you changed your p/e screen criteria and increased it to 20. Do you mind expanding on your thoughts on the high valued market, you changed some screen criteria any changes to your investment approach (e.g. Reduce amount of assets in equities). Thanks in advance. Pete

        • The Dividend Guy says:

          Hello Peter,

          I’ve changed a few metrics (like P/E ratio and minimum dividend yield) to find more companies that are still interesting today considering the bull market. The easy money has been made right now but it doesn’t mean you can’t continue to make money with sound investments. I’ve added HP, LMT and GS.TO to my portfolio at the beginning of the year and all three companies are performing very well.

          The key is to pick companies that will continue to perform in the future and that is not only lifted by the overall bullish market. Let me know if this answers your question.

          Best Regards,


          • Justin says:

            With your site (I am not a subscriber yet), do you list the companies that are “contrarian” or perform well despite the market cycles aka bubbles?
            Thank you Mike
            I found you via dividendmantra…

          • The Dividend Guy says:

            Hello Justin,
            We don’t highlight contrarian stocks per se. We do a selection of stocks according to our dividend growth model (part core, part growth).
            Depending on the type of bubble you get, stocks will react differently. Therefore, it is hard to determine which stock will perform well during the next market crash. For example, MCD did incredibily well in 2008-2009 but I wouldn’t bet it would repeat their stock performance if a bubble would burst today.

            Let me know if you have any other questions!


  8. Pete says:

    Many thanks mike. Good value pickings are slim in this bull market. Consider me a long time member of DSR. Pete

  9. Bob Russo says:

    Hi Mike,

    In your opinion, how many stocks do you feel that the average person can adequately manage at one time. In other words, how many stocks should be in a given portfolio at any one time.



    • The Dividend Guy says:

      Hello Bob,

      This is a very good question. I think it depends on how big your portfolio is. I think 10-20 stocks is good for a portfolio under 100K, then you can go up to 25 and once you reach 500k+ 30 stocks + a few ETFs is a good average.

      I think it requires a lot of time to follow more than 30 stocks, unless you are a true passionate investor and you want to spend several hours per week looking at your stocks.



  10. Peter Campbell says:

    Hi Mike.I’m back and looking for more dividend investing information.What is your cancellation policy if I subscribe but don’t like or can’t use the information.Are you offering a trial period.The Internet Is flooded with information but my experience has been that a lot of it is of no use to small investors,

    • The Dividend Guy says:

      Hello Peter,
      You have 30 days to cancel and get your money back with the annual membership. You can also go with the monthly subscription and pay only for a month ($14.95 USD) if you don’t like the product. The cancellation process is very easy.

      Let me know if you have any other questions.

      Best regards,


  11. Paul S. V says:

    but, I must admit alongside you, that the vast majority of self-proclaimed “gurus” and so-called specialists
    are out there to gut/rip us with their ridiculous fees
    (I even dare say that your charges are a might high.)

    Nonetheless I’d like more info , … &

    DO YOU INCLUDE/COVER Canadian TITLES/Div. shares ?????????????????????????????????????????

    • The Dividend Guy says:

      Hello Paul,

      I’m not a guru, I’m just a disciplined investor who is interested in helping other investors in their investing journey. I don’t think $149.95/year is expensive, DSR members think the same.

      We do cover both Canadian and US stocks. The site is 50% about US stocks and 50% about Canadian stocks so everybody finds something interesting.

      Best regards,


  12. […] is a good place to start, but there are still lots of work to do before picking the right stocks. Following my 7 investing principles, I’ve highlighted my top 5. The list is in no particular […]

  13. […] bought LMT mainly because it is a sound business with great fundamentals. Following rule #5, I didn’t spend much time figuring when the perfect time to buy LMT was. I knew it was a strong […]

  14. MarySummer says:

    We are just starting to build a couple of portfolio of dividend stocks. We already have a solid base of index mutual funds for our RRSPs. But I want to explore the idea of dividend stocks for our TFSA and our small business investment account. My question is, how many stocks is right? Our TFSA’s hold approximately $35,000 each, so what is a good amount to invest in each stock. How many stocks to split these accounts up? $5,000 per stock? $10,000? Do you have any advice for a newbie like me?

    Thanks – Mary

    • The Dividend Guy says:

      Hello Mary,
      At DSR, We offer portfolios example for starter portfolios (less than 10K), 25K, 100K and 500K+ (for both Canadians and Americans investors).
      Our portfolio for 25K have 10 stocks equally weighted. Therefore, if you have a 35K portfolio to manage, we would suggest you buy 10 stocks at around $3,500 per position. This is enough to have a solid portfolio without doing too much diversification.

      The membership includes a “baby steps” ebook to help you starting your portfolio. This could be of great help.

      Let me know if you have any other questions,



  15. Would like to see a sample please and thanks Bill

    • The Dividend Guy says:

      Hello Bill,
      you can register and ask for a refund with no questions asked within the first 30 days. You will then be able to look through the website and read our previous newsletters.

      Let me know if you have any specific questions.

      Best regards,


  16. Steve W says:

    Hi, Mike. I am gradually transitioning to a DGI philosophy as I near retirement, and I find your blog and ideas refreshing and well-organized.

    My question relates to your various portfolios. What are the differences between them? If I understand your responses to other questions, it sounds like they are based on the account size. Is that correct?

    Steve W
    Dallas, TX

    • The Dividend Guy says:

      Hello Steve,

      thank you for your question, that’s a very good one!

      First, I have 2 sets of portfolio of the same size. e.g. two 25K, two 100K and one 500K. For the 25K and 100K, we have a conservative portfolio (more “classic” dividend growth company that will generate a stable source of income) and a growth portfolio (with companies showing higher growth potential/risk such as AAPL and DIS for example). All companies pay dividend, but the yield can go from 1% to 5% in general. We focus more on the growth (dividend growth and stock value growth) than the yield. We believe a high yield will come with holding shares for a long time and benefit from the power of compound dividend growth.

      We also offer US and Canadian portfolios (same size, same investing focus).

      Obviously, the 100K portfolio includes the 10 stocks from the 25K and we add another 10 companies. Companies hold in the growth portfolios are not part of the conservative ones and vice-versa (besides very few exceptions). Therefore, if you look at ideas to build you 100K portfolio, you will have access to roughly 40 companies held either in the conservative or the growth portfolio.

      I hope this answers your question. Let me know if you need anything else!

      Best regards,


  17. Mark Horowitz says:

    I just joined, with an annual subscription. How do I get the Dividend Growth book? I already purchased the Canadian edition, I need the U.S. edition, please!

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