How to use Dividend Carpet Bombing

Dividend Carpet Bombing is one of those secret unknown fundamental rules that a lot of dividend investor forget. It´s simple, reasonable and extremely powerful.

 

Dividend Carpet Bombing means that one buys companies that complements each other, seen from a dividend perspective, and one collects dividend every damn month.

One can buy a company that pays dividend every month, like BOSTON PIZZA ROYALTIES INCOME FUND (BPF.UN) or the more normal one, a company that pays 4 times a year.

Norwegian stock owners might  know that this is not that easy. Our stocks normally only pay once a year, around may, so it´s important to choose strategic if you want to collect dividends throughout the year.

Personally, this is one of the things I failed heavily upon when I started as a dividend growth investor. The result was that I made my strategy work against me. Using the buy and hold – strategy will eventually pay off, but you should do everything in your power to stay focused. I struggled staying focused, because I had to wait around 6 months or even 12 months between each time I got a dividend. That´s a long time! Even the most patient people would find that utterly boring. So, help you yourself stay focused and motivated by using Dividend Carpet Bombing.

Another thing is to keep track of your dividend income. It does not matter if you use word or excel, neither if it looks professional or super simple. As long as it motives you to keep on doing what you’re doing, and that you can see the effect of compound interest effect, it´s good enough.

Here is my Dividend Carpet Bombing plan:

January:                SDIV, CCP, PEP, Vereit
February:              
SDIV, OHI, KMI, HCN, HCP, SBUX, VOD
March:                    
SDIV, CCP
April 
:                       SDIV, GJF, SPOG, SOR, STB, OHI, Vereit,
May :                        
SDIV, VEI, ASC, TEL, YARA,  HCN, HCP, SBUX, KMI
June:                        
SDIV, CCP
July :                         
SDIV, OHI, Vereit,
August :                  
SDIV, HCN, HCP, SBUX, KMI, VOD
September:          
SDIV, CCP
October :                
SDIV, TEL, Vereit
November:            
SDIV, OHI, HCN, HCP, KMI
December:            
SDIV, SBUX, CCP

I also have Kopparbergs, Nordea and Novo that I haven´t listed yet. Guess the dividend will come as a surprise.

 

As always, comment if you have any questions or if you really want to help this blog grow, share this post to fellow investors!

See you,

Mr. Stockles

8 comments

  1. I agree, waiting 6 or 12 months to get your dividends could be very boring and throw you off track over the long haul. I guess we take it for granted that in the U.S. most stocks pay 4 times a year and it’s much easier constructing a portfolio that pays out every month. Still, even here in the U.S. we have quiet months as most companies pay at the end of every quarter, March, June, September, December. Nice looking carpet bomb above. Happy to see a few similar names paying us both.

    1. Hi DivHut,

      Thanks for the comment and yes it´s easier. I remember when I started doing stocks about five years ago, and got my first dividend payment. It was cool, but I didn´t really understand what happened, and the week after, I had already forgot what a dividend was, and wouldn´t know until 12 months later. Unfortunatly, a lot of young investors here in the nordic tend to buy nordic companies, and they follow my mistakes. I guess it´s easier to buy the companies you see each day and hear about in the news. Another factor is that the dollar is about 9 % overvalued against our currency (if one believes in these estimates), which might make some potential DGI wait. After a while, I just understood that currency is something I have to neglect. It´s do difficult to figure out what time one should buy with the dollar and when not to.

  2. Never heard the term before…! Good one.

    I understand waiting is no fun. I agree under the conditions that you buy a stock in line with your rules. Not in line with a month that could use a dividend.

    In order not to be bored, o have fun money

      1. I guess he means that you should not buy a stock because it pays dividend a certain month, but because its a good company, and that it fits your investment strategy.

    1. Hi Mr. Robot

      Yes, it´s pretty interesting. Of course one should now be buying companies solely based on the payment date, but it has helped me become more focused as a dividend investor. Thanks for stopping by my site.

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