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!