Dividend Carpet Bombing is one of those secret fundamental rules that a lot of dividend investor know but tend to forget. It’s simple, reasonable and extremely powerful.
Dividend Carpet Bombing means that one buys companies that complement each other, seen from a dividend perspective, and one collects collects dividend from every damn month.
One can buy a company that pays a 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 when I first 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 to stay 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 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 motivates 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|
|April||SDIV, GJF, SPOG, SOR, STB, OHI, Vereit|
|May||SDIV, VEI, ASC, TEL, YARA, HCN, HCP, SBUX, KMI|
|July||SDIV, OHI, Vereit|
|August||SDIV, HCN, HCP, SBUX, KMI, VOD|
|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.
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