Dividend carpet bombing

Published by Supertortuga on 2016-03-06

This concept has nothing to do with warfare, with the possible exception of financial warfare. To lay a carpet where the bombs are dividends refers to having a stock portfolio with stocks that pay dividends distribibuted throoughout the year, preferably with several payments for each kind of stock. One advantage of this strategy is that the income is more evenly distributed over the year, which may be an advantage if the objective is to finance your living from the dividends.

If the desire is to reinvest the dividends, it can also be an advantage to have an even cash-flow, that permits buying stock on several occasions during a year, which tend to give a more representative acquisition cost (if you only buy at one single occasion, there is a risk that you buy too expensive).

On the Internet there are several bloggers that use this streategy to create an even cash-flow from the stock dividends. In most cases, these bloggers are also representatives of the value investing filosophy, in which the dividen is only one of theparameters when looking for attractive stocks to invest in. I recommend the following blogs:

  • Petrusko - Swedish value investor, that lays nice dividend bomb carpets
  • Dividend Mantra - American blogger that has created an impressive portfolio
  • Don Dividendo - Spanish blog about dividends (awhich by natural reasons is focused on the Spanish stock market)

On these sites you will find links to several websites and blogs, where you can find lots of interesting reading about economy, stocks and financial freedom.


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