Entries by mdfarragher

The benefits of a 4-day workweek

For most of the last year I have been working 5 days a week at my primary job, earning a steady paycheque. Life has been good, with an average gross income of 4E – four times my average monthly expenses. Unfortunately taxes eat up 50% of my income, but that still leaves me with a […]

2014 – The year in review

Three years ago, in the summer of 2011, I was at the absolute peak of my net worth. All the money in all of my bank accounts combined equalled 42 times my average monthly expenses (E). A net worth of 42E is pretty amazing, because it only takes 300E to retire. Without realising it I […]

Last minute shopping spree

Four months ago I decided to become a Dividend Growth Investor and become financially independent. To motivate myself to keep buying stock every month, I set myself a goal to end the year with at least €10,000 in my portfolio. Today it’s December 29. How did I do? Did I achieve my goal? Yes I […]

A new ranking formula for my portfolio

Earlier this week I discussed several ranking formulas for the stocks on my watchlist, to help me pick the stock for my next purchase. I talked about the Yield plus Inverted DPR rank and the ChowderDiscount rank. By combining the two into a unified rank I discovered that BMW was the best candidate for my next […]

How I rank stocks on my watchlist

Every month on the 8th and the 24th I invest €1000 in new stocks. In 15 years my stock portfolio will grow large enough for me to be able to pay off all my monthly expenses with dividend income alone. On that day (on my 59th birthday) I can effectively retire. I’ve been investing since […]

The risks of chasing high yield

After four months of investing I now have eight stocks in my portfolio: Ageas (AGSN), Apple (AAPL), Billiton (BLT), Enagás (ENG), Moët Hennessy Louis Vuitton (LMVH), Red Eléctrica de España (REE), Suez Environnement (SEV) and Unilever (UN). I want my portfolio to have a dividend yield of at least 4%, because this is the minimum […]

Income recap – November 2014

Strangely enough you do not hear a lot of people talk about diversifying income. Almost everybody I know has a single full-time job. What would happen if they get fired? They’d be forced to dig into their reserves while looking for a new job. I had my own wakeup call when I left my startup […]

Portfolio recap – November 2014

Every month on the 8th and the 24th I invest €1000 in new stocks. In 15 years my stock portfolio will grow large enough for me to be able to pay off all my monthly expenses with dividend income alone. On that day (on my 59th birthday) I can effectively retire. I’ve been investing since […]

My first dividend from Apple

Three months ago I decided I was going to be a dividend growth investor. Every month I would buy dividend growth stock and reinvest the dividend to take advantage of compound growth. In 15 years my stock portfolio will grow large enough for me to be able to pay off all my monthly expenses with […]

Early retirement and the dangers of frugality

Many dividend growth investors want to retire early. They purchase high-yielding stocks every month and hold on to those investments for as long as possible as they receive a continually increasing stream of passive dividend income. Eventually they have invested 300 times their average monthly expenses and they can retire. The monthly dividend income now […]

My diversified income

When building a stock portfolio for dividend growth investing pretty much everybody agrees that it is wise to diversify. Investing 50k in one company is obviously a bad idea. What if the stock suddenly crashes? But invest 1k in 50 different companies and suddenly your risk is reduced enormously. Those 50 companies are not all […]

My portfolio so far

Two months ago I decided I wanted to become a dividend growth investor. Dividend Growth Investors purchase dividend stocks that grow their dividends over time and then hold onto those investments for a long time as they receive continually increasing passive dividend income from those companies. They use the dividend income from their stock portfolio […]