As DRIP Investors, it doesn’t matter if the stock market rises (Bull Market) or declines (Bear Market). We are buying an income stream—dividends— that will ultimately replace our wages or self-employment income. If after we buy a stock, it drops in price, we still receive the same dividend payment and that dividend, if reinvested, buys more shares resulting in a higher dividend yield.
The Dow Jones Industrial average (DOW) ended 2023 up by 13.7% recouping more than what it had lost in 2022. Most of the DRIP stocks we follow ended the year at higher valuations. BUT, there are still some great businesses or DRIP stocks priced right to buy NOW.
Go to our website, www.JeffersonianGroup.com, and look at Newsletter Issue 41-2023, dated October 20, 2023. We recommended 24 Great Businesses to Buy Now; 21 are still great buys as of December 29, 2023. The three that fell off our list and are currently overpriced include: (1) Sysco Corporation (SYY); (2) Bank OZK (OZK) and (3) Avient Corp (AVNT).
As of December 29, 2023, Cisco Systems (CSCO) dropped in price, becoming a Great Buy at $50.52 per share, yielding 3.09%.
In addition, we have added the following four DRIP stocks to our portfolio:
· Franklin Resources Inc (BEN) - $29.79, yield = 4.13%, Paid & Raised 43-Years
· Tyson Foods Inc (TSN) - $53.75, yield = 3.65%, Paid & Raised 12-Years
· HP Inc (HPQ) - $30.09, yield = 3.65%, Paid & Raised 14-Years
· Texas Instruments (TXN) - $171.72, yield = 3.03%, Paid & Raised 20-Years
BEN’s average annual dividend increase over the past 10-years has been 12.10%; TSN has averaged an annual dividend increase of 25.9%; HPQ has averaged a 13.51% dividend increase over the past 5-years; and TXN has averaged an annual dividend increase of 17.61% over the past 10-years.
With the above DRIPs and the Great Buys from our October Newsletter, you now have 26 DRIPs to choose from!
If you are interested in becoming financially independent and desiring freedom from the 9-to-5 daily grind within 10-to-15 years, keep buying DRIP stocks.
To understand why Gold, Bonds, ETF’s, Mutual Funds and Real Estate should be avoided, please read, The Best Kept Secret to Financial Freedom, Amazon.com: The Best Kept Secret to Financial Freedom eBook : Beard Jr., Robert G.: Kindle Store. Pass this information along to your family, friends, and associates. Get your children and grandchildren started early!
Dum Spiro Spero—While I breathe, I hope.
Slainte mhath,
Robert (Mike) G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.