Now, let’s take a minute to think about this tree. It started as a single seed which grew roots and was firmly planted in the ground. It then grew branches and, with each passing year, became stronger and more resilient to the harsh elements. It needed someone periodically tending to it to make sure it got enough water, that the soil was tended to, and the branches were pruned when necessary.
And, so the same for my tree. My “money tree”, that is.
When I think of my financial journey, I think of a little seed that has been planted (the idea of not wanting to be wholly dependent on a 40 hour-per-week job), watered (reading and learning about saving and investing), and sprouting branches (acquiring highly stable stocks that are priced low but valuable) with vibrant, healthy leaves (growing dividends that I’m able to “pluck” and have deposited in my account every month).
I’m at the phase where I am starting to grow branches on my money tree. This involves investing in high quality stable companies that have history of paying dividends and increasing their dividend payouts. The key to my investing strategy is to pick companies that deliver goods/services that are used in our everyday lives but happen to be undervalued. This ensures that the tree grows without atrophy. And with less atrophy, my tree will be able to grow from a little teeny seedling, to a scrawny sapling, to a huge expansive oak tree. I’m looking forward to the shade (financial security) that my huge tree will bring!
Here is a list of stocks that I will be tracking and looking for opportunities throughout the year (in no particular order):
- The Clorox Company (CLX)
- Chevron Corporation (CVX)
- Walt Disney Company (DIS)
- Johnson & Johnson (JNJ)
- The Coca-Cola Company (KO)
- McDonald’s Corporation (MCD)
- Nike Inc. (NKE)
- The Procter & Gamble Company (PG)
- AT&T (T)
- Verizon Communications (VZ)
- Wal-Mart Stores (WMT)
- Exxon-Mobile Corporation (XOM)
- Target Corporation (TGT)
- General Electric Company (GE)
- IBM Corporation (IBM)
- Deere & Company (DE)
- Unilever PLC (UL)
- Pepsico (PEP)
- Aflac Incorporated (AFL)
- Colgate-Palmolive (CL)
That’s it! Stay tuned to see which purchases I make this year. I’m looking forward to sharing why I chose each particular stock including an overview of the company, the fundamentals, risks, and valuation.
Thanks for reading.
Disclaimer: Material presented is for informational and entertainment purposes only. The information listed is the opinion of the author and should not be taken or relied upon as investing advice. Neither the information, nor the investing advice, constitutes a solicitation of the purchase or sale of any security or investment of any kind. Please do your own research to come to your own conclusion before buying or selling any stock.
Image: Death to Stock Photo, with graphics added by One Woman’s Worth.