IVT - 8 Stocks And 1 ETF I'm Buying The Second Week Of June

2024-06-08 08:05:00 ET

Summary

• I named my investment portfolio the "Cashflow Compounders Club" to emphasize the goal of maximizing cashflow through dividends.
• My goal is to someday withdraw only the dividends from the portfolio without selling shares, like harvesting fruit from trees without cutting them down.
• I explain why I think the Fed is making bad policy decisions based on flawed inflation data.
• I also delve into some more data suggesting that the US economy is in the late stage of the cycle, not in the early recovery or resurgence phase.
• Finally, I provide some commentary on my buy list for this week, including 8 high-quality dividend growth stocks and one ETF.

Some folks give names to their cars or houses.

As an unabashed dividend investing nerd, I gave a name to my portfolio: The "Cashflow Compounders Club."

Aside from the nice ring of the alliteration, the name identifies and provides a reminder of the goal -- the raison d'être -- of my investment portfolio. It is to maximize cashflow, both current and future.

And the word "cashflow" there is a double entendre. It refers to both cashflow at the company level and cashflow at the shareholder level in the form of dividends or distributions. The former is a prerequisite to the latter.

The most standard form of investing is to pursue maximal total returns, primarily from stock price appreciation. This approach certainly works. It's tried and true. But it implies that someday, when an investor switches from accumulation to withdrawal, one will have to sell shares to do so.

I'm personally averse to this method of funding withdrawals.

In an ideal world, I'd prefer to withdrawal only the dividends thrown off from my portfolio without touching the shares. In a really ideal world, I'd like to withdrawal only a portion of the dividends my portfolio generates....

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