☕️ Sunday Coffee: There’s no "one-size-fits-all" approach in investing
Investors have found success over a wide range of strategies
MaxDividends Mission: Help & support everyone on the way to build growing passive income, retire early and live off dividends
Sunday Coffee is a weekly emails about my personal life & business. This is a column where I share life moments, insights on stock investing, long-term investment philosophy, and intriguing thoughts to benefit you.
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Intro
There’s no "one-size-fits-all" approach in investing. Investors have found success across all kinds of strategies.
Value investing? It’s been a win for a long time. Same with momentum strategies and dividend growth investing.
Strategy or Strategies?
Spin-offs can be a goldmine, but so can small-cap stocks, high-yield plays, low-volatility picks, or high-growth stocks trading below their worth (GARP – growth at a reasonable price).
You can focus on a tight, concentrated portfolio of individual stocks—or go broad with an ETF. Buy and hold? Great. Or maybe a more active strategy with shorter holding periods? That works too.
At the end of the day, investing is about owning stuff that makes money, either by paying you cash (dividends) or increasing in value over time (or both, ideally).
With so many strategies out there, it’s easy to forget what the stock market really is… It’s a place to buy pieces of real businesses. And most businesses are working to grow their value over time.
Well-run companies take the effort put into the business and turn it into value for their owners (and hopefully for customers, employees, and other stakeholders too). The stock market gives you a chance to own a slice of thousands of publicly traded businesses.
That’s why so many different investing styles can work. But here’s the catch—not all strategies will perform equally well.
Take overvalued stocks as an example—they’ve historically underperformed. Not always, and not every time, but generally speaking, that’s been the case.
Strategies go in and out of style, and no one strategy is a winner all the time. Some strategies shine in certain environments, and others don’t. And predicting which strategy will dominate next month or next year? Forget about it.
What really matters is finding a strategy that aligns with your goals and is likely to perform well over the long term.
Once you lock onto a strategy, stick with it. Don’t jump ship chasing the next "best" thing before giving it enough time to work.
MaxDividends Strategy Key Concept
At MaxDividends, we focus on a dividend growth strategy. It’s a great fit for investors who want capital appreciation, a decent level of safety, and growing income.
As the name suggests, dividend growth investing is all about finding stocks that pay dividends and can keep growing them over time.
MaxDividends Stocks are Unique
They not only provide income but have a strong track record of increasing that income over the years.
Plus, investing in companies that consistently raise dividends has historically been a solid strategy.
Here's what it looks like in my portfolio, which I show every Friday.
There are currently 32 companies in my portfolio that pay $3,229 in dividends per year. I don't currently use dividends to live on dividends.
I accumulate capital and reinvest dividends by buying new shares. Today, my stock portfolio brings me $3,229, and I received my first significant dividends in September.
I invested the accumulated amount in buying new reliable dividend companies. And now these companies also pay me dividends. This snowball grows every month.
And the most important thing here is that not only I and my investments participate in the accumulation, but also the companies themselves. How does this happen?
During the time that I openly show my stock portfolio, 6 companies out of 32 in my stock portfolio have increased the dividends they pay.
Now I receive more dividends than at the time of purchase. 2 more companies paid solid special, unscheduled dividends.
I invested them in buying new shares and now I get even more income in dividends. MaxDividends App helps me track my action plan and forecast.
I enter my purchases in the MaxDividends App and it automatically calculates my dividend income forecast.
Do you know what is the power of the MaxDividends strategy? It is that even if I stop investing right now, my dividend income will continue to grow. And even a conservative forecast says that in the next 10 years the growth will be 4 times.
I like this way. While I am writing this letter to you, MaxDividends App thoughtfully informed me that Texas Instruments will now pay me dividends not $5.2 per share, but $5.44 per share. +1 to 6 others.
And this means that while I was walking with my family today, my passive income in dividends grew and I became even closer to my goal of $12,000 in dividends per month.
To succeed, you have to look at the business behind the stock. A struggling company can’t keep raising dividends year after year.
For a company to deliver rising dividends for decades, it needs strong economic fundamentals and a capable management team.
You’re betting on high-quality businesses that can stay relevant for years if you want reliable long-term dividend growth.
That aligns with Warren Buffett’s approach—buy great businesses and hold them for the long haul, like he says:
When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever. - Warren Buffett
And that’s where MaxDividends comes in to add real value.
Best regards, Max
Sunday Coffee is a column where I share insights on stock investing and the philosophy of long-term investment, discuss intriguing thoughts and ideas that could benefit you.
All Sunday Coffee posts you can find here
No one wants to work forever, and the question of financial security becomes more pressing. Can we really count on enjoying life after retiring, without having to find another job just to make ends meet?
Early Retirement
My High Yield Dividend Growth story
My name is Max, nice to meet you! I am an entrepreneur, dad to three, and a private investor in stocks. Pick up high-yield dividend growth stocks to live off dividends and retire early.
The idea of growing passive income typically dawns on us when we realize we’re no longer in our twenties. For me, this realization hit around age 35. I don’t plan to run a business my entire life—I have big plans for other areas of my life too. I enjoy writing, blogging, and sharing my experiences. Retire early before 50 is the main mission for me now.
Ten years ago, I started investing in growth stocks. By now, the capital from those investments and my past savings have allowed me to start implementing my planned strategy. In the early years, I focused primarily on growth stocks, but over the past few years and especially in recent months, I’ve shifted more towards high-yield, dividend growing stocks.
At this stage in my life, predictable growing passive income is more important than the long-term price appreciation of stocks, because I plan to live off the dividends.
🙏 To focus on what we love, we need stop worrying about daily expenses. For me, the solution was creating a growing passive income stream through dividend stocks.
As an author of the MaxDividends Strategy I follow it to pick up high-yield & dividend growth stocks to live off dividends and retire early. I share my way and methodology of achieving the dream goal to live off dividends step by step.
Build your own dividend machine with MaxDividends to launch growing passive income, retire early and live off dividends with community like-minded
MaxDividends Community
MaxDividends is subscriber’s supported newsletter with community and premium member’s tools to start building long-term growing passive income to live off dividends and retire early.
Stories of Success
🏆 Mary: “Help me get started with you”
🏆 Jurgen: “I am done with guessing where the market’s heading”
🏆 Ann: “What will my life look like in 15 years?”
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What You’ll Get
Comprehensive tool to help you on the way retire early and live off dividends.
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MaxDividends Stocks of the Week: Top 10 Undervalued, High-Yield & Dividend Growth Stocks Every Week
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Deep dives into the top dividend stocks we hold. Key points, current statement, perspectives and consensus.
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Ready-to-go step by step weekly guide to achieving financial freedom.
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Max Dividends Portfolio: Goal $12,000 Monthly for 120 Months
My personal MaxDividends portfolio with all changes and updates weekly.
My personal life & business column where I share life moments, insights on stock investing, long-term investment philosophy, and intriguing thoughts to benefit you.
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FAQ
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